Top Three Corporate & Securities Issues To Consider For 2022

Time to De-SPAC. Given two strong years of new Special-Purpose Acquisition Company (SPAC) listings, the supply side of the SPACs market is now teeming at nearly 580 SPACs looking for merger targets, with about $160 billion of SPAC capital waiting to be deployed. Of those, around 230 SPACs, having to de-SPAC this year, are under a time crunch to find targets to acquire. In addition, many companies that have already gone public through a SPAC are not seeing sufficient growth to support their initial valuations, so they may also seek strategic M&A to accelerate growth. Given this dynamic, 2022 looks to be an opportune seller's market for private companies, with a sustained level of de-SPAC and merger activity. Clients looking to sell or raise capital are advised to seek our guidance to wisely navigate the potential opportunities for the seller with the upper hand to leverage the de-SPAC market conditions to maximize value.