Acquisitions of Recent deSPAC’d Companies on the Rise

Joe Sulzbach, David Slotkin, and Gargi Bohra authored an article for Bloomberg Law discussing an increase in the acquisition of deSPAC’d companies even in the face of a down market.

“One reason that these acquisition prices may be acceptable is that many deSPAC’d companies are either pre-revenue or do not generate sufficient cash from their businesses to sustain their operations in the long term,” the authors wrote. “At the same time, many of these companies did not receive sufficient cash in their deSPAC transaction, as significant redemptions resulted in the SPAC delivering less funds and the PIPE market – which had been providing additional financing – effectively disappeared.”

 Read the full article.