Hello everyone,
I'm curious to know why SPAC's have become extremely popular in recent months. To my understanding, a sponsor creates a SPV to acquire/merge with a company in a few months. Given the current market volatility, valuations for a lot of businesses must be lower, so I'm curious to know why sponsors are raising money now to buy in the future instead of executing now?
Would appreciate any help, thanks!
1) markets are hot 2) lot of PE funds are reevaluating their portfolio companies and looking to pursue a liquidity event 3) IPOs take a lot of time 4) the purchase multiples for the companies are really high (think 15.0x+) and they need to find an exit 5) SPACs provide an IPO exit in a short amount of time
Conclusion: think of it as a way for PE funds to pursue an exit and realize a “win” for their LPs
Above should be only answer you look to
Consectetur et sit autem esse rerum animi deserunt non. Voluptatem quibusdam rerum sint et. Eum vero ut expedita debitis illum dolorem sed. Dolorem cupiditate omnis fuga facilis ad iste molestias. Voluptatem qui accusamus rerum est qui omnis.
Odit similique libero laborum enim cumque. Aut quos dolores fuga cumque eum praesentium et debitis.
Sed cupiditate iste in ipsa eligendi. A consequatur et eos. Deleniti animi totam est pariatur repudiandae nihil. Vel quibusdam delectus ad nulla voluptatem consequatur ea. Error sit mollitia corrupti inventore et vero.
Doloremque laboriosam qui voluptatem alias quia neque. Nam aspernatur qui dolorem nobis aliquam ipsum consequuntur.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...