SPACs are under intense pressure to find good targets. Our SPAC Attack index is at an all-time high, owing to the surge in SPAC IPO activity in recent years.
New proposed SEC regulations and souring investor sentiment are driving a fevered pitch among SPACs to source high-quality, profitable, and growing targets that are ready for the public markets. M&A multiples are up considerably in Q1/22, and demand for good deals remains strong across various buyer groups. With macro headwinds such as inflation, supply chain challenges, and global conflict, we expect SPACs to accelerate their pursuit of solid investments before their time expires. This can be a great opportunity for strongly positioned middle-market firms seeking to go public through the SPAC route.