The SPAC market experienced a significant downturn in the third quarter, with IPO volume falling to a five-year low. Merger deadline extensions have given some SPACs more time to find a target, increasing our SPAC Attack Index, but the rate of growth has slowed as less capital enters the system. Investors are becoming increasingly hesitant to fund new SPACs as rising interest rates drive up the cost of capital. The number of canceled transactions also increased amid higher redemption rates and regulatory scrutiny. Given the fierce competition among SPACs looking for a limited number of remaining merger targets, SPACs are expanding the scope of their target search beyond the typical … [Read more...]

Our SPAC Attack index has continued to achieve all-time highs with each successive quarter despite slowing trends in IPO activity. SPACs continue to face intense pressure to find strong, marketable targets in the face of heightened SEC scrutiny and this quarter saw a meaningful correction from Q1 2022 in the multiples of announced transactions. Time is of the essence for many of the SPACs still searching for targets, and strong middle market companies with compelling growth stories and histories of profitability remain the most enticing targets to be taken public. … [Read more...]

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 … [Read more...]

Colonnade’s SPAC Attack Index rose 35% to 1449 in Q4/2021, as pressure continues to build on the mountain of SPAC capital raised in the past six quarters to find suitable acquisition targets. Our index increased nearly five-fold in 2021. The pressure on SPACs to deploy capital in a short time period continues to influence deal dynamics in the private markets. A choppy stock market and high redemption rates are pressuring SPACs to find compelling investments in a hurry. Strong demand remains for growing, profitable companies that are ready to go public through a SPAC. … [Read more...]

Colonnade’s SPAC Attack Index rose 41% to 1072 in Q3/2021, as pressure continues to build on the mountain of SPAC capital raised in the past five quarters to find suitable acquisition targets. Nearly 90 new SPAC IPOs were priced in Q3, injecting an additional $18 billion of capital into the system. More than 450 SPACs that have raised over $133 billion are aggressively looking at deals. Over 80 SPAC mergers were completed in Q3/2021, double the prior quarter, providing some relief to the system. The pressure to deploy capital in a short time period continues to influence deal dynamics in the private markets. … [Read more...]

Welcome to our SPAC Attack Quarterly Update for 2021.Our report analyzes data from the second quarter of 2021 and provides three key themes of relevance to middle market mergers and acquisitions. We track SPACs (Special Purpose Acquisition Companies) because they directly affect the M&A marketplace. SPACs are an increasingly important buyer universe of private companies. … [Read more...]

Welcome to Colonnade Advisors’ SPAC Attack Index. We track SPACs (Special Purpose Acquisition Companies) because they directly affect the M&A marketplace. SPACs are an increasingly important buyer universe of private companies. This report is meant to be additional reading for those interested in how we developed our proprietary index. It is short but compact with two pages of reading. We visualize the SPAC Attack Index as a pool of capital as if within a “pressure cooker” representing the total amount of capital that has entered from SPAC IPOs, placed under pressure based on the deadline to de-SPAC. Each of our SPAC Quarterly Updates reports the most recent quarter’s SPAC … [Read more...]