Media Coverage
Source: CFO Brew
Media Coverage
Press Contacts: Erik Cummins, Matt Hyams, Taina Rosa, Olivia Meyer
07.10.26
Special purpose acquisition companies (SPACs) have spent the last few years trying to recover from the boom and bust of 2021. That year, a record-breaking 613 SPACs, or blank-check companies, went public in the US, raising $318.1 billion, according to recent numbers from financial data provider Dealogic. Many of these SPACs couldn’t find merger partners, and 330 (54%) ended up liquidating.
But now, SPACs are back. Roughly 122 blank check companies have listed their shares as of June 24 this year, according to Dealogic.
“There’s certainly an increase in recent SPAC IPO activity after the downturn…it’s not at the same level, though [as 2021]; people think it’s back, but maybe in a healthier way, maybe a bit more of a selective way,” Stephen Ashley, a partner at law firm Pillsbury Winthrop Shaw Pittman, told CFO Brew.
Companies thinking about a SPAC deal need to be prepared. Private companies looking to go public—either through a traditional IPO or a SPAC—need an audit by a PCAOB-registered firm, Ashley said. Most companies seeking an IPO in the near term, possibly in the next two years, should “start thinking about getting [the audit] ready well in advance,” so they can “do the work [and] make sure there’s no surprises,” he said.
Having a completed PCAOB audit can make a company “more attractive” to SPACs, Ashley said. This is because SPACs have finite lifespans. Once they go public, they typically have 18 to 24 months to find a company and complete a merger. If they don’t, the SPAC has to give the money it raised back to investors.
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