Spacs resorts to pricey new strategies to get investors

2022-03-19 04:50:12

(MENAFN) As market confidence in the once-hot alternative to IPOs dwindles, special purpose acquisition firms (Spacs) are resorting to pricey new strategies to get investors on board.

Blank-check acquisition businesses and the companies they acquire are being forced to fork over larger ownership in projects to investors in some situations, typically at significant discounts. Dealmakers are also looking for backstop financing from investment firms and investing more of their own money.

According to statistics from industry tracker Spac Research, 13 acquisitions using Spacs have already failed in the United States less than three months into 2022. This compares to a total of 18 for the entire year of 2021.

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