De-SPAC Transactions

Abstract

A significant phase in the life of a Special purpose acquisition companies (SPACs, also termed as blank check companies) is the stage where it engages in a de-SPAC transaction, also termed as a De-SPAC merger. DeSPAC is a transaction which is often structured as a reverse merger between an already-listed acquirer (i.e., a SPAC) and a privately held target firm (i.e., an operating company which is also the surviving entity after the merger is consummated). The reverse merger enables the privately held target firm to get listed on a stock exchange. Therefore, De-SPAC transactions offer an alternative route to private businesses seeking to go public (Kolb and Tykvová 2016; Newman and Trautman 2021). This article reviews the deal activity of deSPAC transactions that were announced between January 2021 and mid-December 2023.