The historic SPAC boom in 2020 is more than just a fad, Goldman Sachs said in a note reported by CNBC. For investors wanting to cash in on the red-hot market, the firm said it identified a key element in winning blank-check deals.
Some 205 SPACs have raised $61 billion in equity IPO proceeds and are searching for acquisition targets, according to Goldman.
“If this year’s 5x ratio of SPAC equity capital to target M&A enterprise value persists, the aggregate enterprise value of these future takeover targets would be $300 billion,” they said. Read more.
