Competition among blank-check companies to find mergers is already stiff. Share-price declines and a ticking clock to take companies public are ratcheting up the pressure, The Wall Street Journal reports.
The new challenges for creators of SPACs result in part from the abundance of the deals that raised money early in 2021. Looming over these firms is a two-year deadline to do a deal or hand back cash to investors.
Now that shares of many SPAC-related companies have fallen, fewer startups are interested in going public through a SPAC. That mismatch is intensifying competition between some blank-check firms for the same private firms, known by some on Wall Street as a “SPAC-off.” Read more.
