A new Deloitte poll shows recent regulatory and professional organization guidance surrounding SPACs is pushing some dealmakers (47% private equity professionals; 21.8% corporate development professionals) to rethink how they’ll access the public markets in 2022. Further, many of those polled say their organizations are not prepared to pursue an initial public offering (37.6% private equity respondents, 41.8% corporate development respondents).
Despite those concerns, some dealmakers expect their organizations will pursue an IPO or SPAC transaction within calendar 2022 (21.3% of private equity respondents; 19.6% of corporate development respondents).
“During the recent hot deal market, some leaders have taken their companies public three or four times faster than the typical 18-24 months usually needed to complete required financial, accounting, regulatory compliance work,” said Nicole Swenson, a Deloitte Risk & Financial Advisory managing director focused on transaction execution, accounting, reporting and integration. “But, a tougher test of mettle for public companies and their leaders might be in maintaining strong financial reporting and regulatory compliance after transaction close and despite ongoing challenges.” Read more.
