Proposed US rules causing banks to sour on SPACs are having the opposite effect on Big Law firms that see an uptick in inquiries about special purpose acquisition companies, Bloomberg reports.
Lawyers are advising SPACs, investors, and target companies on what the rules will mean for deals being negotiated now and those that could occur down the line.
“In the past few weeks the work has increased,” said Josh DuClos, co-head of the SPACs group at Sidley Austin. “We’re having conversations with investors, banks, sponsors, about what these rules will mean.”
The US Securities and Exchange Commission proposal is creating business for law firms that benefited from the boom in the vehicles. SPACs raised more than $83 billion in 2020 and $160 billion last year, constituting more than half of all IPOs in both years, according to Skadden, Arps, Slate, Meagher & Flom. Read more.
