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Happy Friday and welcome to another edition of Axial Radar!
Seems like everyone from Steven Cohen to Shaquille O’Neal is getting in on the recent SPAC boom. There have been over 130 SPAC IPOs this year alone, leading the Wall Street Journal to dub 2020 as The Year of the SPAC. The use of a Special Purpose Acquisition Company is by no means a new financial concept, so what’s behind the sudden surge in activity?
One possible explanation can be found in a recent survey of 1,000 M&A executives conducted by Deloitte. The survey found that 42% of participants had an increased interest in pursuing alternatives to traditional M&A since March of this year – specifically, alliances, partnerships, joint ventures, and yup, you guessed it, SPACs. Head down to this week’s featured Industry Trends section of Radar to read more about how factors like economic and political uncertainty are driving deal professionals to pursue alternative strategies as they look towards the future.
Our featured buy-side members this week include an industrials focused buy-and-build PE firm, a PE firm investing out of its fourth fund, and an LA based private investment firm led by a seasoned investor with over two decades of experience. On the sell-side we’ll introduce you to a 20 year old investment bank, and a human and financial capital consulting firm.
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