Goldman Strategists Say SPACs May Spur $300 Billion M&A Activity
Bloomberg 12/14/2020 Joanna Ossinger
(Bloomberg) Blank-check companies looking for deals could lead to $300 billion in mergers and acquisitions over the next two years, according to Goldman Sachs Group Inc.
Special-purpose acquisition companies, or SPACs, have raised $70 billion in 2020 a fivefold increase from last year, according to strategists led by David Kostin. Driving the deal boom is a hunt for yield, a shift in SPAC focus to growth stocks from value and retail investors looking for nontraditional and early-stage businesses, they said.
Some 205 SPACs have raised $61 billion in equity IPO proceeds and are searching for acquisition targets, according to Goldman.