Insight

SPACs update: An even bigger deal

How 2020 is shaping up to be the year of the special-purpose acquisition company

James Brannan

James Brannan

Advisory Managing Director, Financial Due Diligence, KPMG US

+1 212-954-1987

Keyu Zhu

Keyu Zhu

Partner, Advisory, Accounting Advisory Services, KPMG US

+1 212-872-4422

Patrick Brennan

Patrick Brennan

Managing Director, KPMG US

+1 617-894-3256

An investment vehicle that has been around since the 1990s, interest in SPACs has surged this year. A record amount raised for these “blank-check companies” to take private firms public is currently searching for targets, especially in the technology, financial, and healthcare sectors.

A new KPMG paper, 2020: Year of the SPAC, reports on what makes SPACs so attractive but also explains the intricacies of working with them. Key challenges: preparing for audit and reporting compliance as a public company.