As Uncertainty Mounts, Deal Activity Lessens
A convergence of unknowns continues to impact deal activity, with no clear end yet in sight. Geopolitical tensions, recession fears and monetary-policy concerns have pushed traditional IPO activity to its lowest levels in nearly 20 years. The SPAC M&A market, already subdued in the face of a stream of SEC rulings, declined slightly from the previous quarter in activity levels, but still shows a rise in withdrawals, cancellations and redemption rates. As the Federal Reserve raises interest rates to battle inflation, seasoned market professionals are watching closely for signs of a US economic contraction.
Source: KPMG, see below
- Continued amendments to proposed SEC 140a rules regarding SPAC projections, disclosures and underwriters.
- Proposed rules have elicited comments and requests for 140a scope clarifications.
- Stakeholder groups have expressed concern that the new rules could discourage SPAC activity.