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How the Net Asset Value Is Still in Place for SPACs With Terminated Deals

Along with the hundreds of announced SPAC mergers and closed deals in 2021 came a handful of SPAC deals that were terminated. Here’s a look at what it means for the SPACs that called off mergers. What Happened SPACs can terminate deals for numerous reasons including a change in valuation sentiment, missing deadlines, or news items coming from the acquisition target. When SPACs call off deals, they lose the time and money spent to research and attempt to close a deal. The termination also sends the team back to the drawing board to try and find a new acquisition target. SPACs have a deadline date to meet, which is typically 24 months from its IPO date. With deals called off, many companies find themselves with a smaller window to complete an acquisition. The timing has to include researching the company, the deal announcement, a proper review by the SEC, and the …

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