SPACs: performance analysis on a constantly evolving trend

This dissertation aims to evaluate the performance of a set of special purpose acquisition companies (SPAC) in the US market, comparing it with previous results obtained with similar methodologies and with results from a traditional IPO. From the companies’ point of view, SPAC represents a quicker and more efficient method to raise capital both from public markets and institutional investors, avoiding the heavy costs in time and expenses of the IPO procedures. The literature (i.e., Lakicevic and Vulanovic, 2013; Dimitrova, 2017) has suggested that the market has a positive trend when considering M&A announcements, regarding SPAC. However, the enthusiasm around this tool may be related to the IPO phase, as the returns turn negative quickly. The analysis over the trend denotes that returns have been traced in the last decade because the market is getting more efficient as time pass. The process of maturation is constantly going on and it is leveling out the gap in terms of performance between short and medium/long term performance.