SPAC CHALLENGES

摘要

In the past three years,special purpose acquisition companies,or SPACs,have enjoyed a surge in popularity,with a noticeably large proportion targeting the exploration and production,midstream and oilfield service sectors.Though several of these energy-focused SPACs have announced or closed transactions,at the time of this writing,we counted 10 energy-focused SPACs with around $2.6 billion in available capital that are still seeking a transaction.The SPAC structure is popular,but it presents challenges to sellers when they transact with a SPAC.There are several reasons why SPACs have had an increasingly difficult time finding a transaction in the last six months.