The wave of shell company-led healthcare acquisitions has ebbed as valuations have dropped and financing has dried up, Modern Healthcare reports. Special purpose acquisition companies experienced a meteoric rise in 2020, when more healthcare companies turned to these “blank check” companies as an alternative to executing their own initial public offerings.
“The SPAC frenzy has really cooled, but it still brought public equity markets to healthcare,” said Matt Wolf, director and senior healthcare analyst with RSM. “We have seen the crest in SPAC activity so to speak, but it’s not going away.” Read more.
