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PE firms increasingly consider blank check mergers for portfolio companies

Nov 25, 2020 - SNL Financial
Mergers and Acquisitions

These mergers can be used to de-risk or de-lever assets, and can allow those assets to go on the offensive in an uncertain environment.

Growing numbers of private equity portfolio companies have merged with blank-check companies in 2020, allowing them to de-risk, de-lever, or be opportunistic in their outlook.

Blank-check companies, also known as special purpose acquisition companies, raise capital through IPOs and then search for an acquisition target, typically having about 24 mont...