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Contributed: Blank check-up uncovers a digital health SPAC attack


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The 2020s are on course to become the decade of the special purpose acquisition companies (SPACs), also known as blank check or shell companies. SPACs are set to outpace IPOs once again in 2021, after a record year that saw SPACs mature from a once obscure method of going public to a rabid, flavor-of-the-month frenzy amidst both institutional and retail investors.
The year of COVID-19 saw 227 SPACs top traditional IPOs for the first time in history, raising $76 billion, compared to 67 billion raised from traditional IPOs. The first two months of 2021 have so far generated 144 SPACs, raising $44 billion. Digital Health has certainly ridden the recent SPAC wave, with yet a few more splashes yet to come.  ....

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SPACs are an inside joke on Wall Street, and the joke's on you


[Photos: stockinasia/iStock, furtaev/iStock]
By William D. Cohan 10 minute Read
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“Everyone’s raising a zillion SPACs,” a Manhattan billionaire tells me, referring to special purpose acquisition companies, the latest craze on Wall Street. He doesn’t want to be seen biting the hand that feeds him (and many others), and so he asks for and receives anonymity. “Every day there’s a SPAC merger,” he continues, amazed. “There’s a rumored SPAC merger. There’s another SPAC.”
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The SPAC business is “kind of like kissing a lot of frogs,” he suggests, although perhaps a slot machine would be a better analogy. “You don’t want to be a $400, $300, $200, $500, $700 million SPAC. They’re just a dime a dozen, unless you have something special.” ....

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Transcript: Doug Braunstein - The Big Picture


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VOICEOVER: This is Masters in Business with Barry Ritholtz on Bloomberg Radio.
BARRY RITHOLTZ, HOST, MASTERS IN BUSINESS: This week on the podcast. I know, I say it every week, but I have an extra special guest. His name is Doug Braunstein. You may recognize the name from his years at JPMorgan Chase where he not only served as chief financial officer but he was also head of investment banking, global M&A, a member of JPMorgan’s executive committee.
Doug is currently founder and managing partner of Hudson Executive Capital. They are, for the lack of a better word, an investment firm, private equity firm, a little bit of an activist firm, they manage about $1.6 billion. ....

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