Broken promises: the catastrophic value destruction of medtech Spacs These 26 companies are collectively responsible for $29bn in undelivered EV. This cohort has seen an average 79% decrease in enterprise value, from the EV that was promised in each company’s merger announcement to their current EV. With one exception, all the medtechs that closed deals with Spacs in 2021 or 2022 have haemorrhaged value. One explanation is that Spac shareholders had seen how poorly previous deals had done – as early as the summer of 2021 it was clear that the vast majority of transactions had disappointed – and decided to exit while they could.Īn analysis of post-Spac medtechs’ enterprise value shows how poor the returns have been.
Redemptions were almost unknown at the beginning of 2021, but grew swiftly thereafter and remained high throughout 2022, data collected by Spac Research show.
