By deal volume, Reverse Mergers achieved a record-breaking year in 2021 — and no, it wasn’t just because of SPACs.^*).

According to recent data, both traditional and SPAC-based Reverse Mergers have gained significant traction. Moreover, the U.S. Securities and Exchange Commission (SEC) has indicated an increasing focus and engagement with both types of transactions — SPAC and non-SPAC Reverse Mergers alike.

In total, 398 reverse mergers with an aggregate value exceeding $134.8 billion were completed in 2021, marking the highest annual figure on record.

This form of transaction — where a private company becomes public through a merger with an already listed entity — can dramatically shorten the time and reduce the complexity required to go public. Of these reverse-merger deals, 246 transactions worth more than $113.2 billion involved Special Purpose Acquisition Companies (SPACs) and are categorized as De-SPAC transactions.

More than 60% of all reverse mergers in 2021 were SPAC-related deals. Nonetheless, it’s notable that traditional, non-SPAC reverse mergers reached a record high as well, totaling 152 transactions during the same year.

Source: Bloomberg Law

^*) A SPAC (Special Purpose Acquisition Company) — often called a “blank-check company” — is a corporation with no commercial operations that goes public through an IPO for the sole purpose of acquiring or merging with an existing private business. Once the SPAC becomes publicly traded, it identifies and merges with a target company, effectively taking that private company public — similar to what is described under Why Reverse Merger and Function: a reverse merger using a publicly listed “shell” created specifically for such transactions.