Pre- and post-merger performance of S&P vs SPAC returns 2016-2019
Between 2016 and 2019, the S&P strategy was more successful than the SPAC strategy in improving share performance value after a merger has taken place. During this time period, S&P shares increased by 40 percent in value post-merger, as opposed to the significantly lower 17 percent of growth pre-merger. On the other hand, SPAC share values were negatively affected by mergers, as they dropped by 14 percent post-merger as opposed to the significantly higher 46 percent of growth pre-merger. However, the opposite was true in 2020 when the S&P strategy outperformed the SPAC strategy.
