SPACs in Europe: performance analysis and differences from the U.S

This study investigates the long-term performance of Special Purpose Acquisition Companies (SPACs) in European markets. Utilizing a dataset of SPACs launched between 2005 and 2022, we analyze their short- and long-term performance, focusing on key milestones such as the announcement and completion of business combinations. The methodology integrates event study techniques and multivariate analysis to provide robust insights. Our findings indicate that European SPACs underperform their U.S. counterparts; however, their long-term performance exhibits a less pronounced decline compared to U.S. SPACs. Notably, the involvement of top-tier banks emerges as a critical determinant of SPAC performance in Europe, a distinction from the U.S. market, where relative deal size predominantly drives outcomes.