Over the last century, mergers and acquisitions have been a hotbed for investors. 2020 has been no exception.
The previous year has shown a spike in SPAC interest, raising over $64 billion – almost the total funding of all the IPOs that year.
The first half of 2021 has proven that the momentum from 2020 shows no signs of slowing down. Keep reading to learn how to stay informed of upcoming mergers.
1. Follow the News
If you’re new to the markets or a seasoned veteran, you need to be aware of financial news on a daily basis. Various free and paid sources can keep you updated on SPAC mergers and general economic news.
Reuters.com is an excellent news source that has a section dedicated to mergers and acquisitions. It offers a scrolling page updated with announcements as rapidly as possible. Best of all, it’s free!
Another respected financial news source is SeekingAlpha.com. Similar to Reuters, they have a dedicated section for upcoming mergers and any news on current mergers. While it is free to read, you will have to create an account to access their articles.
The news isn’t limited to traditional media sources. Social media can also be your best friend if you conduct due diligence on everything that comes your way.
Anything on social media should be taken with a grain of salt. But at times, social media may release information much quicker, keeping you at the top of your merger game!
2. Set Alerts
Investing in the market can turn any particular day from the best to the worst day you’ve ever experienced, and vice versa. It’s always a good idea to have alerts set to go off on your phone if you’re invested in a listed company.
Staying up to date on your investments and knowing why it’s moving up or down on a particular day is essential to determine the strategy you have in place.
For example, if you see that the stock went down that day, you’d want to know why it went down and if the reason it went down is reason enough for you to average in.
3. Subscribe to a Service on Upcoming Mergers
While websites like Reuters and Seeking Alpha can get you the information you need, you may only be interested in current mergers. SPAC mergers have been trending into positive territory over the past couple of years, showing no signs of slowing down.
Conducting SPAC data analysis and research can be a daunting and time-consuming task. Luckily, you can subscribe to services in this digital age to help reduce the legwork and get you the information you need.
4. Learn the Lingo
It can get complex to keep all the different terminology and acronyms at the forefront of your mind regarding mergers and acquisitions.
It’s beneficial to know the jargon that news sources use to help quickly and concisely understand what’s going on. Staying up-to-date reduces the amount of time you’ll be wasting on Google.
5. Conduct Due Diligence
Due diligence isn’t something that most people think of doing. It never pays to follow a crowd blindly! When you hear a whisper of a potential merger that’s about to happen, you must conduct your due diligence into the matter.
Upcoming mergers have been the talk of the town for a while now, and the weekly economic numbers seem to entice many investors into the world of SPAC mergers.
If you enjoyed reading these five tips to be the first to know about upcoming mergers, we invite you to check out our other recent articles!