2020 has been a record-breaking year for U.S. special purpose acquisition company (SPAC) activity, marked by significant growth in both the size and number of IPOs, novel changes in SPAC terms and the continued development of creative financing arrangements providing SPACs with capital incremental to IPO proceeds. These signs suggest SPACs will be more frequent and formidable bidders in the M&A market, competing for larger deals than they have in the past.