Actionable Ideas for Companies and Sponsors

Dual-Track M&A Processes Increasing Due to Strong IPO Market

With renewed investor interest in IPOs and record equity valuations, the option to publicly list a business has gained credibility as an actionable alternative for sellers.  As a result, dual-track processes are returning as a preferred exit strategy and being utilized by both private equity as well as by corporates for executing carve-outs. 

In addition, the expansion of confidential IPO filing flexibility to all potential issuers last year, has favorably altered the mechanics of implementing a dual track strategy. Confidential filings allow the IPO issuer to delay or eliminate a significant amount of the cost of preparing a publicly filed S-1.  In addition, with the greater flexibility of a confidential filing, sellers are able to customize the timing of the sale process to (1) maximize number of participating buyers, (2) minimize time for sellers, or (3) adjust the amount of time up or down between final offers in the M&A process and IPO pricing.