"Dual Track" Process: Maintaining Transaction Flexibility To Optimize Value

The ups and downs of the M&A and financing markets over the past few years, particularly in the emerging companies (EC) and venture capital (VC) sector, have demonstrated the importance of emerging companies and their stakeholders maintaining flexibility when pursuing liquidity transactions. Running a "dual track" process, or the parallel pursuit of both an M&A transaction and a financing transaction, such as an initial public offering (IPO), can be an effective strategy to maximize transaction certainty and optimize valuations.

M&A Exit vs IPO: What's the Better Option?

At the outset of a dual track process, key stakeholders may have genuine disagreement on the preferred path forward for the company.