M&A Transaction Or IPO: Why Not Pursue Both?

There may be legal advantages to a dual-track strategy in the current Canadian marketplace


Over the past year, as Canadian capital markets have regained their footing, Canadian private companies in search of greater liquidity have generally had a wider range of strategic alternatives to explore. One increasingly popular option is the "dual-track" or "parallel-track" IPO/M&A process, in which the company simultaneously pursues both an initial public offering and a negotiated or controlled auction sale process (or other specific sale process). Because market and economic conditions have not generally favoured dual-track processes in recent years, some boards and shareholders may find the concept relatively unfamiliar. The purpose of this article is to highlight, from a Canadian legal point of view, some of the potential benefits of pursuing a dual-track strategy for Canadian private issuers, Canadian portfolio companies of private equity groups and Canadian