Dual-Track IPO and Sale Process

Summary

This practice note discusses the dual-track initial public offering (IPO) and sale process. In recent years, many privately held companies seeking to provide their investors with an exit opportunity have simultaneously prepared for an IPO and conducted a process for a private sale of the company. This is particularly true for companies owned by private equity investors, as this "dual-track" process, while demanding, can help ensure a successful and complete exit for the investors at a potentially higher valuation. This practice note discusses selected considerations when contemplating a dual-track strategy, and how attorneys can assist companies, boards, company management, and investors in effectively evaluating and conducting a dual-track process.