In recent years, financial markets have witnessed the re-emergence of a technique born during the bull run of the late 1990s: the dual track sale process. ‘Dual track’ means pursuing a listing on the stock exchange and a trade sale simultaneously, primarily to create a competitive process between stock market investors and trade buyers to enhance the price and terms of sale. Dual tracks owe their revival, in part, to the increasing power of private equity investors who are keen to secure a profitable exit from their investment.
This article examines the principal differences between an initial public offering (IPO) and a trade sale, the factors that may tip the balance in favour of one route and practical issues to consider when embarking upon a dual track strategy.
