Dual-Track Process
A strategy where a company pursues both an IPO and an M&A transaction simultaneously to maximize shareholder value, leaving options open based on market conditions.
Implications
A strategy often used in mergers and acquisitions where a company pursues two potential outcomes simultaneously, such as preparing for an initial public offering (IPO) while also exploring a potential sale to another company, providing flexibility and maximizing value.
Example
Example: A tech startup engages in a dual-track process by preparing for an IPO while also entertaining acquisition offers from larger companies, allowing it to choose the most favorable outcome based on market conditions.
Related Terms
Different from single-track processes, which focus on one outcome, dual-track processes provide strategic options, allowing the company to pivot based on changing circumstances or better opportunities.