Strong equity markets have prompted sellers to
consider dual tracks. But running two deals at once prompts
legal challenges for both buyers and sellers
During the past 12 months the number and size of Australian
initial public offerings (IPOs) launching successfully has
surged. The continuing strength of the IPO market has in turn
supported a resurgence in dual-track sale processes. Selling a
business is a high stakes poker game; sellers of Australian
businesses in 2014 can keep calling trade buyers, knowing their
IPO hand is strong.
A traditional dual-track sale process involves a seller
running a trade sale process and preparing for an IPO at the
same time. Other sale processes or transactions can be run
competitively. The recent Healthscope process, for example,
involved potential trade sales of the whole of the business,
part of the business, an IPO and a sale and leaseback option.
UGL's recent sale of its...