Dual Track vs. IPO

This paper analyzes “dual tracking”, a useful marketing tool to increase the valuation of a private company. In line with this paper, dual tracking only refers to the choice between M&A and IPO in later stages of the selling process. In spite of an increasing number of major dual tracks, the idea is still widely unknown. In particular the scholastic world has rarely picked up this subject. This lack of academic research motivates to
explore the concept in more detail. Thereby, the focus lies on the choice between M&A and IPO and on the interaction between the equity market and the M&A market. In this context, the key question is how the capital market reacts to an acquisition of a dual tracking firm.