Use this button to switch between dark and light mode.

Exit, Stage Left: Multi-Process Exit Transactions in Private Equity

February 08, 2022

When a private equity fund or other owner of a private business undertakes an exit transaction, it does so after much planning and preparation. An exit transaction is a dramatic event in the life of a business, and the controlling shareholder(s), the board, and management should carefully consider their alternatives in terms of expected value and ease of execution. In many cases, fund sponsors anxious to get payments out to limited partners go a step further and work in earnest on multiple types of exit transactions simultaneously in an effort to preserve their optionality and maximize their ability to react to changes in the market. This practice note outlines certain important aspects of multi-process transactions that may bear on the specific strategy that an investment manager looking to exit a portfolio investment might ultimately decide to pursue.


Related Content

  • Preparing a Portfolio Company for Sale
    Review this practice note that offers guidance on the timing and scheduling of steps in preparation for sale, and advice to practitioners regarding coordination of the sale process.
  • Leveraged Dividend Recapitalizations
    Read this explanation of a partial exit strategy employed by private equity sponsors, whereby proceeds of a new indebtedness incurred by a portfolio company are used to fund a dividend distribution to stockholders—one option to obtain liquidity.


Practical Guidance Updates 

Featuring the latest updates from your Practical Guidance account. 

Experience results today with practical guidance, legal research, and data-driven insights—all in one place.

Experience Lexis+