Law360, New York (March 10, 2017, 3:09 PM EST) -- 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 make 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. For instance, a seller may engage in negotiations with a third party regarding a sale of the business while at the same time preparing documents needed to make an initial public offering. There is evidence that pursuing multiple exit strategies at once creates value for investors. One study estimated that managing two exit strategies concurrently can raise the ultimate premium received by sellers in a transaction by 22-26 percent in private sales and 18-21 percent in public sales. However, a multitrack process is complex and potentially costly. Further, businesses must continue to manage their operations and build and maintain customer relationships and confidence while coordinating with their legal, financial and other service providers in connection with the proposed transaction. Accordingly, it is critical that multiprocess exit transactions are managed efficiently and effectively....