A parallel deal and a back-to-back deal are both structured financial transactions, but they serve different purposes and operate differently.

A parallel deal involves two or more simultaneous but separate transactions that are interconnected regarding timing or purpose. For example, in mergers and acquisitions (M&A), a company might negotiate the sale of one division to Buyer A while simultaneously acquiring a similar division from Buyer B, creating a strategic realignment. These deals run in parallel but remain distinct agreements.

In contrast, a back-to-back deal is a single transaction where an intermediary immediately resells an asset or contract to a third party, often with minimal risk exposure. For instance, a trader might buy goods from a supplier and instantly sell them to a buyer at a markup, with both transactions contingent on each other. The key feature is that the second deal directly depends on the execution of the first.

While parallel deals are about coordinating multiple independent transactions for strategic goals, back-to-back deals focus on quick, risk-mitigated turnovers. Parallel deals are common in M&A and corporate restructuring, whereas back-to-back deals are frequent in trading, supply chains, and brokerage activities.