This article has multiple issues. Please help improve it or discuss these issues on the talk page. (Learn how and when to remove these template messages) This article provides insufficient context for those unfamiliar with the subject. Please help improve the article by providing more context for the reader. (January 2016) (Learn how and when to remove this message) This article needs additional citations for verification. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed.Find sources: "Trade sale" – news · newspapers · books · scholar · JSTOR (January 2016) (Learn how and when to remove this message) (Learn how and when to remove this message)

A trade sale is a common means of exit to a trade buyer. This allows the management to withdraw from the business and may open up the prospect of collaboration on larger projects. The term trade sale is mostly used in the context of venture capital funded businesses and refers to the sale of a company in its early stages.

It normally entails the disposal of a company's shares or assets and even liabilities, in whole or in part. This may refer to a strategic buyer who intends to grow their business or to a financial buyer who wants to generate a financial return on their invested capital at the time of exit.

Trade sales are the most frequently used as an exit vehicle both in Europe and the US.

The term trade sale may also refer to business-to-business sales, rather than sales made directly to the public.[1]

References

  1. ^ "Trade Sale Definition from Financial Times Lexicon". lexicon.ft.com.