Trade Sale

In a trade sale, a company is sold to a business usually operating in the same sector or industry. It generally provides owners with a clean break from the business allowing for a complete exit at full value.

It allows the founder to start again with a new business taking into account any non-compete clauses, or to retire with a pot of money.

A trade buyer will appreciate and look for a business that holds a good market position and has a strong reputation with robust patents and intellectual property.

There will be due diligence in a trade sale with indemnities and warranties also likely required. In opening up your business to an interested competitor, you will want to ensure that there are robust non-disclosure agreements in place.