Trade Sale

A trade sale refers to the sale of a company to a strategic buyer, that is, to another company from the same or an adjacent sector. Unlike a financial investor, the strategic acquirer pursues operational goals such as gains in market share, access to technology or the realisation of synergies. The trade sale is, alongside an IPO and a secondary buyout, one of the most important exit variants.

For sellers, the trade sale is often attractive because strategic buyers, due to expected synergies, frequently pay a higher price than financial investors and accept control premiums. The process typically comprises the preparation of sale documents, a structured approach to potential buyers, due diligence and the negotiation of the purchase agreement.

The trade sale is a central component of many exit strategies in the Mittelstand, particularly in succession situations. We manage the entire process as part of the company sale and our M&A advisory and identify the right strategic acquirer.