Glossary

Trade-Sale

Sale of a start-up company by its management and the participating venture capital company to an industrial enterprise.

In a trade-sale, which is the most popular type of exit, the buyer benefits from the technical know-how and the market position of the acquired company. As a rule, it will attempt to retain the current management team, at least for a certain period of time. One difference between a trade-sale and an IPO is that a company typically receives a lower valuation if it opts for a trade-sale.

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