What is a trade sale?
Definition of a trade sale
A trade sale is the sale of a company, or part of a company, to another business that will carry on the company’s trade.
FreeAgent is easy-to-use accounting software for small businesses and freelancers. Get started on a 30-day free trial!
A company may sell off one of its divisions to another business so that it can concentrate on the rest of its business. Alternatively, a company may be required by law to sell off a division, perhaps to comply with competition rules.
Got questions? Ask Emily!
FreeAgent's Chief Accountant Emily Coltman is available to answer your questions in the comments.