Abstract
A PRIVATE company may adopt a trade sale as an alternative to flotation, if its growth rate and quality of earnings is not up to the rigours of going public, and it is also wise to go this route if its management does not want to face up to the pressures of running a public company. Such an exit may also produce a higher immediate exit valuation, often with a share offer or cash alternative, but will lose out on future growth, unless the acquirer has even more potential than the company concerned.
This is a preview of subscription content, log in via an institution.
Buying options
Tax calculation will be finalised at checkout
Purchases are for personal use only
Learn about institutional subscriptionsCopyright information
© 2008 Richard Thompson
About this chapter
Cite this chapter
Thompson, R. (2008). Trade Sales. In: Real Venture Capital. Palgrave Macmillan, London. https://doi.org/10.1057/9780230594067_18
Download citation
DOI: https://doi.org/10.1057/9780230594067_18
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-30035-8
Online ISBN: 978-0-230-59406-7
eBook Packages: Palgrave Economics & Finance CollectionEconomics and Finance (R0)