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.

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.

Business tips and news

If you check this box we'll include information and updates about Making Tax Digital along with your general business tips and news.

We’ll never share your details with third parties for their marketing purposes. For details on how we use customer information, see our General Privacy Notice. You can opt out of marketing emails any time by clicking on the unsubscribe link in the footer of any email.

Related Definitions

Are you an accountant or bookkeeper?

Find out more about FreeAgent for your practice.