Trade Sale

Confidential business information that provides a competitive advantage, including formulas, processes, methods, customer lists, and supplier terms. Unlike patents, trade secrets are not publicly disclosed and are protected through confidentiality agreements and security measures rather than registration.

A transaction in which a company's existing management team acquires the business, often with financial backing from private equity or debt providers. MBOs are a common succession and exit route, particularly for founder-led or family-owned businesses.

A private equity transaction in which one PE fund sells a portfolio company to another PE fund, rather than to a strategic buyer or through an IPO. Secondary buyouts have become the most common PE exit route, accounting for over 50% of European PE exits in recent years.

A business in which a private equity, venture capital, or growth equity fund has invested. Portfolio companies receive not only capital but also strategic support, operational guidance, and governance oversight from the fund, with the aim of accelerating value creation and achieving a profitable exit.

The additional amount a buyer pays above the pro-rata market value of a company's shares to acquire a controlling interest. The control premium reflects the value of being able to direct the company's strategy, operations, capital allocation, and management.

The planned method by which founders or investors intend to realise the value of their investment. Common exit routes include trade sale (acquisition), IPO, secondary sale, or management buyout.

Business Asset Disposal Relief (BADR), formerly Entrepreneurs' Relief, is a UK capital gains tax relief that reduces the rate of CGT on qualifying gains when an individual sells all or part of a trading business. It applies a reduced CGT rate on gains up to a lifetime limit, provided conditions on ownership period, shareholding and officer or employee status are met in the period before disposal.

The buyer universe is the full set of parties who might realistically acquire a particular business. It is usually grouped into trade buyers — competitors, suppliers, customers or adjacent companies that gain strategic value from the acquisition — and financial buyers such as private equity firms, search funds and other investors that buy for a return.

How to Sell a Business: The UK Owner's Guide

The owner's hub — the 24-month plan, what buyers pay for, and the evidence that defends the multiple.

Business Exit Strategies Compared: Trade Sale, MBO, EOT or IPO

How a trade sale compares with private equity, an MBO, an employee ownership trust and an IPO, including the dual track exit.

AI and Competitive Moats: Valuing Proprietary AI Systems

Not all AI creates competitive advantage. This article examines the four types of AI moats — data, model, integration, and network — and provides a valuation framework for assessing the defensibility and durability of proprietary AI systems.

How do I sell my business?

Prepare the business and its evidence base, agree a valuation view, appoint an adviser, market to a curated buyer list under NDA, negotiate heads of terms, then complete after due diligence.

What is Business Asset Disposal Relief?

Business Asset Disposal Relief (BADR), formerly Entrepreneurs' Relief, is a UK capital gains tax relief that reduces the CGT rate on qualifying gains when you sell a trading business, up to a lifetime limit, subject to conditions.

How do I find a buyer for my business?

Map your buyer universe of trade and financial buyers, then reach them confidentially through an adviser using an anonymous teaser and, under NDA, a fuller information memorandum, ideally running a competitive process.