The way in which an investor plans to close out an investment. For example,...
The method by which an investor anticipates liquid... Add a comment
A fund's intended method for liquidating its holdings while attempting to achieve the maximum return possible. Typical exit strategies are wither an IPO or a trade sale to another company.
Potential scenarios for liquidating an investment while achieving the maximum possible return. For venture capital-backed companies, typical exit strategies include Initial Public Offerings (IPOs) and acquisitions by or mergers with larger companies (see paragraph 18, Section IV above).
the plan for generating profits for owners and investors of a company. Typically, the options are to merge, be acquired or make an initial public offering (IPO). An alternative is to recapitalize (releverage the company and then pay dividends to shareholders).
A private equity house or venture capitalistâ€(tm)s plan to end an investment, liquidate holdings and achieve maximum return.
Since private placements are private, cashing out of them prior to a public offering can be difficult. Most private placements outline ‘exit strategies’ or how the investor can cash out of the private placement under certain specified conditions.
or Liquidity Event
Refers to an entrepreneur's plans to provide liquidity for investors via an IPO or Merger/Acquisition. Although the IPO may be the most glamorous type of exit for everyone, the most successful exits of venture investments often occur through a merger or acquisition. Specifically, the sale or exchange of a significant amount of company ownership for cash, debt, or equity of another company.
The process by which an owner or investor liquidates his ownership in a business or real estate investment (also known as "disposition").
A planned action taken by a company that results in liquidity of the company's stock, often in the form of an acquisition by a publicly traded company or a public offering. Go to top of page
A fund's intended method for liquidating its holdings while achieving the maximum possible return. These strategies depend on the exit climates including market conditions and industry trends. Exit strategies can include selling or distributing the portfolio company's shares after an initial public offering (IPO), a sale of the portfolio company or a recapitalization.
An exit strategy is a means of escaping one's current situation, typically an unfavourable situation. An organization or individual without an exit strategy may be in a quagmire. At worst, an exit strategy will save face; at best, an exit strategy will peg a withdrawal to the achievement of an objective worth more than the cost of continued involvement.
"Exit Strategy" was the fifty-second episode aired of TV comedy series Arrested Development.