Exit Strategy
An Exit Strategy is a planned approach for business owners and investors to liquidate their stake in a company, realizing their financial returns. Exit strategies are critical components of business plans, particularly for startups and private equity-backed ventures.
Common exit options include:
Acquisition by another company
Initial Public Offering (IPO)
Management Buyout (MBO)
Secondary sale to private investors or funds
Liquidation
An effective exit strategy aligns with business growth milestones, market conditions, and investor expectations.