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.