Exit Strategy
An exit strategy is a planned approach for liquidating an investment or exiting a business venture. It outlines the method by which an investor or business owner intends to realize returns, whether through sale, merger, or public offering. Effective exit strategies are critical for maximizing value and minimizing risks associated with the investment.
Key Takeaways
- Exit strategies outline plans to exit investments or ventures.
- Essential for maximizing returns.
- Minimizes risks and uncertainties.
- Common in startups and private equity.