exit strategy

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Exit Strategy

1. In entrepreneurship and venture capital, a plan to end one's involvement with a business or investment while making the greatest possible profit (or smallest possible loss). An exit strategy is designed to turn an illiquid asset into liquid cash for the investor. The most straightforward exit strategy is simply selling one's business. If this is impossible, difficult, or unprofitable, another example is discounting one's products to sell as much as possible in as short a time as possible, as in a going-out-of-business sale.

2. In trade, a plan to close a position at a certain point. For instance, a trader may make a stop-loss order in order to close an unprofitable position.

exit strategy

The method by which an investor plans to cash out of an investment. For example, a venture capitalist may intend to utilize an initial public offering to liquidate an investment in a closely held company.
References in periodicals archive ?
Before you buy, establish at least two exit strategies so that you aren't left with an asset that you can't get the value out of when you need to and that also could continue to cost you money each month.
But "preparing exit strategies cannot be put off," the OECD said.
In a statement, the bank said, 'The Bank of Israel's experience suggests that the exit strategies can be smoother than expected and market-positive when they come as normalization of monetary policy that confirms a recovering healthy economy.
It looked into various aspects of the exit strategies process, including how owners are planning to exit their businesses and their post exit strategies, which showed that 51% of business owners do not have a wealth strategy in place when planning to exit their businesses.
It is aimed at companies that need to develop exit routes as well as the advisory community specialising in exit strategies.
If you decide to team up with an investment banker who specializes in exit strategies, pick one with in-house expertise in organizing initial public offerings (IPOs), mergers and acquisitions, corporate finance and consulting.
Mr Hodgkins said: "There will be many varying reasons for the failure to exit but it is evident that increasingly the venture capitalists will be looking for new exit strategies in order for them to realise their investments and to make the appropriate r eturns to their investors.
A comprehensive overview of being acquired versus a merger, reverse-merger, IPO, and other potential exit strategies, including a detailed look at the financial and legal sides of each strategy and how they would impact management, employees, and investors/shareholders
Concluding a two-day meeting in the Italian city of Lecce, ministers said that although the global economy is still weak, so-called exit strategies from stimulus measures such as tax cuts and lower interest rates are "essential to promote a sustainable recovery over the long term".
Sarbanes-Oxley Section 404-related costs have had a chilling effect on companies wanting to go public via initial public offerings (IPOs), so exit strategies depend increasingly on the mergers and acquisitions market.
For further information about exit strategies for businesses, call Sian Elvis at Leo Abse & Cohen on freephone 0500 125 472.
That increased demand provides an owner with the ability to tailor individual exit strategies.