exit strategy

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Related to Exit plan: lockdown, Exit strategy, escape artist

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
With Diego Garcia in trouble, Pakistan will be the only trump card in US President Donald Trump's hand for an Afghan exit plan whenever it materialises.
Ultimately, your exit plan is as unique as you are.
ALGIERS: Algeria's army appeared certain to secure the end of President Abdelaziz Bouteflika's 20-year rule after winning over his key allies, but the managed exit plan was rejected by protesters demanding the overthrow of the entire political elite.
'It is President Rodrigo Duterte's desperate exit plan to escape international public accountability for the crimes of which he is accused,' she added.
In a statement following Thursday's meeting, bank employees' union Etyk stressed that the exit plan "must be voluntary and that no pressure or blackmail should be brought to bear on the employees.
Bank of Japan (BOJ) governor Haruhiko Kuroda said the central bank would signal an exit plan if prices pick up.
Related: Creating a viable succession or exit plan for your insurance agency
Insuring for the loss of life is only a small part of utilizing insurance in an exit plan. However, many business owners fail to see the benefits of certain other forms of insurance.
While a succession plan is stock-based, an exit plan is asset based.
Participant 1 signalled his close relationship with his father who preferred him over his female siblings to be part of his exit plan. He also signalled to the comfort and trust his father felt in him to be his potential successor rather than selling the business of to an outsider.