exit strategy


Also found in: Dictionary, Wikipedia.

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 ?
Economists are divided on the ideal exit strategy for Bank of Japan from ultra-loose monetary policy, according to Reuters.
This is an excellent opportunity to learn from the pros how to start the process of considering the financial plan for yourself and your business, determining how to develop your exit strategy and/or succession plans and determining the value of your business.
Four critical steps will make planning your exit strategy a lot smoother:
A tripartite team including the Sudanese government, African Union (AU) and United Nations (UN) has been set up in February 2015 to develop an exit strategy for the UNAMID from Darfur.
In a survey of spa entrepreneurs conducted by InSPAration Management, 90% of spa owners have not even thought about planning for an exit strategy.
Exit Strategy will also be linked to an interactive app, Reptile Resistance, that explores the storyline in more detail, inviting users to complete brainteasing challenges to help defeat the lizards.
A financial reward-based exit strategy is a strategy based upon the highest potential returns to the owners (Babich & Sobel, 2004; DeTienne et al.
The opposition politician has previously said that he would engage in diaologue with representatives of the Syrian government but has not metioned an Assad exit strategy before.
Crafting an exit strategy should be a priority before a business progresses from the start-up stage.
A document published on the Government's website states: "The Minister for Local Government & Communities [Carl Sargeant] has agreed to award a maximum of PS564,271 exit strategy funding for 12 areas.
While SocGen's exposure to Greece is at the low end of the French banks - especially compared with Credit Agricole , owner of Geniki's larger rival Emporiki - analysts quoted SocGen CFO Bertrand Badre as saying that the bank was "as busy as" Credit Agricole in looking for an exit strategy.
You need to plan your exit strategy with any property deal before you commit to it.