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.
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 ?
The semi-official Sudan Media Center (SMC) quoted a well- informed source at the Foreign Ministry as saying the visiting delegation has assessed the situation at areas where the Mission has withdrawn as well as areas implementing the third phase of the exit strategy.
"We have to work together with the Congolese on a path toward a gradual exit strategy."
She said government had observed that there had been a minimal graduation by those packaged from the programme hence development of an exit strategy to facilitate graduation of those that were successful.
The Sudan UN Envoy went to say that the developments of situations necessitate implementation of UNAMID exit strategy , which , he elaborated, means , in the first place, that the mission forces are to exist for task has been done.
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.
Your business has become successful and you're thinking about an exit strategy. Now you have so many more issues and risks to deal with, and some of the contingencies may be unmanageable.
An alternative exit strategy for owners of privately-held business trying to sell their business in this challenging market environment for business buyers is a sale to a newly created Employee Stock Ownership Plan (ESOP).
However, as the old saying goes, "We don't know what we don't know." Whatever vague or preconceived ideas we may have of how and when we might exit our business, the fact remains that there are many different options, exit paths, and potential values that should be explored in order to determine the most optimal exit strategy. We often find that what the business owner wants to do is in fact not compatible with the actual situation.
In Exit Strategy, contestants will be holed up in a spooky game chamber and forced to crack codes and solve puzzles in order to escape.
I can understand that when you are busy running a successful business, choosing a successor or thinking about an exit strategy is unlikely to seem a pressing matter.