exitstrategie

An exitstrategie, or exit strategy, is a planned approach for ending one's involvement in a business, project, or investment, with the aim of realizing a return on capital and limiting ongoing risk. It is typically developed alongside the initial business plan or investment thesis and updated as conditions change.

In corporate finance and venture capital, an exit strategy specifies when and how an investor expects to withdraw, including target return, time horizon, and criteria that trigger the exit. It helps align incentives among founders, management, and investors and informs governance and funding decisions.

Common exit routes include trade sale (sale to a strategic buyer), sale to a financial buyer (private equity or venture fund), initial public offering (IPO), management buyout (MBO) or management-led buyout, secondary sale to another investor, and liquidation or dissolution. Some strategies combine elements, such as a recapitalization or an earn-out.

Factors influencing the choice of exit route include market conditions, business performance, industry dynamics, tax considerations, regulatory constraints, and the liquidity needs and risk tolerance of stakeholders. Valuation, deal structure, and timing are central concerns in negotiations.

In real estate or project development, an exit strategy may involve sale at a target price, refinancing to pull out capital, or holding for continued cash flow before an eventual exit. A well-defined exit strategy supports risk management and capital allocation across investments.