Exit Strategy

December 11, 2013  |     |     |   0 Comment

An exit strategy in investing refers to the manner in which an investor cashes out his investment in a business.

Venture capitals tend to prefer to take a privately-help business public via an IPO in order to create liquidity and sell their shares in the public financial markets. However, a private sale is also possible.

In website transactions, the entrepreneur may acquire a website, improve its cash-flow, and sell it to another website investor. This is a common exit strategy for website investors.

Author: 

Kris Tabetando provides mergers & acquisitions (M&A) advisory and brokerage services to Internet companies. He also partners with investors to acquire & manage Internet businesses.

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