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Exit strategy

The method used to realize an investment.


Exit strategies can include an IPO, recapitalization, merger, sale to another private group (secondary buyout), or sale to a strategic buyer.
The most common exit strategy for large portfolio companies tend to be IPOs. This is a result of the limited number of deep pocketed suitors that can afford multi-billion dollar acquisitions.
For smaller transactions, selling to a strategic buyer is often preferred as it can allow a full cash exit.