Exit Plan

Term Main definition
Exit Plan

The goal of a founder or investor to terminate his, her or its relationship with the company and to monetize fully his, her, or its investment in the company. The exit may be a merger or a sale to another company. For a majority stockholder of a closely-held business entity, exits sometimes takes the form of a recapitalization (e.g., a transaction that leverages the balance sheet and pays dividends to and/or purchases securities from the majority stockholder). Reaching one's first successful exit is a significant milestone in entrepreneur's career.