exit strategy

Definition

The way in which an investor plans to close out an investment. For example, a venture capitalist or angel investor may look to an IPO or acquisition as his/her exit strategy. also called liquidity event.

Use exit strategy in a sentence

You may want to have a good exit strategy thought up so that you can get out when the time is right.

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We got into a lot of trouble when we did not have an exit strategy for our retirement investments, and lost a lot more money than we though we were going to.

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Bill was very disappointed with the way his career was progressing at his current job. He decided to update his resume as he planned a very thorough exit strategy.

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