Glossary
Exit
The event through which the owners of a business realise the value of their shareholding, most often by selling the company.
In plain English
For founders, an exit is usually a sale to a trade buyer or an investor backed group, sometimes a management buyout and occasionally a listing. For investors, it is the sale of their stake, whether to a buyer of the whole company or to another investor.
An exit can be full, with the founders leaving after a transition, or partial, with the founders keeping a stake and a role.
Why it matters
Knowing what kind of exit you want, and when, shapes every decision in the years before it. Buyers and investors will ask about it early.
What to watch for
- Be clear about timing, your future role and the certainty you need.
- Investors joining the business will have their own exit expectations, which should match yours.
- Preparation starts well before the exit itself.
Transaction language and legal treatment depend on the agreement and the jurisdiction. Written by Motion Advisory Partners as general guidance, not legal advice.