Business Pitch Dictionary by pitch.dog
Exits, liquidity & investor returns · Working

Exit multiple

Also called: terminal multiple

ELI5

The multiple used to estimate sale value.

Used in conversation

“The exit multiple is lower in the downside case.”

Definition

A valuation multiple assumed or achieved at exit.

Here “Exit multiple” means: A valuation multiple assumed or achieved at exit.

Pitch context

You will see “Exit multiple” in fundraising decks, data rooms, term sheets and investor conversations when the discussion reaches exits, liquidity & investor returns.

Why it matters: In exits, liquidity & investor returns, a loose definition can change rights, obligations, approval, disclosure or enforceability.

Caution

Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.

Connected terms

Sources & evidence · 6

Direct term-level sources and supporting source families.