Exits, liquidity & investor returns · Core

Exit value

Also called: terminal exit value

ELI5

What the company may be worth when investors sell.

Used in conversation

“The model tests several exit values.”

Definition

The value of a company or investment at a future sale, listing or other exit.

Here “Exit value” means: The value of a company or investment at a future sale, listing or other exit.

Pitch context

You will see “Exit value” 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.

Sources & evidence · 6

Direct term-level sources and supporting source families.