Investor exit route

Exit routes can include a sale to another investor, trade sale, public flotation, buyback or eventual liquidation. Availability, timing, control, legal restrictions, liquidity, transaction costs and valuation affect what an investor can actually realise. Venture-capital investors often plan exits, but the concept is broader than venture capital. An announced exit intention does not create a buyer or guarantee the forecast price. A company’s divestment of a business and an individual investor’s sale of shares can also have different consequences for the company’s cash and stakeholders.