An exit event is a strategic transition where a company’s founders and investors sell their ownership stakes to realize a financial return.
Quick Reference:
Exit Event. Liquidity Milestone. Cashing Out.
Expanded Definition:
An exit event is the ultimate goal for most equity investors, as it provides the “liquidity” needed to turn paper shares into cash. The most common exit events are an Initial Public Offering (IPO), where the company lists on a public exchange like the ASX, or a Trade Sale (M&A), where the business is acquired by a larger corporation. Without an exit event, investors in private companies may have to hold their shares indefinitely without any way to sell them for a profit.