How to Write an Exit Strategy for a Business Plan
Investors want to know how they'll get their money back (and then some). Here's how to present credible exit scenarios.
An exit strategy isn't about giving up—it's about showing investors you understand how they'll eventually realize returns on their investment. Most investors have a 5-10 year time horizon and need to know there's a clear path to liquidity.
Common Exit Paths
Acquisition (Most Common)
90%+ of successful startups exit through acquisition. Identify potential acquirers in your industry.
Strategic Acquirers
Companies that would benefit from your technology, customers, or talent
Financial Acquirers
Private equity firms looking for profitable, scalable businesses
IPO (Initial Public Offering)
Going public is rare but viable for high-growth companies:
- • Typically requires $100M+ in ARR and 40%+ YoY growth
- • 7-10 year timeline from founding to IPO on average
- • Provides liquidity while allowing continued growth
Valuation Scenarios & Timeline
Conservative Case (Year 5)
Projected ARR
$12M
Exit Multiple
6x ARR
Exit Valuation
$72M
Base Case (Year 5)
Projected ARR
$18M
Exit Multiple
8x ARR
Exit Valuation
$144M
Build a Credible Exit Strategy
PlanAI Pro helps you research comparable exits, model valuation scenarios, and identify strategic acquirers in your market.
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