Definition

Figuring out how much your company is worth based on earnings and assets. A clear number helps when seeking investors or selling the business.

What to consider

  • Plan your exit well in advance.
  • Consider all available exit options.
  • Ensure your strategy aligns with long-term goals.

Real world scenarios

  • An entrepreneur plans to sell his company after reaching specific revenue milestones.
  • A startup considers a merger with a larger firm as an exit option.
  • A small business outlines succession plans to transition ownership smoothly.

Related terms

Entrepreneurial Finances