Diligence & Terms
Exit (M&A vs IPO)
Turning equity into cash via acquisition or IPO
What it is
An exit is the event where investors and founders finally turn their equity into cash or liquid stock. The two main routes are an M&A exit (the company is acquired by another company) and an IPO (the company sells shares to the public and lists on a stock exchange). M&A is far more common; IPOs are rarer and reserved for the largest companies.