Exit value refers to the amount received by investors when they sell their stake. This typically occurs through a liquidity event such as an initial public offering (IPO), a merger, an acquisition or a buy-out.
For example, a private equity firm that paid $5 million for a majority stake in a logistics company achieves an exit value of $14 million when it sells the business to a strategic buyer three years later, generating a 2.8x return for its limited partners.
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