What are the different exit mechanisms for Private equity?

Business & Management
1

Private equities can exit a firm in the following ways :

  1. Taking the company public by generating the IPO.
  2. Strategic sale.
  3. Buy back.
  4. Liquidation.
2

Private equity investors usually have an investment horizon of 5-7 years and plan to exit after that after making a substantial profit on their investment. There are many exit strategies that private equity investors can use to offload their investment. The main options are discussed below:

  • Initial Public Offer (IPO)

  • Strategic Acquisition

  • Secondary Sale

  • Repurchase by the Promoters

  • Liquidation