The method by which a venture capitalist or business owner intends to get out of an investment that he has made. In other words, the exit strategy is a way of “cashing out” an investment. Examples include an initial public offering (IPO) or being bought out by a larger player in the industry. (Source: InvestOpedia)
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An exit strategy is a means of leaving one's current situation, either after a predetermined objective has been achieved, or as a strategy to mitigate failure. An organisation or individual without an exit strategy may be in a quagmire. At worst, an exit strategy will save face; at best, an exit strategy will peg a withdrawal to the achievement of an objective worth more than the cost of continued involvement.