The term "exit" refers to the strategy used by founders, investors or owners to sell or reduce their stake in a company, typically through a sale, merger, takeover or initial public offering (IPO).
Glossary
What is EXIST, and what role does the programme play for start-ups originating from the academic sector?
EXIST is a funding programme of the German federal government that aims to support innovative start-up projects from the world of science.
What is an Employee Stock Ownership Plan (ESOP) and why is it important?
An Employee Stock Ownership Plan (ESOP) is an employee share ownership programme that offers employees the opportunity to acquire shares in the company, often at discounted conditions.
What is an entrepreneur, and what role do they play in the economic system?
An entrepreneur is a person who founds a company, takes risks and develops innovative solutions to bring new products or services to the market.
What is an elevator pitch and what is it used for?
The elevator pitch is a short, concise presentation that aims to convey the essence of a startup or business concept within the time span of a lift ride, typically in 30 to 60 seconds.
What is equity and why is it important for businesses?
Equity refers to the funds that belong to the owners of a company or start-up and result from the difference between assets and liabilities.
What is the EBIT multiple and how is it used in company valuation?
The EBIT multiple is a key figure for company valuation that represents the ratio of the company value to operating earnings before interest and taxes (EBIT).
What is an earn-out, and how does this arrangement work in company sales?
An earn-out is an agreement in the context of company takeovers in which part of the purchase price is linked to the achievement of certain future performance targets of the acquired company.
What does ‘early stage’ mean for a start-up?
Early-stage refers to the initial stage in the life cycle of a start-up, in which the main focus is on product development, market research and the initial validation of the business model.