What Is an Exit Valuation

question 16

Multiple Choice

What is an exit valuation?

• A) Value of the business at the time of exit, IPO or acquisition
• B) Value of the business after your 5 year projections
• C) The industry average value of companies in your industry of the same age
• D) The amount of money investors are willing to invest

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Definitions:

Equity Theory

A theory in social psychology that explains how individuals perceive and react to fairness or unfairness in distribution of resources within their interpersonal relationships.

Job Security

The assurance or probability that an individual will keep their job without the risk of becoming unemployed.

Equity Theory

A theory of motivation that suggests individuals assess their job satisfaction based on the ratio of inputs to outcomes, compared to others.

Market Price

The price at which an item or service is traded in the competitive marketplace.