what exit strategies can investors use 
investors can capitalize on gains and reduce risk by using exit strategies such as the 1 rule a percentage based exit a time based exit or selling their equity stake in a business to other investors or family members investors typically set an exit strategy before entering into an investment as it helps to manage emotions and determine if there is a favorable risk return tradeoff the bottom lineexit strategy refers to how a business owner or investor will liquidate an asset once predetermined conditions have been met an exit plan helps to minimize potential losses and maximize profits by keeping emotions in check and setting quantifiable goals common exit strategies for startups include ipos strategic acquisitions and mbos more established companies often favor a merger or acquisition as an exit strategy but may also choose to go into liquidation or file for bankruptcy if becoming insolvent meanwhile investors can exit investments using strategies such as the 1 rule a percentage based exit a time based exit or selling their equity stake in a business 