An "Exit Strategy" is a plan that outlines how an individual or business intends to leave a particular investment or situation. This strategy is crucial for minimizing losses and maximizing profits when selling assets, such as stocks or a business. It helps investors and entrepreneurs prepare for various scenarios, ensuring they can make informed decisions when the time comes to exit. Common types of exit strategies include selling to a third party, merging with another company, or going public through an Initial Public Offering (IPO). Having a clear exit strategy allows stakeholders to set goals and timelines, making it easier to navigate the complexities of leaving a venture.