What is Exit Value in Accounting?

Exit value is the proceeds if an asset or business were to be sold. This estimated amount is considered to be most reliable if the proceeds are derived from an independent third party in an arm's length transaction where the sale is not rushed. Exit value is used in the determination of fair value for assets.

What is Exit Value in Finance?

Exit value also refers to the amount that a venture capital or private equity investor would realize from the sale of an investment, such as a business. This exit value usually arises from a liquidity event, such as from the sale of the business or by taking it public. The payout received from this event is considered the exit value for the investor.