7+ Exit PathwaysÂ
- Your Reference Guide
Most founders are only building toward one exit pathway without knowing it. Here are the seven most common routes — and what each one actually requires you to build toward.
| Exit Type | Full / Partial |
Profitability Required? |
Revenue Floor |
Key Unique Metric | Liquidity Speed |
|---|---|---|---|---|---|
|
Strategic M&A
|
Full | No (if IP compelling) | Flexible | Strategic fit / NRR | Fast (12–24 months) |
|
Technical M&A / Acqui-hire
|
Full | No | None | Team pedigree + IP defensibility | Fast (6–18 months) |
|
IPO
|
Full | No (but path required) | ÂŁ5M+ ARR, >40% growth |
Rule of 40 + governance maturity + TAM story | Slow (3–5 year build) |
|
PE Buyout
|
Full | Yes — near-term path essential | £2M+ ARR | Rule of 40 / EBITDA multiple | Fast once agreed |
|
MBO
|
Full | Yes — essential | Established | Debt serviceability (2–3x EBITDA cover) | Medium |
|
ESOP / EOT
|
Full | Yes — essential | Established + profitable | Governance maturity + employee engagement | Slow (paid out over years) |
|
Secondary Sale
|
Partial | No | Any stage | Cap table cleanliness / SHA terms | Fast (once buyer found) |
|
Strategic Partnership
|
Partial | No | Early OK | ROFR terms + strategic overlap metrics | Immediate but partial |
|
Voluntary Wind-down
|
Full | Yes — ideally profitable | Established | Liquidation waterfall + asset sale value | Founder-controlled timing |
|
Distressed Wind-down
|
Full | No — failed | N/A | Preference stack (determines if founder gets anything) | Forced / fast |
|
Stay Independent
|
Neither | Yes — eventually | Established | Sustainable unit economics + no VC pressure | No liquidity event |
If you want to map which of these fits your company specifically —
that’s exactly what we do inside Capital Catalyst.
Join the next cohort
that’s exactly what we do inside Capital Catalyst.
7+ Exit PathwaysÂ
- Your Reference Guide
Most founders are only building toward one exit pathway without knowing it. Here are the seven most common routes — and what each one actually requires you to build toward.
| Exit Type | Full / Partial | Profitability Required? | Revenue Floor | Key Unique Metric | Liquidity Speed |
|---|---|---|---|---|---|
Strategic M&A |
Full | No (if IP compelling) | Flexible | Strategic fit / NRR | Fast (12–24 months) |
Technical M&A / Acqui-hire |
Full | No | None | Team pedigree + IP defensibility | Fast (6–18 months) |
IPO |
Full | No (but path required) | £5M+ ARR, >40% growth | Rule of 40 + governance maturity + TAM story | Slow (3–5 year build) |
PE Buyout |
Full | Yes — near-term path essential | £2M+ ARR | Rule of 40 / EBITDA multiple | Fast once agreed |
MBO |
Full | Yes — essential | Established | Debt serviceability (2–3x EBITDA cover) | Medium |
ESOP / EOT |
Full | Yes — essential | Established + profitable | Governance maturity + employee engagement | Slow (paid out over years) |
Secondary Sale |
Partial | No | Any stage | Cap table cleanliness / SHA terms | Fast (once buyer found) |
Strategic Partnership |
Partial | No | Early OK | ROFR terms + strategic overlap metrics | Immediate but partial |
Voluntary Wind-down |
Full | Yes — ideally profitable | Established | Liquidation waterfall + asset sale value | Founder-controlled timing |
Distressed Wind-down |
Full | No — failed | N/A | Preference stack (determines if founder gets anything) | Forced / fast |
Stay Independent |
Neither | Yes — eventually | Established | Sustainable unit economics + no VC pressure | No liquidity event |
If you want to map which of these fits your company specifically —
that’s exactly what we do inside Capital Catalyst.
Apply for the June Cohort
that’s exactly what we do inside Capital Catalyst.
