Words / E / Business

exit multiple

noun

C2CEFR level
85/100Rarity: very rare
TechnicalRegister

The valuation multiple at which an investor assumes a business will be sold, used both to calculate terminal value and to model buyout returns.

Even holding the exit multiple flat to entry, deleveraging alone drives a solid return for the sponsor.

Topic: Corporate finance in Business English

Rarity runs from 0 (a word everyone knows) to 100 (almost never seen outside specialist or literary writing). Level is the word's real difficulty on the CEFR scale, from A1 to C2.

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More business words: Corporate finance