Compare the ways a private investor can realise a holding and how each choice affects the value it achieves
The idea
A trade sale to a strategic buyer gives a full cash exit, often at a premium that reflects synergies. An IPO can achieve a high valuation, but it is costly and market-dependent, and lock-ups mean the sponsor usually sells down in stages. A secondary buyout to another sponsor is quick and certain, though the buyer may see less room for improvement. A recapitalisation returns cash while the sponsor keeps control, but it is a partial liquidity event, not an exit. Write-offs and liquidation are the failure case. Choose the route by weighing price, certainty, speed, the share sold and the effect on IRR. The trap: a dividend recap lifts IRR but adds leverage and default risk to the company.
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