FFI GLOSSARY

Expected Exit Value


Definition

The projected enterprise value of the company at the time of a future liquidity event, estimated using the financial projections maintained under the FFI Standard and valuation multiples appropriate to the company's projected financial metrics at the exit date. Expected exit value is an estimate, not a commitment, and must be derived from a documented financial forecast and documented multiple assumptions.

Common Misapplication

The most common misapplication is deriving expected exit value from a market opportunity assessment rather than from a financial projection and a valuation multiple. An exit value that is not connected to a financial projection cannot be assessed by a third party and does not satisfy the Standard.

FFI Standard Reference

This term is defined and applied in Book 4, Section 4.5: The Venture Capital Method.

Related Terms


Citable URL

This term may be cited using the following permanent URL.

https://ffistandard.org/glossary/expected-exit-value/

Full citation format: Founder Financial Infrastructure Standard, Beta v0.5, Glossary: Expected Exit Value. https://ffistandard.org/glossary/expected-exit-value/. 2026.

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