Maximizing Valuation through Exit Strategies

XYZ Capital, a private equity firm, recently invested in a technology startup, Tech Innovations Inc. The company has shown significant growth potential and is generating considerable buzz in the industry. As part of its exit strategy, XYZ Capital is evaluating its options to maximize returns from its investment. The firm is considering three strategies: a strategic sale to a larger technology company, an initial public offering (IPO), and a secondary buyout by another private equity firm. Each option has its own implications for how XYZ Capital might realize its investment's value.

Which of the following exit strategies would likely yield the highest valuation for Tech Innovations Inc. if executed under optimal market conditions?