In the context of private equity investments, exit strategies are critical for investors to realize returns on their investments. The three primary exit strategies include an initial public offering (IPO), a strategic sale, and a secondary buyout. Each of these strategies has its own advantages and considerations.
Imagine a private equity firm that has held an investment in a successful technology startup for several years. The firm is now considering how to exit the investment at a time when the market for technology stocks is particularly favorable.
Please select the most appropriate exit strategy for this scenario.