Exit Strategy

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What is an Exit Strategy?

A Exit Strategy is a strategic withdrawal of a corporation out of a typically declining or not very profitable market, brand, product, product line, or entire company.

Also it can be used to describe the method by which Venture Capitalists or a business owner intends to get out of a business / investment that he or she has created / made in the past. For example via an Initial Public Offering or selling their businesses to individuals or other companies.

Exit Barriers

All the factors that make it difficult for a company to end loss-making business activities. Exit barriers may include the following:

1. Social factors: required procedures regarding layoffs and the resistance of employees who are in danger of losing their jobs present very important exit barriers.
2. Strongly specialized assets: the liquidation value of a strongly specialized machine is often significantly lover than the utility value.
3. Connection of a product to one or more other products: for example through the collective use of means of production (a building or a machine).
4. Emotional factors: such as attachment to a certain product by the owner or management.
5. Government support: support for companies in trouble may present an exit barrier.

Forum Start a new topic about Exit Strategy Write here. Ask a question or explain something. Forum about Exit Strategy. Strategic Retreat In the face of evolving circumstances and/or challenging transitions, a Strategic Retreat (STRATR) can be a sensible and even powerful move for organizations and individuals seeking to adapt, refocus,... 13   9 comments 🔥 Shareholder Exit? How to Handle an Equity Withdrawal Dispute When collaborating on business ventures with friends, family, or partners, disputes may arise if a shareholder seeks to exit and encounters resistance, making a three-step framework for reclaiming inv... 4   Quotes on Exit Strategies and Strategic Withdrawing. Quotations Hi, do you know of a remarkable, humorous quote by a famous person or a proverb related to strategic withdrawing and/or exit strategies?Please enter a reaction to share it for other people to enjoy! ... 2

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Compare with: Harvest Strategy  |  Disaggregation  |  Turnaround Management  |  Spin-Off  |  Divestiture  |  Abandonment Value  |  Liquidation Value  |  Start-up Company  |  Outsourcing  |  Restructuring  |  Downsizing  |  Leveraged Buy-Out  |  Management Buy-Out

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