Exit Strategy

Knowledge Center

Description of Exit Strategy. Explanation.

Definition Exit Strategy. Description.

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.

Special Interest Group - Exit Strategy Special Interest Group (9 members)

Forum - Exit Strategy   Here you will find interesting and educational discussions.   Quotes on Exit Strategies and Strategic Withdrawing. Quotations Hi, do you know of a remarkable, humorous quote by a famous ...

Best Practices - Exit Strategy Here you will find the most valuable ideas.

Expert Tips - Exit Strategy Here you will find high-quality advice from experts.

Resources - Exit Strategy Here you will find powerpoint presentations, micro-learning videos and further information sources.   News about Exit Strategy         Videos about Exit Strategy         Presentations about Exit Strategy         Books about Exit Strategy         More about Exit Strategy

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

Return to Management Hub: Finance & Investing  |  Strategy

More on Management  |  Return to Management Dictionary  | 

This ends our Exit Strategy summary and forum.