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1 year, 3 months ago via ask.inc.com

What is an exit strategy?

I was told to come up with an exit strategy along with a business proposal. What exactly is an exit strategy. What should it include? How would I write one up? Why would I need one fro my business proposal? Any help you can throw this way is appreciated.
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Lianne J | 5 months, 2 weeks ago
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According to Wikipedia, exit strategy is leaving one's present situation either after a predetermined objective has been achieved or as a strategy to avert failure. A company or an organization who don't have an exit strategy is in a quagmire.
In business, an exit strategy is a way to transfer ownership of a company. Businessmen look for ways to be able to get their capital that they have invested in the company. The most common type of strategy is the sale of equity to other individual through a trade sale. There are some companies called, transition companies who are professional in mergers and acquisitions that helps Middle Market business owners with their exit strategy. Their services are often called Transition Management services.
Other types of strategy are management buyout or employee buyout.

Source:
http://en.wikipedia.org/wiki/Exit_strategy

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iklilian | 1 year, 2 months ago
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Hi @buckets, an exit strategy is a business method whereby a business owner or venture capitalist tries to get out of an investment or a financial situation after he or she has achieved a certain objective. An exit strategy is also called an exit plan or a strategic withdrawal.

Every business need to have an exit strategy in place. Most company devise several methods of recouping the money they have invested , which includes methods like selling of equity to through a trade sale to a different person.

This might sound so easy but only if the company involved is publicly traded on a stock exchange. But it becomes more difficult if the company or business is private . This is because a the shares of a private company cannot be sold so easily. So a perfect exit strategy for such a business will be to find a way that it can be able to trade its shares for cash.

Sources :
http://www.investorwords.com/1836/exit_strategy.html
http://www.investopedia.com/terms/e/exitstrategy.asp

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