what is an exit strategy?

Question

Exit strategy for a business

Answer 1

It's the opposite to a roll out.

Answer 2

this is either planned at the stage where a business plan is formed (yes before the company is even made) as a way to set the length of business operational time, sometimes this will change, but it is a way to determine how they will get out of the market should they need to.

i.e. how they will lay off staff without incurring penalties, how they will settle their debts, how they will sell stock etc. It will include a strategy and also usually a time plan of how long it will take.

Alternatively exit strategies can be planned IF the business is in trouble, but generally any business worth its weight in peanuts should have an exit strategy to avoid losses at the last hurdle.

Answer 3

An exit strategy is the predefined route for the founder of a company ( or new owner) to sell their interest in a successful business for the optimum amount.

People will only buy a business if they see it adding value to them as the purchaser.

If you plan to sell a failing business that is not an exit strategy that is a damage limitation strategy and is something completely different. Most people don't take their responsibilities in running a business seriously its all about duty to the shareholders whether its a one man company who owns all the shares or a large public company same rules apply.

Answer 4

Due to various reason a business has to be closed down. To name few, succession problem, bad performance etc. Though exit strategy can be made any time of the business, making this strategy at the planning stage of the business itself makes a businessman - brilliant.

Answer 5

An exit strategy is simply put, a strategy to leave.....

So here is an example.....

An exit strategy for a large firm in a particular sector, would be to stop selling that product, do a life time build to cover warranty and ongoing sales, and to sell the factories in that sector........

Answer 6

Exit Strategy is used when any business deal is looking to fail.
This is like a back up and is a way to save yourself from further financial and business losses through the failure of the deal to go through.
Its a bit like when you hear people say,"on to plan b"and is really a safety net (a safe way out of a deal) I hope this helps.

Answer 7

An exit stratgey is the plan for the existing managers to become less involved in their business usually by the sale of the business

Answer 8

It's when your female co worker's husband suddenly comes home while your caught up in bed with her ...then comes the exit strategy!

Answer 9

Think about Tony Blair's long goodbye and you have your answer. When it looks like the proverbial is about to hit the fan, you need to make plans to get out!

Answer 10

Probably better known as plan B. ie. a way of undoing what you did if you made a mistake.