Business Exit Strategy (An Entrepreneurship Concept)
Every entrepreneur who starts a new venture should think an exit strategy. A number of possible exit strategies are available for the business owner. Exits strategies include an initial public offering (IPO), private sale of stock, succession by a family member, merger with another company or liquidation of the company. An entrepreneur’s strategic plan to sell his or her investment in a company he or she founded. An exit strategy gives a business owner a way to reduce or eliminate his or her stake in the business and, if the business is successful, make a substantial profit. If the business is not successful, an exit strategy enables the entrepreneur to limit losses. Ideally, an entrepreneur will develop an exit strategy in the business plan, before actually going into business, because the choice of exit plan can influence business development choices. Common types of exit strategies include initial public offerings, strategic acquisitions and Liquidation. Which exit strategy an e...