In Business
See also: Barriers to exitIn entrepreneurship and strategic management an exit strategy, exit plan, or strategic withdrawal, is a way to transition one's ownership of a company or the operation of some part of the company. Entrepreneurs and investors devise ways of recouping the capital they have invested in a company. The most common strategy is the sale of equity to someone else through a trade sale.
Transition companies are professional mergers and acquisitions companies that assist Middle Market business owners with their exit strategy. Services offered are often referred to as Transition Management services.
From time to time, management may decide it is necessary to downsize its operations. This typically involves discontinuing less profitable brands, products, product lines, or operating divisions.
Other types of exit strategy are:
Management buyout or employee buyout (common in the manufacturing industry)
Read more about this topic: Exit Strategy
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