Exit Strategy Definition

An exit strategy is a plan for how a business will end its relationship with a customer, investor, or employees. The purpose of an exit strategy is to help the business owner or manager to know when it is time to move on from a particular situation.

There are three main types of exit strategy:

1. divestment, which is when the business sells off its assets related to the customer, investor, or employees;

2. liquidation, which is when the business shuts down completely; and

3. management buyout, which is when the managers of the company buy it from the current owners.

The most important part of an exit strategy is deciding when to implement it. This can be difficult to determine, as there are many factors to consider. Some common indicators that it may be time to implement an exit strategy include:

-The market for the product or service has changed significantly; -The company is no longer profitable; -The company has too much debt; -The company is no longer growing; -Employee morale is low; -customer satisfaction is low; -There has been a change in ownership or management.

If any of these indicators are present, it may be time to consider an exit strategy. However, each situation is unique, so it is important to consult with experts before making any decisions.