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Developing an Exit Strategy for Your Business

Prioritize the various exit strategies and explain the order you established. Then, discuss at what point in the business each strategy should be executed along with your rationale. Discuss which one would be the most challenging to execute and why.

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Exit Strategies

An exit strategy is vital in any business model when the operation of the business is no longer prosperous to the business model itself. The best way to get out of a business will vary by the type of business it is as well as the specific challenges that business is currently facing. Exiting a business does not mean failure but is rather an opportunity to grow. Appropriate uses of an exit strategy may be when the business model is at capacity and must restructure in order to grow; it may also be used to generate liquid assets needed to invest elsewhere. Each strategy has it's own set of challenges. There are four major types of exit strategies listed below listed in order of most challenging to least.

Merger or Acquisition: This happens when one organization is merged into another. The smaller organization generally receives an upfront lump sum and the upper level executives have the opportunity to decide on being a part of the newer organization or moving on to another venture. Normally the larger organization will take over the operations of the smaller organization and the lower level staff will stay on board. The remaining staff will most likely need to adjust to integrate into a new company culture. The owner or CEO of the smaller company may take a role within the larger organization as well. For ...

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The expert develops an exit strategy for businesses.