BNET Business Dictionary

Business Definition for: Exit Strategy

  • a plan for disposing of a business and realizing the value of the investment made in it. The development of an exit strategy involves establishing the value of the business, identifying and selecting exit options, identifying and removing obstacles, and preparing and implementing a plan. Exit options include the sale of the business, merger, flotation or public listing, management buy-out, franchising, family succession, ceasing to trade, or liquidation.

Additional Resources

Developing an Exit Strategy
With the economy on loose footing and the credit markets in turmoil, there has been little incentive for most business owners to consider selling their companies. The natural question for owners is: "what can be done to take full advantage of the expected improvement in valuations in 2009?" For owners...
Tags: Owner, Wyatt Matas & Associates, Strategy, Management
White papers 2008-08-01
The Fed's Exit Strategy: Local Lanes or Express?
Federal Reserve Chairman Ben Bernanke is delivering his semi-annual Humphrey-Hawkins testimony about the economy before the House Financial Services Committee today and he will repeat the performance before the Senate Banking Committee tomorrow. Investors and economists alike would like some indication that the emergency measures that the...
Tags: Strategy, Federal Reserve Board, Ben Bernanke, Currency & Foreign Exchange, Finance, Jill Schlesinger
Blog posts 2009-07-21
Bernanke's Exit Strategy: Be Careful of Inflation Complacency
Calafia Beach Pundit submits: As he laid it out in his op-ed in Tuesday's WSJ, the Fed's exit strategy looks sensible. I've argued that the exit strategy shouldn't be all that difficult. It should start when it is clear that the economy has come out of the woods (which...
Tags: US Market, Calafia Beach Pundit
External links 2009-07-23
Toward a QE Exit Strategy in the U.S.
Erwan Mahe submits:As the exit-strategy debate continues to pick up steam, we must be careful to distinguish between those entailing monetary and fiscal policies, because their relative priorities vary according to the economic zone.This phenomenon was on full display this past weekend at the G20 meeting. At the meeting, the...
Tags: US Market, Erwan Mahe
External links 2009-11-09
Entrepreneurship: How To Design Growth And Exit Strategy
This paper is based on a case study of an entrepreneurial start-up firm designing its growth and exit strategy. The paper discusses the wealth creation challenge a company faces once it has successfully opened shop. Specifically, the paper describes an entrepreneur's analysis of advantages and disadvantages of different growth models:...
Tags: Strategy, Entrepreneurial, Valuation, Entrepreneurship, Management
White papers 2006-02-08
US-led forces must speed up 'exit strategy' from Iraq : Musharraf
LONDON AFP — Pakistani President Pervez Musharraf said US-led multinational forces should hasten their departure from Iraq by training local troops more quickly. Musharraf, speaking in the House of Commons during an official visit to Britain, said training Iraqis would provide an "exit strategy" for the foreign troops. ...
Tags: Agence France-Presse, Iraq, Strategy, training, troop
Research articles 2004-12-07
Canadian Income Trusts: An Alternative Exit Strategy for US Portfolio Companies of Private Equity Sponsors
The global private equity industry over the last two years has been characterized by a lack of exit opportunities open to private equity firms. Canadian investment banking firms have been aggressively marketing the "Canadian Income Trust" structure to private equity firms as an alternative exit strategy for their US-based portfolio...
Tags: Strategy, Private Equity, Private Equity Company, Portfolio Company, Investment, Financial Services, Finance
White papers 2003-10-29
Business Planning - Plan Your Exit Strategy Before You Start
Starting a business is fun. It's a world of learning and discovery as you try to build something brand new from scratch and make it on your own two feet. Many people are so caught up in building their business that they don't really consider where they want it to...
Tags: Business Planning, Business, Bytestart, Operational Planning, Strategy, Business Operations, Management
White papers 2007-11-29
Republican political hopeful, rocked by sex scandal, mulls exit strategy
CHICAGO AFP ? A US Senate hopeful who hit the national headlines this week following revelations that he coerced his then-wife to have sex in public was reportedly poised to quit the race. The US media reported that pressure was building on Jack Ryan to step aside and that...
Tags: Agence France-Presse, MARKETING, millionaire, Republican, Ryan, Strategy, U.S. Senate
Research articles 2004-06-24
Blair hopes Iraq elections will give British exit strategy
LONDON AFP — British Prime Minister Tony Blair, who lost credibility for joining the US-led invasion to oust Saddam Hussein, may find Iraq's general elections offer him an exit strategy, analysts say. Iraq has haunted Blair for months. In the last few days, the trial of three British...
Tags: Agence France-Presse, Government, Iraq, London, SOFTWARE, Strategy
Research articles 2005-01-27
Don't talk of Iraq exit strategy: Rice
WASHINGTON AFP — US Secretary of State Condoleezza Rice predicted that Iraq's successful elections would trigger a new spirit of international cooperation to help the country but refused to speak of an "exit strategy." In an interview with AFP and Reuters news agencies two days before heading off for...
Tags: Agence France-Presse, Iraq, Strategy
Research articles 2005-02-01
Vote on Iraqi constitution key to US exit strategy
WASHINGTON AFP — The stakes for the United States are high in Saturday's constitutional referendum in Iraq with Washington seeking to lay the groundwork for an eventual exit strategy but fearing a possible political debacle. US officials have worked hard to secure passage of the charter to bolster the...
Tags: Agence France-Presse, Iraq, SECURITY, Strategy, Washington
Research articles 2005-10-11
Las Vegas-Based Mandalay Resort Group Says Stock Sale Is Not Exit Strategy.
By Rod Smith, Las Vegas Review-Journal Knight Ridder/Tribune Business News Oct. 4--Mandalay Resort Group released a statement Friday denying that Mike Ensign or Bill Richardson had any exit strategy for leaving the company. The Review-Journal reported Friday that Ensign, Mandalay...
Tags: casino, FINANCE, Investment, SALES, SEC, stock, strategy
Research articles 2003-10-04
TRC Selected for $14 Million Superfund Site Exit Strategy -R- Contract
Business/Technology Editors WINDSOR, Conn.--BUSINESS WIRE--Aug. 5, 2002 TRC Companies, Inc. TRC (NYSE:TRR) announced today that it has been selected by a group of industrial customers for the clean up of the Mattiace Petrochemical Superfund site located in Glen Cove, New York. The total value of the contract is...
Tags: Company, compliance, Construction, FINANCE, Government, Strategy, TRC Companies Inc., U.S. Environmental Protection Agency
Research articles 2002-08-05
FOMC Insight: Dollar Rallies on Lack of Exit Strategy Talk
Kathy Lien submits: The U.S. dollar has rallied sharply on the heels of the FOMC announcement despite the fact that the Federal Reserve made no major changes to their monetary policy statement. They kept interest rates unchanged and did not alter the size and scope of their...
Tags: US Market, Kathy Lien
External links 2009-06-24
Has the Fed's Exit Strategy Already Begun?
Bob Mcteer submits: Yesterday morning on financial TV, someone Larry Kudlow asked "Should the Fed begin its exit strategy?" Let me offer the view that it already has. The Fed's balance sheet ballooned last fall and peaked in December. Since then there has been no...
Tags: US Market, Bob McTeer
External links 2009-08-13
Analysis: The Fed's Rate Decision and Exit Strategy
Editor's Note: Economist Mark Thoma is guest-blogging for The Macro View this week. After its rate setting meeting today, the Fed announced that it "will maintain the target range for the federal funds rate at 0 to 1/4 percent," and that it "continues to anticipate that economic...
Tags: Strategy, Federal Reserve Board, Analysis, Currency & Foreign Exchange, Financial Planning, Financial Services, Finance, Mark Thoma
Blog posts 2009-09-23
Exit Strategy
Since he became NATO Secretary General this summer, Anders Fogh Rasmussen has been outlining an exit strategy for the International Security Assistance Force ISAF in Afghanistan. He repeated it at the end of a two-day informal meeting of NATO defense ministers which ended today in Bratislava, Slovakia: "the only way...
Tags: NATO
News items 2009-10-23
Toward an Exit Strategy for the Federal Reserve
John M. Mason submits: Interest continues to grow about how the Federal Reserve is going to remove all of the reserves that it has injected into the banking system. The articles are getting personal now. See, for example, the article in the Wall Street Journal Tuesday morning that actually...
Tags: US Market, John M. Mason, American International Group Inc.
External links 2009-11-03
Building Business Value Now for Successful Exit Later
"Managing a growing and thriving business can require 60-hour weeks. The day to day events can consume even the best-organized CEOs. As a result, the establishment of an exit strategy is often postponed. Business owners inherently believe there is plenty of time later to firm up an exit strategy. ...
Tags: Shoreline Communications, Strategy, Management
White papers 2002-02-25