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What Is a Business Exit Strategy? Learn something new every day More Info… by email A business exit strategy is a plan that outlines the steps necessary for current owners to remove themselves from association with the company. Strategies of this type are usually developed in advance, depending on the long-term goals of the owners. In many instances, the plans can be adapted to deal with situations where exiting from the business becomes prudent due to unforeseen circumstances, including a loss of demand for the goods and services produced or some other factor that requires a shutdown of the business. Owners develop a business exit strategy based on what they hope to ultimately derive from the business. In some cases, companies are established for the express purpose of creating an entity that will be attractive to larger competitors and sold at a profit within two to five years. At other times, a company may be created and developed as a means of providing a source of ...

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