Small Business Dictionary

Exit Strategy

An Exit Strategy is a planned sale or opportunity to cash out of a past or ongoing investment, typically a start-up company. Timing an Exit Strategy is of critical importance, such as during an Initial Public Offering (IPO), being bought out by a competitor, or selling to a conglomerate. An Exit Strategy can also be used to anticipate worst case scenarios, such as how you might cancel a new customer loyalty program or leave a new market, and should consider Barriers to Exit.