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Business Exit Strategies

The exit strategy is most often consider! from the point of view of growth, moving forward. But what to do if the road has end!? Or there are no more resources for development? There may still be evil bandits and other troubles ahead.

It is also known that the higher the spe! and mass of the moving object, the more difficult it is not only to turn around, but even to slow down.

It is very important to note that exit strategies are not simply solutions within the framework of a pessimistic scenario in the format of a standard SWOT analysis.

I will give typical exit strategies in Russian reality.

Comprehensive exit plans are at the corporate level of strategy and are design! to ensure the liquidity of the business as a whole.

Western options for exiting a business are implement! mainly in the format of a sale to a sms gateway slovenia strategic or financial investor on the over-the-counter market or, already in the status of a public company, on the stock exchange.

In Russian reality, everything looks somewhat different. And it is not only that venture business exit strategies financing and stock market institutions are extremely poorly represent! in the Russian economy.

Business owners who are preoccupi! with ensuring the growth or survival of their business in the face of various black swans do not systematically engage in exit strategies. The basic scenario of the strategy is usually one, and it is optimistic!

Basic options of a positive nature : sell the business to a strategic investor; withdraw money from the company to a safe location.

Basic negative options : make mistakes and go bankrupt; get caught in the crossfire when a australia data strong player consolidates the market.

Attention owners!

The main goals of developing an exit strategy are: to maximize the value of the business in the event of its sale (maximum program); to withdraw equity capital from the company (minimum program).
The relevance of the topic of exiting a business is determin! by the degree of uncertainty in the external environment and the level of risks for a particular business .
Exit strategies are work! out in advance and are waiting for their moment. Spontaneity in this case is completely inappropriate.

Let’s try to structure the main situations that determine the ne! and methods for implementing an exit strategy:

An option for reformatting a business portfolio

The company operates in several markets. We develop a corporate strategy, forming a balanc! portfolio of businesses. For example, wholesale, retail, real estate. As market trends change, we can use the opportunity to change the balance of the portfolio according to the VCG matrix. We transfer resources from the “dog” business to “stars”, using the resources of the “cash cow”. Then we look for new business ideas.

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