Title: Describe various exit strategies.
Course: Entrepreneurship, Advanced (12053-II) > Section: Starting an Entrepreneurial Business

Description should include provisions for liquidating a business, such as

- taking out cash over time—retain ownership of the firm; no need to look for a buyer
- management buyout (MBO)—owner sells to managers
- employee stock ownership plan (ESOP)—provides retirement plan; partners sell stock and exit company
- mergers/acquisitions
- initial public offering (IPO)—selling stock.

Process/Skill Questions:

- What are the pros and cons of each exit strategy?
- What exit strategy would you set up for your business? Why?
- What are some short-term/long-term approaches to exit strategies?
- When should exit strategies be developed?
- What tax implications need to be considered in selecting the exit strategy?