• A business exit strategy is a plan that a business founder or owner draws up to sell their company or stake in a company to other investors or other firms.
  • Initial public offerings (IPOs), strategic acquisitions and management buyouts are some of the most common exit strategies an owner can use.
  • If the business is profitable, an exit strategy allows the business owner to reduce their stake or exit the business entirely while making a profit.
  • If the business is struggling, implementing an exit strategy or “exit plan” can allow the entrepreneur to limit losses.