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It may involve using an present know-how or product in a distinct way than the company initially supposed. Eric Ries, a Silicon Valley entrepreneur who is credited with coining the term, describes it as “a change in technique with out a change in vision” in a video from Quick Company's series, The Pivot. An exit technique is the plan a business proprietor follows to achieve liquidity and gain a return on funding, according to the BDC.
It mainly involves the proprietor or investor selling some or all of their possession of the company. There are just a few totally different exit methods a business would possibly use. For instance, based on the StartupNation web site, a typical exit strategy is to promote the enterprise. A company may additionally choose to merge with one other one or have one other business purchase it out solely.
Some corporations would possibly just choose to shut down operations and promote, or “liquidate” all of their property. An alternative choice is to make an initial public offering (IPO), which entails selling the company on the inventory market. Key efficiency indicators help decide how effectively companies are performing when it comes to attaining certain strategic aims.
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