Overview of Strategic Exits in Business

Brian Gibbs has spent over four decades as a business leader and financial executive throughout the San Diego, California, region. Since 2005, Brian Gibbs has served as president and CEO of Heritage Retirement Advisors, Inc. In this role, he assists high net worth clients in and around San Diego with various aspects of retirement planning, such as creating exit strategies for business owners.

In business, an exit strategy is a plan used by a business owner to sell their ownership of the company, either to another organization or to an outside investor. There are several potential benefits to creating a well-planned exit strategy, the most obvious being a handsome profit, assuming the business is profitable. An exit strategy can also help business owners transform their ownership stake to liquid funds without completely divesting from the company.

Unsuccessful businesses can also utilize exit strategies, typically with a focus on mitigating losses following the sale or closure of a business. Furthermore, venture capitalists and other investors can have their exit strategies in place to step away from an investment, either in a time of trouble or when the opportunity for profitability is at its highest.