ABSTRACT
Planning an exit strategy is one of the most misunderstood considerations of a business strategy, yet the exit strategy plays a crucial role in determining the strategic direction. An entrepreneur's exit is both a career choice as well as a liquidation of a financial investment. The chapter summarizes some of the common strategies envisioned by founders prior to approaching potential investors. W. D. Bygrave and J. Timmons help introduce this topic: "Just like farmers, venture capitalists seed, tend, and feed portfolio companies in the hopes of reaping a bountiful harvest." Business owners considering selling their business should consider ways of making their businesses marketable. Common to all exit strategies is the concept of a large financial reward for an earlier risky investment in the venture. As a possible exit strategy, owner-entrepreneurs may consider their senior team as potential buyers of their business. Management buyouts (MBO) present significant opportunities for business owners, financial sponsors, and entrepreneurial management.
