**Abstract**

For many business owners, strategies for operations are well thought out, whereas strategies for exit are not. Exiting a business does not need to occur due to a challenge or disaster. It is possible to plan and exit for the purposes of business growth, retirement, mergers and more. An exit affects the business owner, as it means that they are no longer involved in running or operations of the organization. The aim of this chapter is to identify common exit strategies and understand how they are of benefit to both the business owner or manager and the individual taking over the business. Secondary qualitative research is the research method used, with analysis of strategies and structures used across countries. These findings include differentiation between exit strategies with an understanding of their impact or influence on the business. These include the process of creating and exit strategy and the benefits for having one in place. The expectations of the investor and how they are to be paid back are taken into consideration. The chapter concludes with a solution for any business owner, including how to work with a qualified team to create a logical, well thought out exit plan.

**Keywords:** Exit Strategies, Business Owner, Investor, Next Generation Entrepreneurs, Succession

### **1. Introduction**

Business owners work hard to build up their businesses in a bid to attain success. They experience incredible excitement and enthusiasm to get a business going right from the start. However, business owners need to think about what would happen if they were no longer able to be part of the business [1]. Numerous circumstances may occur which drive a business owner to exit their business. Exiting a business is not always negative. For this reason, the exit strategy should be in place as part of the long-term plan for the business. This will ensure that any future exit is well planned for, with a smooth transition or continuity where necessary. Also, a business exit may be an excellent option for a business owner seeking to make a significant return on their investment.

Certain circumstances precede the need to exit a business. These include the following: -

• A non – profitable business could require the business to be closed down entirely, or the business owner could consider exiting and allowing the next generation with fresh ideas to run the business and lead it to success.


Other circumstances could precede an exit, with those mentioned above being the most recurrent.

The exit strategy is a plan more than a statement as several factors need consideration. They include clarity on the benefits of having the exit strategy in place, aligning the exit strategy with business goals and objectives, and determining the impact an exit will have on investors and successors. With a business exit strategy in place, it becomes clear what direction the business should take if or when a transition is necessary.
