Browse Definitions:
Definition

exit strategy

Contributor(s): Ivy Wigmore

An exit strategy is a planned approach to terminating a situation in a way that will maximize benefit and/or minimize damage.

The idea of having a strategic approach can be applied to exiting any type of situation but the term is most often used in a business context in reference to partnerships, investments or jobs.

Understanding the most graceful exit strategy for establishing partnerships should be part of due diligence and vetting potential suppliers and service providers. In cloud services, for example, termination or early-withdrawal fees, cancellation notification and data extraction are just a few of the factors to be considered.

An entrepreneur's plan for exiting a startup might include selling the company at a profit or running the business as long as the return on investment (ROI) is attractive and simply terminating it when that ceases to be the case. In the stock market, an exit strategy might include a stop-loss order that instigates a sale when the value of a stock drops below a specified price.

In an employment context, exit strategies are becoming increasingly important not just for corporate executives but for all employees. People change jobs much more frequently than they did in the past, whether voluntarily or involuntarily through firing, downsizing or outsourcing. An employee's exit strategy might include negotiating a severance agreement,, updating a resume, maintaining lists of potentially helpful contacts and saving enough money to cover a period of unemployment.

No matter what the context, creating an exit strategy should be an important part of any contingency plan and risk management strategy.

See also: supplier risk management

This was last updated in December 2014

Continue Reading About exit strategy

Start the conversation

Send me notifications when other members comment.

By submitting you agree to receive email from TechTarget and its partners. If you reside outside of the United States, you consent to having your personal data transferred to and processed in the United States. Privacy

Please create a username to comment.

-ADS BY GOOGLE

File Extensions and File Formats

Powered by:

SearchCompliance

SearchSecurity

  • black hat

    Black hat refers to a hacker who breaks into a computer system or network with malicious intent.

  • copyright

    Copyright is a legal term describing ownership of control of the rights to the use and distribution of certain works of creative ...

  • keylogger (keystroke logger or system monitor)

    A keylogger, sometimes called a keystroke logger or system monitor, is a type of surveillance technology used to monitor and ...

SearchHealthIT

  • population health management (PHM)

    Population health management (PHM) is a discipline within the healthcare industry that studies and facilitates care delivery ...

  • ICD-10-PCS

    The International Classification of Diseases, 10th Revision, Procedure Coding System (ICD-10-PCS) is a U.S. cataloging system for...

  • U.S. National Library of Medicine (NLM)

    The U.S. National Library of Medicine (NLM) is the largest biomedical library in the world.

SearchDisasterRecovery

  • business continuity plan (BCP)

    A business continuity plan (BCP) is a document that consists of the critical information an organization needs to continue ...

  • call tree

    A call tree -- sometimes referred to as a phone tree -- is a telecommunications chain for notifying specific individuals of an ...

  • mass notification system (MNS)

    A mass notification system is a platform that sends one-way messages to inform employees and the public of an emergency.

SearchStorage

  • hybrid hard drive (HHD)

    A hybrid hard drive (HHD), sometimes known as a solid-state hybrid drive (SSHD), is a mass storage device that combines a ...

  • USB flash drive

    A USB flash drive -- also known as a stick, thumb or pen drive -- is a plug-and-play portable storage device that uses flash ...

  • open source storage

    Open source storage is data storage software developed in a public, collaborative manner that permits the free use, distribution ...

SearchSolidStateStorage

  • RRAM or ReRAM (resistive RAM)

    RRAM or ReRAM (resistive random access memory) is a form of nonvolatile storage that operates by changing the resistance of a ...

  • JEDEC

    JEDEC is a global industry group that develops open standards for microelectronics.

  • M.2 SSD

    An M.2 SSD is a solid-state drive (SSD) that conforms to a computer industry specification written for internally mounted storage...

SearchCloudStorage

  • RESTful API

    A RESTful application program interface breaks down a transaction to create a series of small modules, each of which addresses an...

  • cloud storage infrastructure

    Cloud storage infrastructure is the hardware and software framework that supports the computing requirements of a private or ...

  • Zadara VPSA and ZIOS

    Zadara Storage provides block, file or object storage with varying levels of compute and capacity through its ZIOS and VPSA ...

Close