When Are Exit Strategies Used?
- Close down a non-profitable business.
- Execute an investment or business venture when profit objectives are met.
- Close down a business in the event of a significant change in market conditions.
- Sell an investment or a company.
- Sell an unsuccessful company to limit losses.
When should you exit an investment stock?
When you find a stock that has better fundamentals than the one you are holding on to now, it is a good time to exit the stock. This also means that the company is doing better and coming up with better products or services that can grab better opportunities.
How long should you leave your investments?
Generally, investing should be for the long term – that's 5 years or more. This is because the value of investments goes up and down, but over a longer period of time there's potential to see growth above inflation.
What is a good exit strategy for investors?
Common types of exit strategies include initial public offerings (IPO), strategic acquisitions, and management buy-outs (MBO).