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Exit strategies deal with how new venture management restructures business assets for enhanced value through divestitures. Economic and political factors influence the reasons for exit. The following economic and political factors determine both companies' decisions to exit and the types of exit that managers choose.

Underperformance at the company or the business level contributes to economic reasons for exit. A venture's poor performance may come from a failed diversification strategy. Exit from the poorly performing business then consolidates operations and reduces costs. Financially distressed companies are more likely to sell off a failing business to external buyers than spin it off to current stockholders, thereby generating liquidity and meeting short-term financial obligations.

Companies may also exit countries or businesses for political reasons, such as protests from stakeholders. ...

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