Important Exit or Harvesting Strategies to Account in Business

Exit or Harvesting Strategies
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Exit or Harvesting Strategies
The business I developed a model for in Week 6 is Peak Motors Automotive Company, located in California: the company will specialize in producing stylish and affordable vehicles of excellent efficiency and safety. Two exit or harvesting strategies that I believe are important to account for in Peak Motors Automotive Company are acquisition and Initial Public Offering (IPO). The acquisition, also referred to as a merger, is when a company is sold to another company in the same industry. The buying company typically incorporates its assets into its product offerings (DeTienne et al., 2015). An exit strategy that liquidates the owner’s stake in Peak Motors Automotive Company and makes a substantial profit is selling the company to another car manufacturing company, including Peak Motor's car models, into its product offerings. The advantage of this ...