Exit Strategies
A two-dimensional framework for choosing between wind-down, harvest and divest, and how to stop value leaking on the way out.
When a venture loses strategic fit, how do you choose between winding it down, harvesting what it built, or divesting it, rather than defaulting to a shutdown?
Members worked through the hardest venture decision: when and how to exit. The session covered mapping ventures on strategic fit versus value-creation potential, the sub-strategies inside each exit path, keeping boards and sponsors aligned, and the hidden costs of waiting too long to decide.
Five key insights
- 01Apply the two-dimensional exit framework
Map ventures on strategic fit versus value-creation potential to decide between wind-down, harvest and divest.
- 02Build a sub-strategy playbook
Within each path, choose from silent closures, transparent sunsets, IP licensing, carve-outs or management buy-outs to optimise the outcome.
- 03Prioritise pre-insolvency asset deals
Selling select assets before insolvency captures higher recoveries and avoids fire-sale discounts.
- 04Harness internal right-of-first-refusal
Offer assets to sister ventures first to preserve synergies and keep value in the group.
- 05Stand up a dedicated exit squad
A cross-functional team across legal, finance and governance standardises the process and speeds up decisions.
Where to start on Monday
Plot every portfolio venture on the strategic-fit versus value-creation matrix and note which exit path each sits closest to.
Frame the next exit proposal like an M&A deal, with familiar carve-out governance and diligence templates, to de-risk sponsor approval.
Embed call or put options and minority-stake retention in every sale, so a share of future upside stays on the table.
Be in the room for the next one.
400+ senior innovation and growth leaders, a roundtable every month, and a recap like this one after each.
Invite-only and complimentary for senior leaders in corporate innovation and growth.