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Source: author%u2019s own workTab. 2.1.2 Exit strategiesSource: author%u2019s own work662 European EntrepreneurshipType of ExitStrategy Characteristics ObjectivesAcquisition Entrepreneurs sell thebusiness to anothercompany (competitor, largercompany, or other)Return on investment (ROI), moveto new venture, other business orpersonal goalsFamilySuccessionEntrepreneurs transfer thebusiness to familymember/sContinuity of business, maintainlegacy within the familyManagementBuyout (MBO)Entrepreneur sells thebusiness to the existingmanagement teamSmooth transition of ownership,viable option in the case ofretirement or gradual business exit Initial PublicOffering (IPO)Entrepreneurs raise capitalthrough selling companyshares to the public Further growth, liquidity, exitownership position (fully or partially)Liquidation Entrepreneurs dissolve thebusiness and liquidate itsassetsNo longer viable business, exitstrategy without transferringownershipFranchising &LicensingEntrepreneurs allow others toreplicate their concept andoperate under their brandFacilitate rapid expansionwhile leveraging theresources and efforts offranchisees or licenseesMergers &AcquisitionsEntrepreneurs scale the businessby combining forces with othercompanies or acquiringcomplementary businessesAccess to new markets,technologies, talent, orcustomer bases,accelerate growth