Entry And Exit Strategies For Businesses: An Overview

An establishment, private in terms of holdings, limited by securities of varying proportions - from equity to preference to debentures, guarantees etc. - carrying along with it differential rights accorded thereof, will, at a certain point of time, look at expansion.

Expansion translates directly into money. More manpower, more office area, more geographical outreach, advanced technology – these measures require funds that the company, along with its founders, directors, and shareholders, may not exactly be in a position to provide. By definition, a private company is barred from reaching out to the general public to raise any capital required for expansion. The Securities and Exchange Board of India (SEBI), India's primordial watchdog, has, by its very constitution, sworn to protect the general public from petty unregistered entities looking to make a quick-buck while trying to circumvent strict and accurate regulations put in place with the sole objective to