Exit Strategies

Buyers and suppliers need to have a clearly defined exit strategy agreed during the pre-contract stage to avoid difficulties should the relationship turn sour (Barton, 2012)

Information about Exit Strategies

There are many reasons why contracts come to an end, including non-performance by one or both parties, a significant change in the requirements of either party, or that the contract has run its course (Burnes and Anastasiadis, 2003; Elango, 2008). In almost all cases, having a well-developed exit strategy is critical. The strategy is usually developed as the means by which to withdraw from a working relationship with a supplier. It can incorporate the process of returning assets, transferring back key employees and the conditions under which a relationship can terminate, for example, the failure to meet service level agreements, changes in circumstances, and ethical breaches (Elango, 2008; Kam et al., 2011). The strategy usually details timescales for key actions and the party responsible for such actions (Elango, 2008, Kam et al., 2011).

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