Barriers to Exit - Explained
What are Barriers to Exit?
Written by J. Mance Gordon
Updated at April 21st, 2024
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What is a Barrier to Exit?
Barriers to exit are restrictions that make it difficult for a company to make an exit from the industry in case they want to separate or stop operating. The most common barriers to exit involve specialized assets that cannot be sold easily, big exit costs associated with writing off assets, or losing customer goodwill.