This week, research exit strategies for ventures using the following questions to guide you: What are the most common reasons for financial distress in ventures in your selected industry? What are...

Question 1: What are the most common reasons for financial distress in ventures in your selected
industry? What are some turnaround strategies for ventures in distress?
The most common reasons for the financial distress in the ventures in the IT industry is
lack of innovation by the company, usage of obsolete technologies and less investment in R&D.
The primary turnaround for a venture in distress is to restructure the operations and focus on
investing the research to come up with innovative technologies. If a venture lacks scope, it can
certainly look for a possible merger to bail itself out.
Question 2: What exit strategies are used by successful and unsuccessful ventures in this
industry?
The primary exit strategy used by the successful and unsuccessful ventures in the
industry is merger or acquisition. For increase the size and market capitalization of the firm,
company’s go for horizontal, vertical and conglomerate mergers. Other economic reasons for
acquisitions and mergers include overcoming of market barriers, increased speed to the market
by increasing market capitalization and gaining access to new markets, overcoming the high risk
and...