Planning an exit strategy plays a key role in determining the strategic direction of a business opportunity. It is essentially protecting the value of the business in the event of several special cases. Our exit strategies are matched to the characteristics of the business and market ultimately improving our probability of success. The potential hurdles of our business opportunity have been outlines as either process-related or finance-related. If we are not able to overcome these hurdles, the following exit strategies will be considered:

Product Shift

In the event that we cannot produce the projected amounts of the target compounds, or are unable to enter the market because of regulatory policy or entry barriers we will perform a product shift. This would include producing another product can be made using the same operating line. Glucose can be used as a raw material for sustainable production of biofuels and other existing industrial chemicals. This strategy enables Upcycled Aromatics to remain a free-enterprise.

Market Diversification

This strategy helps create a direction for business growth in the event that we are not capturing the desired market share. We plan to expand our customer base to remain profitable. For example, since there are many undeveloped areas in the world where people cannot afford Tamiflu® from Roche ( the company controls the market), we can sell our product at a much lower price since the profit margin on shikimic acid is quite significant. This method is applicable especially when entry barriers mean our company cannot sell our product, but we receive regulatory approval.

Merger

Upcycled Aromatics will consider a merger in the event that combining businesses can create more value as a single company. Opportunity for a joint venture may exist upstream our downstream of our processing facility. Ideally the merger would enable our facility to cut costs and increase profits through structural and operational advantages. This strategy can be seen as enhancing the future worth of our business.