From the course: Corporate Finance: Profitability in a Financial Downturn

Unlock the full course today

Join today to access over 22,500 courses taught by industry experts or purchase this course individually.

Exiting contracts

Exiting contracts

From the course: Corporate Finance: Profitability in a Financial Downturn

Start my 1-month free trial

Exiting contracts

“

- Fishermen like to say that there comes a time when you need to either fish or cut bait. This means that you need to either lean into what you're doing, or you need to walk away. And the same thing is true when it comes to contracts and boosting profitability. Sometimes you need to go all in, and sometimes you might want to walk away. When you're looking for contracts that you might want to walk away from, you want to look for the biggest contracts, contracts you can't afford, and contracts with buyout clauses. There are all kinds of contracts that people walk away from all the time that have buyout clauses. Think of a lease with a cancellation policy, think of a mortgage that people might refinance, and think about other kinds of contracts and agreements that people buy their way out of or cancel all the time, gym memberships, cable, the whole thing. There really only two different ways to get out of a contract if you…

Contents