Barriers to exit
Fundamental analysisAlso called: Exit barriers
The costs and obligations that keep a participant producing even when it is unprofitable — single-purpose assets, high fixed costs, workforce and contractual obligations, and lenders who prefer a running asset to a distressed sale.
In plain terms
Everybody studies barriers to entry. Barriers to exit decide how deep a downturn gets and how many years it lasts, because loss-making capacity keeps running while it covers its cash costs.