Quote:One might expect particular types of company, such as new entrants in the technology sector, to account for most of the observed shift. Surprisingly, however, our research shows that the surge in mortality risk is widespread:

• There are no safe harbors. Mortality risk grew relatively uniformly across all sectors of the economy. Only the past decade saw a slight divergence in outcomes: traditionally stable oligopolies (such as the oil and gas industry) recovered the most, while mortality remains high in more dynamic industries (such as technology).
  
• Neither scale nor experience is a safeguard. Mortality risk also grew for companies of all sizes and ages. While smaller companies have always faced greater risk, even the largest companies are now facing higher exit rates. Company age only began to affect exit risk in the first decade of the 2000s, when turnover plateaued for older companies but continued to grow among younger ones.

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We observed a surprising relationship between revenue growth and mortality: while the fastest-shrinking companies are most likely to perish, they are closely followed by the fastest growers. That is, accelerated growth correlates with shorter life spans, whereas companies with more moderate growth face the lowest risk.
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Shorter life spans and diminished lifetime value constitute a strong trend—but not an inevitability. The same can be said about the relationship between growth and mortality. While it is ever tougher for companies to sustain viability and performance, there is also a broader spread of outcomes—and there are examples of companies that manage to successfully endure (such as Procter & Gamble, Johnson & Johnson, Coca-Cola, and Disney).

Quote:Interestingly, most types of businesses in most industries are now dying younger. Only a few make it into their fifties and sixties.