A significant number of resellers and distributors have lost up to a third of their value in the past 12 months, according to the latest research from Plimsoll.
The market watcher examined the top 167 hardware distributors in the market and concluded that 44 companies are worth a third less than they were a year ago. But on a more positive note, 70 companies in that market have increased in value.
In reseller land, the analyst identified 303 out of 996 firms studied that are worth less than a third of the price than a year ago, but 410 have also increased in value.
David Pattison, analyst at Plimsoll, said: “It has certainly been a tough few years. Values have fallen markedly from their peak, but the number of companies that are worth more this year than last is encouraging.
“[Those firms that have lost value] have such a lot of ground to make up and many are in such dire straits that it is unlikely they will return to their former glory. The post-recession market is so highly competitive I would expect a number of these companies to be bought out on the cheap or decline further and eventually be wound up,” he said.
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