VAR values hit by recession
New figures reveal the full impact the downturn has had on reseller valuations
Bargain basement: About two thirds of top UK VARs are worth less than they were a year ago
Nearly two-fifths of top UK resellers have seen their value plummet by a third or more over the past year, according to the latest figures released by market-watcher Plimsoll.
The analyst firm surveyed what it considers to be the top 996 UK resellers and found 665 are worth less than they were last year. Of these, 388 saw their value drop by over a third.
David Pattison, senior analyst at Plimsoll, said some channel firms had over-extended themselves. “It is not surprising that the value of companies has taken a pounding recently, but the extent of the squeeze is striking,” he said. “As demand slackened and firms protected their market share, many saw profitability fall.
“Declining margins have been the biggest weight on values in the market.”
But he added that the fact some firms have increased their value hopefully points to “better times ahead”.