![]() ![]() In today’s ever-changing business environment, the unfortunate fate of Company Z is not uncommon. ![]() Industry players were suffering, helplessly standing by as revenues and profits dwindled while the shrinking market only intensified competition. The industry faced competitive pressures from online distribution and fulfillment platforms that continued to innovate almost daily as well as changing customer expectations around media consumption. With hindsight, even without considering the advent and popularization of streaming, the traditional media fulfillment and distribution industry was not long for the future. Nonetheless, reflecting paltry growth prospects, weakening demand, and business model disruption, the company was sold for a low valuation to a synergistic buyer. In late 2012, during my tenure as an investment banking analyst, I worked on the sale of a declining media fulfillment and distribution business, “Company Z.” Company Z fulfilled and distributed products that were nearing technological obsolescence (think DVDs, CDs, Blu-ray) while directly competing against Amazon and other online retailers on a number of others.Ĭompany Z had been in business for over 20 years, having established a reputation for reliability, dependability, and product offering breadth and variation.
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