The rate at which US companies disappear has more than halved since 2000.
Five-year failure risk (the proportion of companies present in a given year that are delisted within the following five years) peaked at around 40% in the early 2000s. It now sits at roughly 18%, about where it stood in 1980.
The BCG Institute reached this number by assembling a database of over 30,000 US-listed public companies from the last 50 years. Its analysis found that a company’s failure rate depends on its age, size, and industry.
Here’s what CEOs can do if their failure risk is rising: