The final stage comes after the repeated desperate grasps at silver bullets during stage 4 finally “erodes resources so that cash tightens, hope fades and options narrow.”

Basically it comes down to this. They run out of cash. Even if the last silver bullet is a good one, there isn’t the cash to support it’s implementation. So their forced to sell out or die. Collins gives examples of each in How the Mighty Fall(HTMF)

Not markers for this stage except that the CASH IS ALL GONE.

But hope springs eternal. Even when a company proceeds as far as Stage 4 and is ready to enter Stage 5, it can recover.

I’ll review Jim Collins findings on this in my last post in this mini-series of HTMF