BOSTON, Nov. 25,
2024 /PRNewswire/ -- Capstone Partners, a leading
middle market investment banking firm, released
its 2024 Middle Market Business Owners Survey
Report, with insights from privately-owned companies across the
U.S. This report combines Capstone's in-depth middle
market knowledge with proprietary data obtained from 404
participating owners of privately-owned, middle market companies.
Conducted between July 31, 2024, and
August 26, 2024, the survey captures
sentiment at a pivotal moment in the U.S., identifying CEOs'
decision making processes, growth, financial, and exit plans, and
value drivers that characterized middle market business in
2024.
Key Findings:
- The share of business owners afflicted by heightened interest
rates increased 5.1% compared to our 2023 survey, rising to the
second most prominent hurdle behind elevated inflation.
- Among CEOs concerned with inflation/interest rates, the
majority (60.8%) have accounted for the higher-for-longer interest
rate environment by reducing business expenses—a strategy that most
plan to continue over the next 12 months.
- The lion's share (42.5%) of CEOs surveyed indicated that a
party change in the White House (from Democrat to Republican) would
have a positive impact on business operations. Macroeconomic issues
are slated to be the most important factor in the 2024 election
regardless of CEOs' political stance.
- Many business owners have turned to the capital markets to
prompt growth amid economic turbulence as 44.1% of CEOs surveyed
completed at least one capital markets transaction over the last 12
months.
- Private equity groups have continued to contact owners to
explore buyout opportunities, with 45% total business owners
surveyed contacted by a private equity firm looking to acquire
their company over the last 12 months.
- The share of business owners surveyed that require performance
improvement support increased 17.1% year-over-year (YOY) as CEOs
have been under pressure to maintain financial stability amid
heightened inflation and a difficult operating environment.
- Nearly half (49.5%) of CEOs surveyed plan to execute growth
strategies over the next 12 months to capture additional market
share and gain scale in preparation for a market rebound.
- The middle market has demonstrated a need for succession
planning and growth strategy services as 37.9% of CEOs surveyed in
2024 indicated they have yet to start planning a business
exit.
- The share of CEOs surveyed with a very positive U.S. economic
outlook has declined each year since 2021—falling to 15.3% in
2024.
- Based on our survey data, revenue growth has continued to have
a strong impact on owners' industry outlook, both of which have
remained optimistic for 2025.
Through this research, Capstone has evaluated the health of the
middle market in 2024, uncovering recent challenges faced by
business owners and the resources required to offset these
challenges. The report also provides an analysis of forward-looking
growth strategies and initiatives, business owners' outlook on
their respective industries and the broader U.S. economy, and
expected revenue changes.
To access the full report including a breakout of the results by
industry, click here.
Make your voice heard in our upcoming survey here.
ABOUT CAPSTONE PARTNERS
For over 20 years, the firm has been a trusted advisor to
leading middle market companies, offering a fully integrated range
of investment banking and financial advisory services uniquely
tailored to help owners, investors, and creditors through each
stage of the company's lifecycle. Capstone's services include
M&A advisory, debt and equity placement, corporate
restructuring, special situations, valuation and fairness opinions
and financial advisory services. Headquartered in
Boston, the firm has 175+
professionals in multiple offices across the U.S. With 12 dedicated
industry groups, Capstone delivers sector-specific expertise
through large, cross-functional teams. Capstone is a
subsidiary of Huntington Bancshares Incorporated (NASDAQ:
HBAN). For more information, visit
www.capstonepartners.com.
View original
content:https://www.prnewswire.com/news-releases/capstone-partners-releases-2024-middle-market-business-owners-research-survey-ceos-focus-on-performance-improvement-turn-to-capital-market-growth-in-high-interest-rate-environment-302315611.html
SOURCE Capstone Partners
