In This Article:
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:
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.