CEOs Execute Growth Strategies in
Preparation for a Market Rebound
BOSTON, Dec. 7, 2023
/PRNewswire/ -- Capstone Partners, a leading middle market
investment banking firm, released its 2023 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 435 participating owners of privately-owned, middle
market companies. Conducted between July 31,
2023 and August 31, 2023, 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 2023.
Key Findings:
- Elevated inflation has continued to adversely affect businesses
across the middle market, with the majority (58.9%) of CEOs
surveyed noting inflation as the top concern regarding company
growth.
- Among total business owners surveyed, 56.3% emphasized capital
investment as the most useful resource in support of their primary
operational initiative, followed by performance improvement support
(24.8%) and strategic partnerships (18.9%).
- More than half (50.8%) of business owners 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.
- Over the next twelve 12 months, 41.4% of CEOs surveyed will
primarily focus on financial stability and improving cash flow,
largely driven by market demand concerns and economic
turbulence.
- In 2023, 26.4% of CEOs surveyed indicated they have yet to
start planning a business exit, illustrating the need for
professional advisory services.
- Owners' succession planning has heavily depended on annual
revenue generated, as CEOs of smaller companies (less than
$10 million of annual revenue) plan
to transfer ownership to family and larger company operators (more
than $10 million of annual revenue)
plan to transfer ownership to business partners.
- As the majority of CEOs surveyed indicated growth strategies
are a priority for 2024, the lion's share (31.5%) of owners
anticipate a need for growth strategy support services.
- There has been a strong correlation between year-over-year
(YOY) revenue growth and industry optimism among the CEOs surveyed,
as the lion's share of owners in each industry have forecasted
revenue increases for 2024 and exhibited a positive industry
outlook.
Through this research, Capstone has evaluated the health of the
middle market in 2023, 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.
For More Information Contact:
Sarah Doherty
Director of Market Intelligence
617-619-3310
sdoherty@capstonepartners.com
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SOURCE Capstone Partners