Capstone Partners, a 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 captures sentiment in the U.S., identifying CEOs’ decision making processes, growth, financial and exit plans, as well as 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 Capstone’s 2023 survey, rising to the second most prominent hurdle behind elevated inflation.
- Among CEOs concerned with inflation and 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 (Y/Y) 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.
To access the full report including a breakout of the results by industry, click here.
