Private Capital Markets Project
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MARKET PULSE Q3 2013: Strongest Sellers Market Since Q2 2012 for Deals Ranging $5 Million - $50 Million
According to the Market Pulse Quarterly Survey Third Quarter 2013 Report, 79 percent of M&A advisors representing deals of $5 million - $50 million categorized the current climate as a seller's market. This is the strongest seller's market sentiment reported in the lower middle market since the survey started in second quarter 2012. On the other hand, 72 percent of Main Street brokers representing deals of $500,000 or less reported a buyer's market. In every segment, retirement was the number one reason sellers put their business on the market, indicating that Baby Boomers are continuing to move into the market in larger numbers. In every market segment, more than half of all advisors predict deal volume will grow in the next three months.
2014 CAPITAL MARKETS REPORT: Privately-Held Businesses Optimistic About Growth Opportunities
According to the 2014 Pepperdine Private Capital Markets Survey (PPCMP) Report more than a third of businesses (35 percent) think that general business conditions will improve over the next year. More than half of the businesses surveyed (53 percent) say they are planning to hire additional workers in the next twelve months.
Of the businesses that do not plan to hire, 51 percent of respondents cite economic uncertainty in the U.S. market as the number one reason. This concern is echoed by lenders as nearly every industry sector in the private capital markets reported that economic uncertainty is the biggest current or emerging issue facing privately-held businesses.
"The good news for businesses trying to expand is that interest rates continue to fall for commercial loans of nearly every size," said Dr. Craig R. Everett, director of the Pepperdine Private Capital Markets Project and assistant professor of finance at Pepperdine University's Graziadio School of Business and Management. "This low interest rate environment makes expansion very affordable for those firms that qualify for these loans. Unfortunately, getting access to these funds remains much more challenging for small businesses than it is for the middle market."
PRIVATE CAPITAL ACCESS INDEX Q4: Study Indicates Greater Demand for Capital Among Smallest US Businesses
The nation's smallest businesses reported a greater interest in accessing capital during Q4 to expand their business, a signal that smaller companies are optimistic about market conditions and their growth potential leading into 2014.
Meantime, mid-sized US businesses trimmed their demand for capital for a fifth straight quarter, an indicator that business growth conditions favor smaller businesses over mid-sized US companies.
PPCMP: Nearly Half of Private Businesses Support A Government Shutdown
According to a poll conducted by Pepperdine Private Capital Markets Project (PPCMP), privately held businesses are split on the issue of a government shutdown, with 48 percent saying they support a temporary shutdown while 42 percent oppose it. Without new spending authority from Congress, most U.S. government agencies would have to cease operations on October 1.
Blame for dysfunction in Washington is spread across the board, with 43% of businesses criticizing both Democrats and Republicans equally. Twenty-eight percent of businesses say the blame lies primarily with Democrats and 27% blame Republicans.