Capstone Partners Releases 2025 Middle Market Business Owners Research Survey

Core Insights - The 2025 Middle Market Business Owners Survey Report by Capstone Partners reveals significant insights into the decision-making processes, growth strategies, and financial outlooks of U.S. middle market companies [1][3] Group 1: Economic Concerns and Business Adjustments - For the third consecutive year, 92.5% of CEOs identified inflation as their primary concern affecting company growth [7] - 39.7% of business owners have reduced company expenses in response to tariffs [7] - CEO perspectives on the One Big Beautiful Bill (OBBB) Act are mixed, with 41.4% expecting no impact, 36.7% anticipating negative effects, and 21.9% viewing it positively [7] Group 2: Capital Markets and Growth Strategies - 57.4% of CEOs have engaged in at least one capital markets transaction in the past year to enhance growth and optimize capital structure [7] - Private equity interest in middle market businesses is rising, with 53.9% of business owners reporting contact from a PE firm in the last year [7] - Over half (55.9%) of business owners plan to implement growth strategies in the next 12 months, indicating a shift towards growth rather than just financial stability [7] Group 3: Performance Improvement and M&A Outlook - The need for performance improvement support among business owners has increased by 3.4% compared to the previous year, as they aim to maintain margins and improve operational efficiencies [7] - A record 75.8% of business owners are preparing for an exit, suggesting a potential surge in middle market M&A activity [7] Group 4: Economic Outlook and Revenue Projections - The percentage of CEOs with a very positive outlook on the U.S. economy has risen to 18.7% in 2025, marking the first increase in five years as clarity around interest rates and inflation improves [7] - Business owners anticipate continued revenue growth, with 26.9% projecting a 1-9% year-over-year increase and 27.2% expecting growth of 10-25% [7]