q1 2016 pca index results - full report
TRANSCRIPT
A Higher Degree of You02.22.16
First Quarter 2016Craig Everett, Ph.D.
Director, Pepperdine Private Capital Markets Project
A Higher Degree of You
bschool.pepperdine.edu/accesscapital
© 2012-2016 Pepperdine University. All rights reserved. Pepperdine Private Capital Access Index (“PCA Index”) is a trademark of Pepperdine University. PCA Index content is the intellectual property of Pepperdine University or its third party content providers. Any copying, republication or redistribution of PCA Index content, including but not limited to caching, framing or similar means, is expressly prohibited without the prior written consent of Pepperdine University. Pepperdine University shall not be liable for any errors, omissions or delays in PCA Index content, or for any actions taken in reliance thereon.
PUBLISHED BY
2
A Higher Degree of You
bschool.pepperdine.edu/accesscapital
ACKNOWLEDGEMENTS
I’d also like to thank the following people at The Graziadio School of Business and Management for their contributions:
David M. Smith, Ph.D.Dean
John K. Paglia, Ph.D.Associate Dean, Associate Professor of Finance
Lisa PerryDirector, Marketing and Communications
Irina ShaykhutdinovaResearch Associate
3
A Higher Degree of You
bschool.pepperdine.edu/accesscapital
This research was made possible with the support of Dun & Bradstreet.
DUN & BRADSTREET
Jeffrey StibelVice Chairman
Judy Hackett, Chief Marketing Officer
Aaron StibelChief Technology Officer
Heather HerndonDirector, Marketing and Communications
Lauren SimpsonMarketing and Communications Manager
Bernice BrennanManager, Creative Services & Marketing Communications
Ben PollockMarketing Manager
A Higher Degree of You
bschool.pepperdine.edu/accesscapital
I. About the Private Capital Access (PCA) Index……...….…6
II. Demand for external financing……………………..….….15
III. Accessibility/success rate of raising new capital……...…27
IV. Expected demand for external financing……………..…..40
V. Expected capital access (success) rates……………..….45
VI. Hiring/growth outlooks and financing failure impacts…51
VII. About the respondents…………………………………..…74
TABLE OF CONTENTS
5
bschool.pepperdine.edu/accesscapital
The Pepperdine Private Capital Access Index (PCA) is a quarterly indicator produced by the Graziadio School of Business and
Management at Pepperdine University, and with the support of Dun & Bradstreet. The index is designed to measure the demand
for, activity, and health of the private capital markets. The purpose of the PCA Index is to gauge the demand of small and
medium-sized businesses for financing needs, the level of accessibility of private capital, and the transparency and efficiency of
private financing markets.
I. ABOUT THE PRIVATE CAPITAL ACCESS (PCA) INDEX
6
A Higher Degree of You
bschool.pepperdine.edu/accesscapital
• 40 questions• Invite to participate distributed to sample from Dun & Bradstreet’s business database
• 2,469 completed responses • Where relevant, responses are segmented by revenues sizes (<$5 million; $5 million to $100 million)• Responses collected from February 2 – February 19, 2016
ABOUT THE Q1 2016 PRIVATE CAPITAL ACCESS (PCA) INDEX SURVEY
7
A Higher Degree of You
bschool.pepperdine.edu/accesscapital
PRIVATE CAPITAL ACCESS (PCA) AND PRIVATE CAPITAL DEMAND (PCD) INDEX RESULTS - WHOLE SAMPLE
8
A Higher Degree of You
bschool.pepperdine.edu/accesscapital
PRIVATE CAPITAL ACCESS (PCA) AND PRIVATE CAPITAL DEMAND (PCD) INDEX RESULTS – WHOLE SAMPLE
9
2012-Q2
2012-Q3
2012-Q4
2013-Q1
2013-Q2
2013-Q3
2013-Q4
2014-Q1
2014-Q2
2014-Q3
2014-Q4
2015-Q1
2015-Q2
2015-Q3
2015-Q4
2016-Q1
0102030405060708090
100
A Higher Degree of You
bschool.pepperdine.edu/accesscapital
SMALL BUSINESS PCA AND PCD INDEX RESULTS (< $5M IN REVENUES)
10
A Higher Degree of You
bschool.pepperdine.edu/accesscapital
SMALL BUSINESS PCA AND PCD INDEX RESULTS (< $5M IN REVENUES)
11
2012-Q2
2012-Q3
2012-Q4
2013-Q1
2013-Q2
2013-Q3
2013-Q4
2014-Q1
2014-Q2
2014-Q3
2014-Q4
2015-Q1
2015-Q2
2015-Q3
2015-Q4
2016-Q1
0102030405060708090
100
A Higher Degree of You
bschool.pepperdine.edu/accesscapital
LOWER MIDDLE MARKET PCA AND PCD INDEX RESULTS ($5M – $100M IN REVENUES)
12
A Higher Degree of You
bschool.pepperdine.edu/accesscapital
LOWER MIDDLE MARKET PCA AND PCD INDEX RESULTS ($5M – $100M IN REVENUES)
13
2012-Q2
2012-Q3
2012-Q4
2013-Q1
2013-Q2
2013-Q3
2013-Q4
2014-Q1
2014-Q2
2014-Q3
2014-Q4
2015-Q1
2015-Q2
2015-Q3
2015-Q4
2016-Q1
0102030405060708090
100
A Higher Degree of You
bschool.pepperdine.edu/accesscapital
ANNUAL REVENUE CHANGE EXPECTATIONS BY REVENUE SIZE
Q3, 2012
Q4, 2012
Q1, 2013
Q2, 2013
Q3, 2013
Q4, 2013
Q1, 2014
Q2, 2014
Q3, 2014
Q4, 2014
Q1, 2015
Q2, 2015
Q3, 2015
Q4, 2015
Q1, 2016
0%
5%
10%
15%
bschool.pepperdine.edu/accesscapital
II. DEMAND FOR EXTERNAL FINANCING
15
A Higher Degree of You
bschool.pepperdine.edu/accesscapital
DEMAND FOR FINANCING BY PURPOSE (% WITH ANY NEED REPORTED)
16
0%20%40%60%80%
100%
A Higher Degree of You
bschool.pepperdine.edu/accesscapital
STRENGTH OF DEMAND FOR FINANCING (AMONG THOSE INDICATING DEMAND)
Scale 1-4: slight, moderate, high, extremely high need
17
0.01.02.03.04.0
A Higher Degree of You
bschool.pepperdine.edu/accesscapital
RESPONDENTS INDICATING HIGH AND EXTREMELY HIGH DEMAND FOR FINANCING (AMONG THOSE INDICATING DEMAND)
18
0%
20%
40%
60%
80%
100%
A Higher Degree of You
bschool.pepperdine.edu/accesscapital
HOW MUCH FINANCING RESPONDENTS ARE SEEKING
19
Less t
han $5,000
$5,000 - $9,999
$10,000 - 24,999
$25,000 - $49,999
$50,000 - $99,999
$100,000 - $499,999
$500,000 - $999,999
$1 milli
on - $1.999 m
illion
$2 milli
on - $4.999 m
illion
$5 milli
on - $9.999 m
illion
$10 milli
on - $24.999 m
illion
$25 milli
on - $49.999 m
illion
$100 milli
on or more
0%20%40%60%80%
100%
A Higher Degree of You
bschool.pepperdine.edu/accesscapital
PERCENTAGE INDICATING “YES” TO “IS THE CURRENT BUSINESS FINANCING ENVIRONMENT RESTRICTING…”
20
Growth opportunities for your business? Your ability to hire new employees?0%
20%
40%
60%
80%
100%58%
50%61%
53%
33%19%
Whole sample < $5 million $5 -$100 million
A Higher Degree of You
bschool.pepperdine.edu/accesscapital
HOW DID RESPONDENTS BUSINESS OPERATE IN THE LAST QUARTER
21
profit break even loss0%
20%
40%
60%
80%
100%
A Higher Degree of You
bschool.pepperdine.edu/accesscapital
RESPONDENTS PRIMARY SOURCE OF CREDIT IN THE LAST QUARTER
22
Large
bank
Community ban
k
Credit u
nionCDFI
Online l
ender
Trade c
redit p
rovider
Frien
ds/fam
ilyOther
No cred
it0%
20%
40%
60%
80%
100%
A Higher Degree of You
bschool.pepperdine.edu/accesscapital
WHY WAS THAT THE PRIMARY SOURCE OF CREDIT IN LAST QUARTER
23
I was able to qualify for it
It had a reasonable interest rate
I intended to use it only as a reserve
The payments were affordable
I did not qualify for other sources of
financing
0%
20%
40%
60%
80%
100%
A Higher Degree of You
bschool.pepperdine.edu/accesscapital
WHAT WAS RESPONDENTS BUSINESS’ MOST DIFFICULT CHALLENGE IN THE LAST QUARTER
24
0%20%40%60%80%
100%
A Higher Degree of You
bschool.pepperdine.edu/accesscapital
PERCENTAGE OF BUSINESSES THAT HAVE FINANCING COMING FROM OUTSIDE SOURCES
25
Whole sample < $5 million $5 -$100 million0%
20%
40%
60%
80%
100%
41% 38%
64%
A Higher Degree of You
bschool.pepperdine.edu/accesscapital
PERCENTAGE OF RESPONDENTS WHO ATTEMPTED TO RAISE OUTSIDE FINANCING
IN THE LAST THREE MONTHS
26
Whole sample < $5 million $5 -$100 million0%
20%
40%
60%
80%
100%
32% 32% 30%
bschool.pepperdine.edu/accesscapital
III. ACCESSIBILITY/SUCCESS RATE
27
A Higher Degree of You
bschool.pepperdine.edu/accesscapital
IS IT DIFFICULT OR EASY TO RAISE NEW EXTERNAL FINANCING?
Equity financing Debt financing
28
Difficult Neither difficult nor easy
Easy0%
20%
40%
60%
80%
100%
Difficu
lt
Neither
difficu
lt nor e
asy Easy
0%20%40%60%80%
100%
A Higher Degree of You
bschool.pepperdine.edu/accesscapital
FINANCING SUCCESS RATES BY TYPE AND BUSINESS SIZE FOR PRIOR THREE MONTHS
29
Frien
ds and fa
mily
Crowd funding (
equity
/ deb
t)
Credit c
ard - p
ers.
Credit c
ard - b
iz.
Bank l
oan - b
iz.
Asset b
ased le
nder
Tax p
repara
tion compan
y
Merchan
t cash
advan
ce
Vent. c
apita
l
Mezz. le
nder0%
20%40%60%80%
100%
A Higher Degree of You
bschool.pepperdine.edu/accesscapital
BANK LOANS: FINANCING SUCCESS RATES BY BUSINESS SIZE FOR PRIOR THREE MONTHS
30
Q2, 2012
Q3, 2012
Q4, 2012
Q1, 2013
Q2, 2013
Q3, 2013
Q4, 2013
Q1, 2014
Q2, 2014
Q3, 2014
Q4, 2014
Q1, 2015
Q2, 2015
Q3, 2015
Q4, 2015
Q1, 2016
0%
20%
40%
60%
80%
100%
A Higher Degree of You
bschool.pepperdine.edu/accesscapital
ASSET BASED LOANS: FINANCING SUCCESS RATES BY BUSINESS SIZE FOR PRIOR THREE MONTHS
31
Q2, 2012
Q3, 2012
Q4, 2012
Q1, 2013
Q2, 2013
Q3, 2013
Q4, 2013
Q1, 2014
Q2, 2014
Q3, 2014
Q4, 2014
Q1, 2015
Q2, 2015
Q3, 2015
Q4, 2015
Q1, 2016
0%
20%
40%
60%
80%
100%
A Higher Degree of You
bschool.pepperdine.edu/accesscapital
PERCENTAGE OF RESPONDENTS WHO SUCCESSFULLY SECURED A SBA BACKED LOAN IN THE LAST THREE MONTHS
32
Frien
ds and fa
mily
Crowd funding (
equity
/ deb
t)
Credit c
ard - p
ers.
Credit c
ard - b
iz.
Bank l
oan - b
iz.
Asset b
ased le
nder
Tax p
rep. co
mpany
Merch. ca
sh advan
ce
Vent. c
apita
l
Mezz. le
nder0.0%
20.0%40.0%60.0%80.0%
100.0%
A Higher Degree of You
bschool.pepperdine.edu/accesscapital
PERCENTAGE OF RESPONDENTS THAT HAVE CONSIDERED SBA LOAN FOR THEIR BUSINESSES
33
Whole sample < $5 million $5 million -$100 million0%
20%
40%
60%
80%
100%
45% 48%
28%
A Higher Degree of You
bschool.pepperdine.edu/accesscapital
PERCENTAGE OF RESPONDENTS THAT HAVE SUCESSFULLY SECURED SBA BACKED LOAN IN THE LAST THREE MONTHS
34
Whole sample < $5 million $5 million -$100 million0%
20%
40%
60%
80%
100%
2% 1% 2%
A Higher Degree of You
bschool.pepperdine.edu/accesscapital
PERCENTAGE OF THOSE WHO ATTEMPTED TO RAISE FINANCING BY TYPE OF FINANCING FOR PRIOR THREE MONTHS
35
Frien
ds and fa
mily
Crowd funding (
equity
/ deb
t)
Credit c
ard - p
ers.
Credit c
ard - b
iz.
Bank l
oan - b
iz.
Asset b
ased le
nder
Tax p
rep. co
mpany
Merch. ca
sh advan
ce
Vent. c
apita
l
Mezz. le
nder0.0%
20.0%40.0%60.0%80.0%
100.0%
A Higher Degree of You
bschool.pepperdine.edu/accesscapital
MAIN PURPOSE FOR RAISING OR ATTEMPTING TO RAISE FINANCING
36
0%20%40%60%80%
100%
A Higher Degree of You
bschool.pepperdine.edu/accesscapital
REASONS FOR BUSINESSES NOT ATTEMPTING TO RAISE EXTERNAL FINANCING (MULTIPLE SELECTIONS)
37
Enough
cash flow
Sufficie
nt finan
cing i
n place
Business
would be r
ejecte
d
Lack o
f exp
ertise
Weak e
conomy
Not enough
time
Waiting f
or chea
per finan
cing
Loss
of contro
l / flexi
bility
Cease
operation / l
iquidateOther
0%20%40%60%80%
100%
A Higher Degree of You
bschool.pepperdine.edu/accesscapital
PERCENTAGE OF OWNERS WHO TRANSFERRED PERSONAL ASSETS TO BUSINESS OVER PRIOR THREE MONTHS
38
Yes No Unsure0%
10%20%30%40%50%60%70%80%90%
100%
37%
60%
4%
39%
57%
4%14%
83%
3%
Whole sample < $5 million $5 -$100 million
A Higher Degree of You
bschool.pepperdine.edu/accesscapital
TYPES OF PERSONAL ASSETS TRANSFERRED TO BUSINESS DURING PRIOR THREE MONTHS
(MULTIPLE SELECTIONS)
39
Personal sav-ings / invest-
ments
Personal credit card purchases
Personal loan Cash from the sale of personal
assets
Home equity loan
Other0%
20%
40%
60%
80%
100%
bschool.pepperdine.edu/accesscapital
IV. EXPECTED DEMAND FOR EXTERNAL FINANCING
40
A Higher Degree of You
bschool.pepperdine.edu/accesscapital
PERCENTAGE OF BUSINESSES PLANNING TO RAISE FINANCING IN THE NEXT SIX MONTHS
41
Yes No Unsure0%
20%
40%
60%
80%
100%
37% 42%
21%
38% 39%
22%26%
62%
12%
Whole sample < $5 million $5 million -$100 million
A Higher Degree of You
bschool.pepperdine.edu/accesscapital
PERCENTAGE OF RESPONDENTS INDICATING DEMAND FOR NEW FINANCING IN THE NEXT SIX MONTHS
42
0%
40%
80%
A Higher Degree of You
bschool.pepperdine.edu/accesscapital
STRENGTH OF EXPECTED DEMAND FOR NEW EXTERNAL FINANCING IN THE NEXT SIX MONTHS
(SCALE 1-4: SLIGHT, MODERATE, HIGH, EXTREMELY HIGH)
43
0.01.02.03.04.0
A Higher Degree of You
bschool.pepperdine.edu/accesscapital
RESPONDENTS INDICATING HIGH OR EXTREMELY HIGH EXPECTED DEMAND FOR NEW EXTERNAL FINANCING IN THE NEXT SIX MONTHS
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
bschool.pepperdine.edu/accesscapital
V. EXPECTED ACCESS RATES
45
A Higher Degree of You
bschool.pepperdine.edu/accesscapital
DO YOU EXPECT IT WOULD BE EASY OR DIFFICULT TO RAISE NEW FINANCING IN THE NEXT SIX MONTHS?
Equity financing Debt financing
46
Difficult Neither difficult nor easy
Easy0%
20%
40%
60%
80%
100%
Difficu
lt
Neither
difficu
lt nor e
asy Easy
0%20%40%60%80%
100%
A Higher Degree of You
bschool.pepperdine.edu/accesscapital
LIKELY SOURCES OF FINANCING
47
Frien
ds and fa
mily
Grants
(SBIR, S
TTR, e
tc.)
Crowd funding (
equity
/ deb
t)
Trade c
redit
Credit c
ard - p
ers.
Loan
- pers
.
Credit c
ard - b
iz.Lea
se
Bank l
oan - b
iz.
CDFI/ Cred
it union
Asset b
ased le
nder
Biz onlin
e mark
et p
lace l
ender
Tax p
rep. co
mp.
Facto
r
Merch. ca
sh advan
ce
Angel ca
pital
Vent. c
apita
l
Private
equity
group
Mezz. le
nder
Hedge
fund
0%20%40%60%80%
100%
A Higher Degree of You
bschool.pepperdine.edu/accesscapital
MAIN PURPOSE FOR RAISING EXPECTED FINANCING
48
0%20%40%60%80%
100%
A Higher Degree of You
bschool.pepperdine.edu/accesscapital
LEVEL OF CONFIDENCE FOR SUCCESSFUL FINANCING (SCALE 0-4: NONE; SOME; MODERATELY; VERY; COMPLETELY)
49
Frien
ds and fa
mily
Crowd funding (
equity
/ deb
t)
Credit c
ard - p
ers.
Credit c
ard - b
iz.
Bank l
oan - b
iz.
Asset b
ased le
nder
Tax p
rep. co
mp.
Merch. ca
sh advan
ce
Vent. c
apita
l
Mezz. le
nder0.01.02.03.04.0
A Higher Degree of You
bschool.pepperdine.edu/accesscapital
REASONS FOR NOT PLANNING ON RAISING FINANCING
50
Enough
cash flow
Sufficie
nt finan
cing i
n place
Weak e
conomy
Business
would be r
ejecte
d
Not enough
time
Lack o
f exp
ertise
Waiting f
or chea
per finan
cing
Loss
of contro
l / flexi
bility
Cease
operation / l
iquidateOther
0%20%40%60%80%
100%
bschool.pepperdine.edu/accesscapital
VI. HIRING / GROWTH OUTLOOKS AND FINANCING FAILURE IMPACTS
51
A Higher Degree of You
bschool.pepperdine.edu/accesscapital
NUMBER OF EMPLOYEES PLANNED TO BE HIRED IN THE NEXT SIX MONTHS
52
0 1-2 3-5 6-10 11-15 16-20 21-30 31-40 41-50 51-75 76 - 100
101 - 200
0%
5%
10%
15%
20%
25%
30%
35%
A Higher Degree of You
bschool.pepperdine.edu/accesscapital
REASONS PREVENTING RESPONDENTS FROM HIRING
53
0%20%40%60%80%
100%
A Higher Degree of You
bschool.pepperdine.edu/accesscapital
WILL EMPLOYEES PLANNED TO BE HIRED BE FULL-TIME OR PART-TIME
54
Mostly full-time employees Mostly part-time employees A combination of full-time and part-time
0%10%20%30%40%50%60%70%80%
A Higher Degree of You
bschool.pepperdine.edu/accesscapital
DO RESPONDENTS EXPECT TO DECREASE THE NUMBER OF EMPLOYEES IN THE NEXT SIX MONTHS
55
No 1-2 3-5 6-100%
10%20%30%40%50%60%70%80%90%
100%
A Higher Degree of You
bschool.pepperdine.edu/accesscapital
HOW MANY FULL-TIME EMPLOYEES RESPONDENTS REPLACED WITH (OR CONVERTED TO) PART-TIME EMPLOYEES IN THE LAST SIX MONTHS
56
0 1-2 3-5 6-100%
10%20%30%40%50%60%70%80%90%
A Higher Degree of You
bschool.pepperdine.edu/accesscapital
HOW MANY FULL-TIME EMPLOYEES RESPONDENTS ARE PLANNING TO REPLACE WITH (OR CONVERT TO) PART-TIME EMPLOYEES IN THE NEXT SIX
MONTHS
57
0 1-2 3-5 6-10 21-300%
10%20%30%40%50%60%70%80%90%
A Higher Degree of You
bschool.pepperdine.edu/accesscapital
HOW MANY PART-TIME EMPLOYEES RESPONDENTS REPLACED WITH (OR CONVERTED TO) FULL-TIME EMPLOYEES IN THE LAST SIX MONTHS
58
0 1-2 3-5 6-100%
10%20%30%40%50%60%70%80%90%
A Higher Degree of You
bschool.pepperdine.edu/accesscapital
HOW MANY PART-TIME EMPLOYEES RESPONDENTS ARE PLANNING TO REPLACE WITH (OR CONVERT TO) FULL-TIME EMPLOYEES IN THE NEXT SIX
MONTHS
59
0 1-2 3-5 6-100%
10%20%30%40%50%60%70%80%
A Higher Degree of You
bschool.pepperdine.edu/accesscapital
HOW RESPONDENTS EXPECT THEIR BUSINESS TO PERFORM IN 2016 COMPARED TO 2015
60
Substantially better Somewhat better Exactly the same Somewhat worse Substantially worse0%
20%
40%
60%
80%
100%
A Higher Degree of You
bschool.pepperdine.edu/accesscapital
HOW CONFIDENT ARE RESPONDENTS THAT THEIR BUSINESS WILL GROW IN 2016
61
Extremely confident Somewhat confident Somewhat unconfident Extremely unconfident0%
20%
40%
60%
80%
100%
A Higher Degree of You
bschool.pepperdine.edu/accesscapital
THE MOST SIGINIFICANT CHALLENGE FOR BUSINESS IN 2016
62
Genera
ting new
custo
mer lea
ds
Getting c
apita
l to gr
ow
Hiring q
uality
employe
es
Retaining e
xisting c
ustomers
Upgrading t
echnology
infra
structu
re
Purchasi
ng or le
asing e
quipment
Paying b
illsOther
None0%
20%40%60%80%
100%
A Higher Degree of You
bschool.pepperdine.edu/accesscapital
HOW THE FEDERAL INTEREST RATE HIKE COULD IMPACT RESPONDENTS BUSINESSES
63
0%
20%
40%
60%
80%
100%
A Higher Degree of You
bschool.pepperdine.edu/accesscapital
IMPACTS OF UNSUCCESSFUL FINANCING EVENT IN THE NEXT SIX MONTHS FOR THOSE PLANNING TO RAISE CAPITAL (MULTIPLE SELECTIONS)
64
0%
40%
80%
A Higher Degree of You
bschool.pepperdine.edu/accesscapital
PERCENTAGE OF RESPONDENTS HEDGED THE FOLLOWING AREAS IN THE LAST 12 MONTHS
65
Currency risk Commodity risk Interest risk0%
20%
40%
60%
80%
100%
A Higher Degree of You
bschool.pepperdine.edu/accesscapital
PERCENTAGE OF BUSINESSES THAT HAVE A FINANCIAL RISK MANAGEMENT POLICY
66
Yes No Unsure0%
20%
40%
60%
80%
100%
A Higher Degree of You
bschool.pepperdine.edu/accesscapital
THE CLOSEST PERCENTAGE OF RESPONDENTS EXPOSURE THAT THEY TYPICALLY HEDGE
67
25% 50% 75% 100%0%
20%
40%
60%
80%
100%
A Higher Degree of You
bschool.pepperdine.edu/accesscapital
ANNUAL REVENUES CHANGE FOR LAST 12 MONTHS: WHOLE SAMPLE
68
> 50%
41-50%
31-40%
21-30%
16-20%
11-15%6-10%
4-5%2-3%
Staye
d flat2-3%
4-5%6-10%
11-15%
16-20%
21-30%
31-40%
41-50%> 5
0%
Averag
e0%
5%
10%
15%
20%
25%
5%2% 1%
3% 3%2%
3% 2% 3%
23%
11%
6%
10%
5% 5% 4%3% 3%
6%4%
Decline Increase
A Higher Degree of You
bschool.pepperdine.edu/accesscapital
ANNUAL REVENUES CHANGE FOR LAST 12 MONTHS : REVENUES UNDER $5M
69
> 50%
41-50%
31-40%
21-30%
16-20%
11-15%6-10%
4-5%2-3%
Staye
d flat2-3%
4-5%6-10%
11-15%
16-20%
21-30%
31-40%
41-50%> 5
0%
Averag
e0%
5%
10%
15%
20%
25%
5%
2% 2%3% 3%
2%3%
2% 3%
23%
11%
5%
9%
5% 5% 4%3% 3%
7%
3%
Decline Increase
A Higher Degree of You
bschool.pepperdine.edu/accesscapital
ANNUAL REVENUES CHANGE FOR LAST 12 MONTHS : REVENUES FROM $5M TO $100M
70
21-30%
16-20%
11-15%6-10%
4-5%2-3%
Staye
d flat2-3%
4-5%6-10%
11-15%
16-20%
21-30%
31-40%
41-50%> 5
0%
Average
0%2%4%6%8%
10%12%14%16%18%20%
2%5%
2% 3% 4%2%
18%
11%
6%
14%
6%8% 7%
5%
1%
5%
8%
Decline Increase
A Higher Degree of You
bschool.pepperdine.edu/accesscapital
ANNUAL REVENUE CHANGE EXPECTATIONS (NEXT 12 MONTHS): WHOLE SAMPLE
71
> 50%
41-50%
21-30%
16-20%
11-15%6-10%
4-5%2-3%
Staye
d flat2-3%
4-5%6-10%
11-15%
16-20%
21-30%
31-40%
41-50%> 5
0%
Average
0%2%4%6%8%
10%12%14%16%
2%1% 1% 1% 2% 2% 1% 1%
15%13%
11%12%
7% 7% 7%
4% 3%
10%12%
Decline Increase
A Higher Degree of You
bschool.pepperdine.edu/accesscapital
ANNUAL REVENUE CHANGE EXPECTATIONS (NEXT 12 MONTHS): REVENUES UNDER $5M
72
> 50%
41-50%
21-30%
16-20%
11-15%6-10%
4-5%2-3%
Staye
d flat2-3%
4-5%6-10%
11-15%
16-20%
21-30%
31-40%
41-50%> 5
0%
Average
0%2%4%6%8%
10%12%14%16%
2%1% 1% 1% 2% 2% 1% 1%
14%13%
10%
12%
6%7%
7%
4% 4%
12% 12%
Decline Increase
A Higher Degree of You
bschool.pepperdine.edu/accesscapital
ANNUAL REVENUE CHANGE EXPECTATIONS (NEXT 12 MONTHS): REVENUES $5M TO $100M
73
> 50%
21-30%
16-20%6-10%
4-5%
Staye
d flat2-3%
4-5%6-10%
11-15%
16-20%
21-30%
31-40%
41-50%> 5
0%
Average
0%2%4%6%8%
10%12%14%16%18%
1% 1%2%
4%1%
16%
12%
15%
11% 12%
7%9%
4%
1%
4%
9%
Decline Increase
bschool.pepperdine.edu/accesscapital
VII. ABOUT THE RESPONDENTS
74
A Higher Degree of You
bschool.pepperdine.edu/accesscapital
DETAILS ABOUT THE RESPONDENTSGEOGRAPHIC LOCATION
75
A Higher Degree of You
bschool.pepperdine.edu/accesscapital
DETAILS ABOUT THE RESPONDENTS INDUSTRY
76
28%
13%9%8%7%
7%
6%5%
4%3% 3%2% 1% 2% Services
ConstructionRetail tradeFinance & real estateManufacturingInformation technology or servicesTransportation and warehousingHealth careWholesale tradeEducational servicesArts, entertainment or recreationForestry, fishing, hunting or agricultureUtilities & miningUnclassified establishments
A Higher Degree of You
bschool.pepperdine.edu/accesscapital
DETAILS ABOUT THE RESPONDENTS ANNUAL REVENUES
77
7% 5%3%
4%7%
10%15%
11%10%
9% 8%4% 3%1%
1% 3% $0 or pre-revenue stage$1 - $5,000$5,001 - $10,000$10,001 - $25,000$25,001 - $50,000$50,001 - $100,000$100,001 - $250,000$250,001 - $500,000$500,001 - $1,000,000$1,000,001 - $2,000,000$2,000,001 - $5,000,000$5,000,001 - $10,000,000$10,000,001 - $25,000,000$25,000,001 - $50,000,000$50,000,001 - $100,000,000$100,000,001 - $500,000,000
A Higher Degree of You
bschool.pepperdine.edu/accesscapital
DETAILS ABOUT THE RESPONDENTS ANNUAL INCOME
78
10%9%
6%
9%14%17%
15%
7%5% 3%
2%1% 1% 1% Negative (net loss)$1 - $5,000$5,001 - $10,000$10,001 -$25,000$25,001 - $50,000$50,001 - $100,000$100,001 - $250,000$250,001 - $500,000$500,001 - $1,000,000$1,000,001 - $2,000,000$2,000,001 - $5,000,000$5,000,001 - $50,000,000$50,000,001 - $100,000,000Greater than $100,000,000
A Higher Degree of You
bschool.pepperdine.edu/accesscapital
DETAILS ABOUT THE RESPONDENTS TOTAL BUSINESS ASSETS
79
3%10% 8%
9%
10%12%11%9%
8%6% 6%
3%2% 5%
$0 $1 - $5,000
$5,001 - $10,000 $10,001 - $25,000
$25,001 - $50,000 $50,001 - $100,000
$100,001 - $250,000 $250,001 - $500,000
$500,001 - $1,000,000 $1,000,001 - $2,000,000
$2,000,001 - $5,000,000 $5,000,001 - $10,000,000
$10,000,001 - $25,000,000 Greater than $25,000,000
A Higher Degree of You
bschool.pepperdine.edu/accesscapital
DETAILS ABOUT THE RESPONDENTS FIRM AGE
80
9% 8%7%
10%
18%20%
28%
Less than 1 year
At least 1 but less than 2
At least 2 but less than 3
At least 3 but less than 5
At least 5 but less than 10
At least 10 but less than 20
20 or more
A Higher Degree of You
bschool.pepperdine.edu/accesscapital
DETAILS ABOUT THE RESPONDENTS NUMBER OF FULL-TIME EMPLOYEES
81
8%
46%19%
10%4% 13%
0 1-2 3-5 6-10
11-15 More than 15
A Higher Degree of You
bschool.pepperdine.edu/accesscapital
DETAILS ABOUT THE RESPONDENTS NUMBER OF PART-TIME EMPLOYEES
82
43%
33%
13%5%2%
4%
0 1-2 3-5 6-10
11-15 More than 15
A Higher Degree of You
bschool.pepperdine.edu/accesscapital
DETAILS ABOUT THE RESPONDENTS PRIMARY BUSINESS ACTIVITY
83
32%
68%
Sales Service
A Higher Degree of You
bschool.pepperdine.edu/accesscapital
DETAILS ABOUT THE RESPONDENTS PERCENTAGE OF CERTIFIED WOMEN-OWNED BUSINESSES
84
Whole sample < $5 million $5 million -$100 million0%
20%
40%
60%
80%
100%
19% 20%10%
A Higher Degree of You
bschool.pepperdine.edu/accesscapital
About Pepperdine Private Capital Markets ProjectThe Pepperdine Private Capital Markets Project at the Graziadio School of Business and Management is the first simultaneous, comprehensive, and on-going investigation of the major private capital market segments. The research seeks to understand the true cost of private capital across market types and the investment expectations of privately-held business owners; providing lenders, investors and the businesses that depend on them with critical data to make optimal investment and financing decisions, and better determine where the opportunities to create lasting economic value may be realized. Download reports and find more information at http://bschool.pepperdine.edu/privatecapital. About Pepperdine University’s Graziadio School of Business and Management A leader in cultivating entrepreneurship and digital innovation, The Graziadio School of Business and Management of Pepperdine University focuses on the real-world application of MBA-level business concepts. The Graziadio School provides student-focused, globally-oriented education through part-time, full-time, and Executive MBA programs at our eight campuses, as well as through online and hybrid formats. In addition, The Graziadio School offers a variety of Master of Science programs, a Bachelor of Science in Management degree completion program, Presidential and Key Executives MBA and executive education certificate programs. Follow the Graziadio School on Facebook, on Twitter at @GraziadioSchool and Linkedin.
85
A Higher Degree of You
bschool.pepperdine.edu/accesscapital
86
Thank YouCraig Everett, Ph.D.
Director,Pepperdine Private Capital Markets Projecthttp://bschool.pepperdine.edu/privatecapital