q4 2013 pca - access to capital: a dun & bradstreet...
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11
PCA Index Survey ResponsesFourth Quarter 2013
Craig Everett, Ph.D., MBA Director, Pepperdine Private Capital Markets Projec t
© 2012 Pepperdine University. All rights reserved. Pepperdine Private Capital Access Index (“PCA Index”) and Private
Capital Demand Index (“PCD Index”) are trademarks of Pepperdine University. PCA Index and PCD Index content is the
intellectual property of Pepperdine University or its third party content providers. Any copying, republication or
redistribution of PCA Index or PCD 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 Index content, or for any actions taken in reliance thereon.
22
This research was made possible with the support of Dun & Bradstreet Credibility Corp., the leading provider of credit
building and credibility solutions for businesses.
DUN & BRADSTREET CREDIBILITY CORP.Jeffrey Stibel, Chairman and Chief Executive Officer
Judy Hackett, Chief Marketing OfficerAaron Stibel, Senior Vice President, Technology
Liz Gengl, Director, Marketing and CommunicationsBrenda Gary, Vice President, Marketing Operations
Lauren Simpson, Marketing and Communications ManagerBernice Brennan, Manager, Creative Services & Marketing Communications
Trenice Taylor, Marketing Manager
33
ACKNOWLEDGEMENTS
I’d also like to thank the following people at The Graziadio School of Business and Management for their contributions:
Dean Linda LivingstoneAssociate Dean David M. Smith
Mike Sims, Executive Officer, CERJohn K. Paglia, Associate Professor of Finance
Douglass Gore, Director of Public RelationsMark Chun, Director, Center for Applied Research
Bill Bleuel, Professor of Decision Sciences Irina Shaykhutdinova, Research Analyst
and consultant, Simon James, Ph.D.
44
I. About the Private Capital Access (PCA) Index……...….…5
II. Demand for external financing……………………..….….14
III. Accessibility/success rate of raising new capital……...…21
IV. Satisfaction rates for various capital sources………..…..29
V. Expected demand for external financing……………..…..34
VI. Expected capital access (success) rates……………..….39
VII. Hiring/growth outlooks and financing failure impacts…45
VIII.About the respondents…………………………………..…54
Outline
55
The Pepperdine Private Capital Access Index (PCA) and Private
Capital Demand Index (PCD) are quarterly indicators produced by the
Graziadio School of Business and Management at Pepperdine
University, and with the support of Dun & Bradstreet Credibility Corp.
The index is designed to measure the demand for, activity, and health
of the private capital markets. The purpose of the two indices 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
66
• 30 questions
• Invite to participate distributed to sample from Dun& Bradstreet Credibility Corp.’s business database
• 3,175 completed responses
• Where relevant, responses are segmented byrevenues sizes (<$5 million; $5 million to $100million)
• Responses collected from Oct 15 – Nov 6
About the Q3 2013 Private Capital
Access (PCA) Index Survey
77
Private Capital Access (PCA) and Private Capital
Demand (PCD) Index Results – Whole Sample
Total Market PCA Index PCD Index
2012-Q2 27.8 37.0
2012-Q3 27.0 36.5
2012-Q4 27.3 35.1
2013-Q1 25.6 32.7
2013-Q2 26.8 33.4
2013-Q3 27.5 31.7
2013-Q4 27.8 32.8
Change 0.3 1.1
Pct. Change 1.0% 3.6%
88
Private Capital Access (PCA) and Private Capital
Demand (PCD) Index Results – Whole Sample
2012-Q2 2012-Q3 2012-Q4 2013-Q1 2013-Q2 2013-Q3
PCA Index 27.8 27.0 27.3 25.6 26.8 27.5
PCD Index 37.0 36.5 35.1 32.7 33.4 31.7
0
10
20
30
40
50
60
70
80
90
100
99
Small Business PCA and PCD Index Results
(< $5M in Revenues)
Total Market PCA Index PCD Index
2012-Q2 26.6 38.8
2012-Q3 26.0 38.0
2012-Q4 26.3 36.5
2013-Q1 24.6 33.2
2013-Q2 26.3 34.3
2013-Q3 26.8 32.3
2013-Q4 26.6 33.9
Change -0.2 1.6
Pct. Change -0.6% 5.0%
1010
Small Business PCA and PCD Index Results
(< $5M in Revenues)
2012-Q2 2012-Q3 2012-Q4 2013-Q1 2013-Q2 2013-Q3
PCA Index 26.6 26.0 26.3 24.6 26.3 26.8
PCD Index 38.8 38.0 36.5 33.2 34.3 32.3
0
10
20
30
40
50
60
70
80
90
100
1111
Lower Middle Market PCA and
PCD Index Results
($5M – $100M in Revenues)
Total Market PCA Index PCD Index
2012-Q2 34.7 32.3
2012-Q3 33.5 33.1
2012-Q4 32.7 31.5
2013-Q1 31.9 30.6
2013-Q2 34.3 28.7
2013-Q3 34.7 27.6
2013-Q4 33.7 26.3
Change -1.0 -1.3
Pct. Change -2.9% -4.7%
1212
Lower Middle Market PCA and PCD Index
Results
($5M – $100M in Revenues)
2012-Q2 2012-Q3 2012-Q4 2013-Q1 2013-Q2 2013-Q3
PCA Index 34.7 33.5 32.7 31.9 34.3 34.7
PCD Index 32.3 33.1 31.5 30.6 28.7 27.6
0
10
20
30
40
50
60
70
80
90
100
1313
Annual Revenue Change Expectations
by Revenue Size
Q3, 2012 Q4, 2012 Q1, 2013 Q2, 2013 Q3, 2013 Q4, 2013
Whole sample 7.3% 5.8% 6.4% 6.2% 5.4% 7.0%
< $5 million 7.1% 5.7% 5.9% 6.3% 5.2% 7.0%
$5 -$100 million 7.8% 6.7% 7.1% 5.3% 6.5% 8.1%
5%
6%
7%
8%
9%
10%
1414
II. Demand for external financing
1515
Demand for Financing by Purpose and Size
(% with any need reported)
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
Planned
growth or
expansion,
including
acquisitions
(not yet
realized)
Working
capital
fluctuations
Growth due
to increased
demand
(already
realized)
Finance
worsening
operating
conditions
Refinance
existing loans
or equity
Withdraw
wealth for
owners
Whole sample 52.3% 51.5% 45.1% 34.7% 29.4% 23.1%
< $5 million 52.4% 52.4% 45.4% 36.2% 29.6% 23.0%
$5 -$100 million 53.8% 45.6% 44.0% 25.5% 27.1% 23.8%
1616
Strength of Demand for Financing
(among those indicating demand)
Scale 1-4: slight, moderate, high, extremely high need
0.0
1.0
2.0
3.0
4.0
Planned
growth or
expansion,
including
acquisitions
(not yet
realized)
Refinance
existing loans
or equity
Working
capital
fluctuations
Growth due to
increased
demand
(already
realized)
Finance
worsening
operating
conditions
Withdraw
wealth for
owners
Whole sample 2.4 2.3 2.2 2.1 2.1 2.0
< $5 million 2.4 2.3 2.2 2.1 2.2 2.0
$5 -$100 million 2.1 2.1 2.0 1.9 2.0 2.0
1717
Respondents Indicating High and Extremely
High Demand for Financing
(among those indicating demand)
0%20%40%60%80%
100%
Planned
growth or
expansion,
including
acquisitions
(not yet
realized)
Refinance
existing
loans or
equity
Working
capital
fluctuations
Finance
worsening
operating
conditions
Growth due
to increased
demand
(already
realized)
Withdraw
wealth for
owners
Whole sample 43.9% 42.0% 36.9% 36.1% 35.3% 31.7%
< $5 million 45.9% 42.6% 38.0% 36.6% 36.7% 32.0%
$5 -$100 million 29.6% 35.1% 31.2% 27.3% 23.7% 26.7%
1818
Percentage Indicating “Yes” to “Is the current
business financing environment restricting…”
0%
20%
40%
60%
80%
100%
Growth opportunities for your business? Your ability to hire new employees?
58%
48%
60%
50%44%
33%
Whole sample < $5 million $5 -$100 million
1919
Trade Accounts (Accounts Receivable) Payment
Period Trends Over the Past Three Months
0%
20%
40%
60%
80%
100%
Accelerated (receiving
payments from customers
faster than three months
ago)
Slowed (receiving payments
from customers slower than
three months ago)
Stayed the same
8.3%
30.3%
61.4%
8.3%
31.1%
60.6%
9.3%
27.0%
63.7%
Whole sample < $5 million $5 million -$100 million
2020
Percentage of Respondents Who Attempted
to Raise Outside Financing
in the Last Three Months
0%
20%
40%
60%
80%
100%
Whole sample < $5 million $5 -$100 million
28% 28% 32%
2121
III. Accessibility/success rate
2222
Is it Difficult or Easy to Raise
New External Financing?
Equity financing Debt financing
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
Difficult Neither
difficult
nor
easy
Easy
Whole sample 66.5% 15.8% 17.7%
< $5 million 68.8% 16.1% 15.1%
$5 -$100 million 53.2% 13.2% 33.6%
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
Difficult Neither
difficult
nor easy
Easy
Whole sample 65.2% 15.5% 19.4%
< $5 million 68.7% 15.3% 16.0%
$5 -$100 million 45.3% 16.6% 38.1%
2323
Financing Success Rates by Type and Business
Size for Prior Three Months
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Friends
and
family
Grants
(SBIR,
STTR,etc.)
Crowd
funding
Presale/Donate
Crowd
funding
(Equity)
Crowd
funding
(Debt)
Trade
credit
Credit
card -
pers.
Loan -
pers.
Credit
card -
biz.
Lease Bank
loan -
biz.
CDFI/
Credit
union
Asset
based
lender
Factor Angel
capital
Vent.
capital
Private
equity
group
Mezz.
lender
Hedge
fund
Whole sample 72% 31% 29% 14% 6% 63% 65% 53% 63% 57% 42% 17% 25% 40% 18% 15% 23% 12% 5%
< $5 million 71% 30% 28% 13% 7% 61% 63% 52% 62% 51% 34% 15% 21% 40% 15% 8% 18% 7% 5%
$5 -$100 million 76% 42% 25% 33% 0% 81% 85% 63% 75% 81% 75% 28% 50% 60% 44% 60% 60% 38% 0%
2424
Percentage of Those Who Attempted to Raise
Financing by Type of Financing for Prior Three
Months
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
Friends
and
family
Grants
(SBIR,
STTR,etc.)
Crowd
funding
Presale/Donate
Crowd
funding
(Equity)
Crowd
funding
(Debt)
Trade
credit
Credit
card -
pers.
Loan -
pers.
Credit
card -
biz.
Lease Bank
loan -
biz.
CDFI/
Credit
union
Asset
based
lender
Factor Angel
capital
Vent.
capital
Private
equity
group
Mezz.
lender
Hedge
fund
Whole sample 41.2% 30.3% 15.8% 12.6% 12.4% 36.0% 41.8% 42.7% 49.9% 28.5% 57.1% 29.3% 32.7% 19.0% 16.1% 15.6% 15.8% 10.4% 9.4%
< $5 million 43.1% 32.3% 17.2% 13.6% 13.6% 36.9% 46.1% 44.7% 53.6% 28.4% 55.1% 31.0% 33.2% 20.1% 17.1% 16.5% 16.5% 10.4% 10.4%
$5 -$100 million 34.0% 14.2% 5.7% 7.5% 5.7% 34.0% 20.8% 32.1% 32.1% 28.3% 71.7% 19.8% 31.1% 13.2% 11.3% 11.3% 12.3% 9.4% 3.8%
2525
Main Purpose for Raising or Attempting
to Raise Financing
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
Growth or
expansion
(incl.
acquis.)
Working
capital
fluctuations
Replacing
equipment
or facilities
unrelated
to growth
or
expansion
Refinancing
existing
loans or
equity
Finance
worsening
operations
conditions
Withdraw
wealth for
owners
Other
Whole sample 39.3% 29.5% 11.1% 9.6% 5.0% 0.8% 4.6%
< $5 million 38.7% 31.1% 10.4% 9.2% 5.6% 0.3% 4.7%
$5 -$100 million 43.4% 22.6% 11.3% 14.2% 2.8% 3.8% 1.9%
2626
Reasons for Businesses Not Attempting to Raise
External Financing (Multiple Selections)
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Enough
cash flow
Sufficient
financing
in place
Weak
economy
Business
would be
rejected
Lack of
expertise
Not
enough
time
Waiting
for
cheaper
financing
Loss of
control /
flexibility
Cease
operation
/
liquidate
Other
Whole sample 51% 25% 18% 17% 10% 9% 6% 4% 1% 8%
< $5 million 49% 23% 18% 19% 11% 9% 6% 4% 2% 8%
$5 -$100 million 66% 39% 12% 7% 3% 4% 6% 3% 0% 5%
2727
Percentage of Owners Who Transferred
Personal Assets to Business
Over Prior Three Months
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Yes No Unsure
37%
61%
1%
40.0%
58.9%
1.1%
19.3%
80.4%
0.3%
Whole sample < $5 million $5 -$100 million
2828
Types of Personal Assets Transferred to Business
During Prior Three Months
(Multiple Selections)
0%
20%
40%
60%
80%
100%
Personal
savings /
investments
Personal
credit card
purchases
Personal loan Cash from the
sale of
personal
assets
Home equity
loan
Other
Whole sample 74% 43% 18% 22% 9% 5%
< $5 million 74% 44% 18% 22% 8% 5%
$5 -$100 million 77% 33% 20% 23% 18% 5%
2929
IV. Satisfaction rates
3030
Pricing and Contract Terms Satisfaction Rates
(for those with a successful raise)
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Friends
and
family
Grants
(SBIR,
STTR,etc.)
Crowd
funding
Presale/Donate
Crowd
funding
(Equity)
Crowd
funding
(Debt)
Trade
credit
Credit
card -
pers.
Loan -
pers.
Credit
card -
biz.
Lease Bank
loan -
biz.
CDFI/
Credit
union
Asset
based
lender
Factor Angel
capital
Vent.
capital
Private
equity
group
Mezz.
lender
Hedge
fund
Whole sample 89% 92% 81% 80% 33% 87% 48% 69% 66% 79% 85% 79% 71% 50% 79% 70% 71% 33% 50%
3131
General Financing Process Satisfaction Rates
(by Outcome)
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Friends
and
family
Grants
(SBIR,
STTR,etc.)
Crowd
funding
Presale/Donate
Crowd
funding
(Equity)
Crowd
funding
(Debt)
Trade
credit
Credit
card -
pers.
Loan -
pers.
Credit
card -
biz.
Lease Bank
loan -
biz.
CDFI/
Credit
union
Asset
based
lender
Factor Angel
capital
Vent.
capital
Private
equity
group
Mezz.
lender
Hedge
fund
Successful 74% 79% 84% 70% 0% 80% 58% 54% 69% 77% 75% 70% 60% 51% 60% 58% 67% 29% 33%
Unsuccessful 26% 17% 13% 7% 5% 24% 17% 13% 18% 19% 9% 15% 10% 18% 11% 13% 14% 9% 9%
3232
Percentage of Those Satisfied with Time Elapsed
from Point of First Contact until Funds Were
Received (for those successful raises)
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Friends
and
family
Grants
(SBIR,
STTR,
etc.)
Crowd
funding
Presale/
Donate
Crowd
funding
(Equity)
Crowd
funding
(Debt)
Trade
credit
Credit
card -
pers.
Loan -
pers.
Credit
card -
biz.
Lease Bank
loan -
biz.
CDFI/
Credit
union
Asset
based
lender
Factor Angel
capital
Vent.
capital
Private
equity
group
Mezz.
lender
Whole sample 76% 63% 84% 80% 50% 80% 71% 60% 77% 79% 69% 67% 72% 55% 64% 64% 75% 33%
3333
Percentage of Those Unsuccessful Who Feel the
General Category of Financing is a Still a Good
Fit for Their Business
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Friends
and
family
Grants
(SBIR,
STTR,etc.)
Crowd
funding
Presale/Donate
Crowd
funding
(Equity)
Crowd
funding
(Debt)
Trade
credit
Credit
card -
pers.
Loan -
pers.
Credit
card -
biz.
Lease Bank
loan -
biz.
CDFI/
Credit
union
Asset
based
lender
Factor Angel
capital
Vent.
capital
Private
equity
group
Mezz.
lender
Hedge
fund
Whole sample 29% 63% 46% 45% 30% 58% 36% 47% 57% 51% 66% 62% 58% 44% 52% 49% 41% 41% 41%
3434
V. Expected demand for external
financing
3535
Percentage of Businesses Planning to Raise
Financing in the Next Six Months
0%
20%
40%
60%
80%
100%
Yes No Unsure
28%
54%
18%
29%
53%
19%24%
64%
12%
Whole sample < $5 million $5 million -$100 million
3636
Percentage of Respondents Indicating Demand
for New Financing in the Next Six Months
0%
20%
40%
60%
80%
100%
Planned
future
growth or
expansion
Expected
working
capital
fluctuations
Growth due
to expected
increased
demand
Expected
worsening
operating
conditions
Refinance
existing
loans or
equity
Withdraw
wealth for
owners
Whole sample 54% 50% 47% 31% 29% 19%
< $5 million 54% 51% 48% 32% 29% 20%
$5 million -$100 million 51% 40% 40% 22% 23% 16%
3737
Strength of Expected Demand for New External
Financing in the Next Six Months
(Scale 1-4: Slight, Moderate, High, Extremely High)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
Refinance
existing
loans or
equity
Planned
future
growth or
expansion
Expected
working
capital
fluctuations
Growth due
to expected
increased
demand
Expected
worsening
operating
conditions
Withdraw
wealth for
owners
Whole sample 2.4 2.3 2.2 2.2 2.1 2.1
< $5 million 2.4 2.4 2.2 2.3 2.1 2.1
$5 million -$100 million 2.3 2.0 2.0 1.9 1.9 2.0
3838
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%
Planned
future
growth or
expansion
Refinance
existing
loans or
equity
Growth due
to expected
increased
demand
Expected
working
capital
fluctuations
Withdraw
wealth for
owners
Expected
worsening
operating
conditions
Whole sample 43.5% 43.3% 37.7% 36.3% 33.8% 32.6%
< $5 million 45.6% 44.3% 39.6% 38.0% 35.5% 33.6%
$5 million -$100 million 26.1% 33.9% 22.4% 23.5% 27.0% 25.9%
3939
VI. Expected access rates
4040
Do You Expect It Would Be Easy or Difficult to
Raise New Financing in the Next Six Months?
Equity financing Debt financing
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
Difficult Neither
difficult
nor
easy
Easy
Whole sample 65.5% 14.3% 20.2%
< $5 million 67.8% 13.9% 18.3%
$5 -$100 million 50.4% 17.4% 32.2%
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
Difficult Neither
difficult
nor easy
Easy
Whole sample 63.1% 13.9% 22.9%
< $5 million 66.5% 13.6% 20.0%
$5 -$100 million 42.6% 16.3% 41.1%
4141
Likely Sources of Financing
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Friends
and
family
Grants
(SBIR,
STTR,etc.)
Crowd
funding
Presale/Donate
Crowd
funding
(Equity)
Crowd
funding
(Debt)
Trade
credit
Credit
card -
pers.
Loan -
pers.
Credit
card -
biz.
Lease Bank
loan -
biz.
CDFI/
Credit
union
Asset
based
lender
Factor Angel
capital
Vent.
capital
Private
equity
group
Mezz.
lender
Hedge
fund
Whole sample 35% 38% 35% 19% 10% 8% 25% 33% 43% 33% 60% 36% 32% 17% 24% 22% 24% 13% 7%
4242
Main Purpose for Raising Expected Financing
0%
20%
40%
60%
80%
100%
Growth or
expansion
(incl.
acquisition)
Working
capital
fluctuations
Replacing
equipment
or facilities
unrelated
to growth
or
expansion
Refinancing
existing
loans or
equity
Finance
worsening
operations
conditions
Withdraw
wealth for
owners
Other
Whole sample 54.5% 21.2% 7.6% 8.6% 2.5% 1.0% 4.5%
< $5 million 54.3% 22.0% 7.0% 8.8% 2.5% 0.9% 4.5%
$5 -$100 million 56.3% 15.0% 13.8% 8.8% 3.8% 1.3% 1.3%
4343
Level of Confidence for Successful Financing(Scale 0-4: none; some; moderately; very; completely)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
Friends
and
family
Grants
(SBIR,
STTR,etc.)
Crowd
funding
Presale/Donate
Crowd
funding
(Equity)
Crowd
funding
(Debt)
Trade
credit
Credit
card -
pers.
Loan -
pers.
Credit
card -
biz.
Lease Bank
loan -
biz.
CDFI/
Credit
union
Asset
based
lender
Factor Angel
capital
Vent.
capital
Private
equity
group
Mezz.
lender
Hedge
fund
Whole sample 2.1 1.6 2.1 1.6 1.3 1.0 2.1 1.6 1.9 2.2 1.6 1.3 1.4 1.9 1.3 1.4 1.5 1.1 1.3
< $5 million 2.1 1.6 2.1 1.6 1.2 1.1 2.1 1.6 1.9 2.1 1.5 1.3 1.3 1.9 1.3 1.3 1.4 1.0 1.2
$5 -$100 million 2.1 1.6 2.2 1.6 1.5 0.5 1.9 1.6 1.6 3.0 2.2 1.5 1.8 1.5 1.1 1.6 1.9 1.3 2.5
4444
Reasons for Not Planning on Raising Financing
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Enough
cash flow
Sufficient
financing
in place
Weak
economy
Business
would be
rejected
Lack of
expertise
Not
enough
time
Waiting
for
cheaper
financing
Loss of
control /
flexibility
Cease
operation
/
liquidate
Other
Whole sample 51% 25% 18% 17% 10% 9% 6% 4% 1% 8%
< $5 million 49% 23% 18% 19% 11% 9% 6% 4% 2% 8%
$5 -$100 million 66% 39% 12% 7% 3% 4% 6% 3% 0% 5%
4545
VII. Hiring / growth outlooks and
financing failure impacts
4646
Number of Employees Planned to Be Hired in
the Next Six Months
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
0 1-2 3-5 6-10 11-15 16-20 21-30 31-40 41-50 76 -
100
101 -
200
More
than
200
Whole sample 45% 30% 14% 5% 2% 1% 1% 1% 0% 0% 0% 0%
< $5 million 47% 31% 13% 5% 1% 1% 1% 0% 0% 0% 0% 0%
$5 million -$100 million 27% 22% 22% 13% 6% 2% 2% 3% 2% 1% 1% 1%
4747
Impacts of Unsuccessful Financing Event in the
Next Six Months for Those Planning to Raise
Capital (Multiple selections)
0%
20%
40%
60%
80%
100%
Slower business
growth
Hire fewer new
employees than
planned
Reduce number
of employees
(layoffs)
Sell business
assets or shut
down
No expected
impacts on
growth,
business size,
or hiring plans
Whole sample 67% 53% 20% 17% 16%
< $5 million 67% 53% 20% 18% 16%
$5 million -$100 million 63% 51% 18% 11% 19%
4848
Annual Revenues Change for Last 12 Months:
Whole Sample
-0.5%
6%
2%3%
4% 4%3%
5%3% 3%
23%
8%7%
8%
4% 4% 4%3%
2%
5%
-4%
1%
6%
11%
16%
21%
26%
Decline Increase
4949
Annual Revenues Change for Last 12 Months :
Revenues Under $5M
-1.2%
7%
2%3%
4% 4%3%
5%
3% 3%
24%
8%
6%7%
4% 3% 3%3%
2%
5%
-4%
1%
6%
11%
16%
21%
26%
Decline Increase
5050
Annual Revenues Change for Last 12 Months :
Revenues from $5M to $100M
4%
2% 2%2%
4%
2%3% 3%
3%
17%
8%
10%11%
7%
6%7%
3%
1%
6%
4.2%
-4%
1%
6%
11%
16%
21%
Decline Increase
5151
Annual Revenue Change Expectations
(Next 12 Months): Whole Sample
2%
1% 1% 2% 2% 2%3%
1%3%
23%
14%
9%10%
7%6%
4%
2% 2%
7% 7.0%
-4%
1%
6%
11%
16%
21%
26%
Decline Increase
5252
Annual Revenue Change Expectations
(Next 12 Months): Revenues Under $5M
1% 1% 1% 2%2% 3%
1%2%
24%
14%
9%10%
7%6%
4%
2% 2%
8%7.0%
-4%
1%
6%
11%
16%
21%
26%
Decline Increase
5353
Annual Revenue Change Expectations
(Next 12 Months): Revenues $5M to $100M
1%1%
3%
2%1%
2%2%
4%
17%
12%
8%
14%
11%
8%
3%4%
2%
5%
8.1%
-4%
1%
6%
11%
16%
21%
Decline Increase
5454
VIII. About the Respondents
5555
Details About the RespondentsGeographic Location
Less than or equal to 1011 - 2526 - 5051 - 7576 - 100101 - 150151 - 200more than 200
CA
OR
WA
MT ND MN
ID
WY
SD
NV
UT
AZ
CO
NM
TX
NE
KS
OK AR
LA
MS AL
FL
GA
TN SC
NC
VA WV
KY MO
IL
IA
WI MI
IN OH
MD
PA NJ
NY
ME
NH VT
MA
RI CT
HI AK
5656
Details About the RespondentsPercentage of Respondents Who Feel Their State Supports
Business Policies That Benefit Their Business
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Yes No
51% 49%
5757
Details About the RespondentsPercentage of Respondents Who Feel Their State Should Be
More Involved in Making Capital More Accessible to
Businesses
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Yes No
68%
32%
5858
Details About the RespondentsPercentage of Respondents Who Feel That They Have Access
to Information about Available Capital Programs That Their
Business Could Be Participating in Their State Today
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Yes No
44%
56%
5959
Details About the Respondents
Industry
32%
10%
9%9%
7%
7%5%
4%3%3%
4% 3% 3% 1%
Services
Construction
Retail trade
Finance & real estate
Manufacturing
Information technology or services
Health care
Wholesale trade
Unclassified establishments
Educational services
Arts, entertainment or recreation
Transportation and warehousing
Forestry, fishing, hunting or agriculture
Utilities & mining
6060
Details About the Respondents
Annual Revenues
27%
27%12%
19%
5%4%
2% 1% 3% $1 - $100,000
$100,001 - $500,000
$500,001 - $1,000,000
$1,000,001 - $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
6161
Details About the Respondents
Annual Income
7%
53%
28%
5% 6%
1% Negative (net loss)
$0 - $100,000
$100,001 - $500,000
$500,001 - $1,000,000
$1,000,001 - $5,000,000
More than $5,000,000
6262
Details About the Respondents
Firm age
6% 6%6%
8%
15%
22%
37%
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
6363
Details About the Respondents
Number of Employees
37%
23%
15%
7%
3% 4%4%3%
2% 2% 1-2 3-5
6-10 11-15
16-20 21-30
31-50 51-100
101-200 More than 200
6464
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 Bu siness and Management Founded on the core values of integrity, stewardship, courage, and compassion, Pepperdine University’s Graziadio (GRAT-ZEE-ah-DEE-oh) School of Business and Management has been developing values-centered leaders and advancing responsible business practice since 1969. Student-focused, experience-driven, and globally-oriented, the Graziadio School offers fully accredited top-ranked MBA, Masters of Science, and bachelor’s completion business programs. More information found at http://bschool.pepperdine.edu/newsroom/.
6565
THANK YOU!
Craig Everett, Ph.D., MBA Director, Pepperdine Private Capital Markets Project
http://bschool.pepperdine.edu/[email protected]
310.506.8543