Private Companies Accessing Capital: Trendsetter Barometer Special Topic

October 2010
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Private companies have plenty of capital ---- Many plan to spend it on growth

At a glance

After a fiscally conservative couple of years spent paying down debt and building up cash reserves, private-company CEOs are shifting their focus from core concerns to more ambitious goals.

Private companies have plenty of capital—Many plan to spend it on growth

After a fiscally conservative couple of years spent paying down debt and building up cash reserves, private-company CEOs are shifting their focus from core concerns (operations, personnel) to more ambitious goals (market expansion, mergers and acquisitions). While the majority plan to fund key initiatives via traditional lenders, some private companies have begun to explore additional funding sources, including strategic alliances, joint ventures, and suppliers.

Special topic highlights

  • Most Trendsetter private companies expect good access to capital over the next couple of years.
  • 37% of surveyed companies lacked sufficient capital to fund certain key initiatives over the past two years.
  • 29% say access to capital will become more important over the next two years.
  • Some companies are starting to consider a broader range of capital sources.