Business Leaders Are Embracing Private Equity Partners, Citizens Survey Finds
03 April 2024 - 12:01AM
Business Wire
Positive perception of sponsors could support
dealmaking in the year ahead
Private equity entered 2024 ready to shop, and a study released
today by Citizens reveals many business leaders may be open to
making a deal.
Nearly three quarters (72%) of small- and mid-size businesses in
the U.S. view the private equity industry as a source of current or
future partnership and funding, according to the survey. This data
comes on the heels of Citizens’ 2024 M&A outlook, which found
that sponsors anticipate higher deal volumes in 2024 and expect to
buy more than they did in 2023.
“With $2.5 trillion of private equity dry powder on the
sidelines, elevated buyer enthusiasm and a positive perception of
sponsors should support a constructive environment for dealmaking,”
said Don McCree, vice chair and head of commercial banking,
Citizens. “At Citizens, our advisors partner with corporate and PE
clients every day to find solutions and execute transactions. We
are working closely with our clients to help them navigate and take
advantage of the evolving deal landscape.”
The Citizens survey of more than 530 decision makers at small-
and mid-size businesses in the U.S. was conducted in early 2024 and
focused on business leaders’ outlook for economic conditions and
assessment of key business inputs in the year ahead. Other key
findings include:
- Small and mid-size businesses are ready to hire in 2024.
Sixty-one percent of decision makers at small- and mid-size
businesses expect their companies to add talent in 2024, and 40
percent anticipate hiring more personnel than they did last year.
Consistent with the findings of the latest Citizens Business
Conditions Index™, the robust demand for labor indicates business
conditions remain constructive despite lingering anxiety about
rising costs. Forty-five percent of respondents expect to be more
concerned about the impact of inflation on their business in the
year ahead, while just 13 percent expect to be less concerned.
- Despite uncertainty, business leaders are not overly
concerned about political instability. While political
uncertainty is typically perceived as a headwind for businesses,
only 9 percent of respondents expect the 2024 U.S. election cycle
to have a negative impact on their company’s growth plans in the
year ahead. In fact, 64 percent of respondents actually expect the
election cycle to have a positive impact on business growth in
2024.
- Geopolitical tensions are also not considered a major
risk. Despite heightened geopolitical tensions across the
globe, fewer than 40 percent of respondents expect geopolitical
issues to pose a serious threat to their company’s financial
performance in 2024.
- However, business leaders remain worried about supply chain
disruptions. Concerns about supply chain disruptions persist.
Thirty-eight percent of decision-makers are more concerned about
the impact of supply chain disruptions in 2024 than they were last
year, while 51 percent are similarly concerned, and just 11 percent
are less concerned.
- Artificial intelligence is expected to be among the most
impactful technologies for business in 2024. Decision makers at
small- and mid-size companies expect AI to be among the most
impactful technologies for business in the year ahead. These
findings are consistent with insights gleaned from a recent
Citizens study that assessed AI trends in financial
management.
“We view private equity as a growing client base,” said McCree.
“Our teams have deep relationships with corporate clients as well
as private sources of capital, which are a key part of the
financial system. Over the last several years, we have expanded our
capabilities, particularly in Capital Markets and Advisory and
Wealth Management, so we can offer a range of solutions to our
clients.”
Methodology
Business leaders at 538 small and mid-size U.S. businesses who
are directly involved in corporate decision-making completed a
web-based survey in January 2024.
Citizens is a trusted strategic and financial adviser,
consistently delivering clear and objective advice. The Citizens
approach puts clients first by offering great ideas combined with
thorough market knowledge and excellent execution, to help our
clients enhance their business and reach their potential. For more
information, please visit the Citizens website.
About Citizens Financial Group,
Inc.
Citizens Financial Group, Inc. is one of the nation’s oldest and
largest financial institutions, with $222.0 billion in assets as of
December 31, 2023. Headquartered in Providence, Rhode Island,
Citizens offers a broad range of retail and commercial banking
products and services to individuals, small businesses,
middle-market companies, large corporations and institutions.
Citizens helps its customers reach their potential by listening to
them and by understanding their needs in order to offer tailored
advice, ideas and solutions. In Consumer Banking, Citizens provides
an integrated experience that includes mobile and online banking, a
full-service customer contact center and the convenience of
approximately 3,200 ATMs and approximately 1,100 branches in 14
states and the District of Columbia. Consumer Banking products and
services include a full range of banking, lending, savings, wealth
management and small business offerings. In Commercial Banking,
Citizens offers a broad complement of financial products and
solutions, including lending and leasing, deposit and treasury
management services, foreign exchange, interest rate and commodity
risk management solutions, as well as loan syndication, corporate
finance, merger and acquisition, and debt and equity capital
markets capabilities. More information is available at
www.citizensbank.com or visit us on X (formerly Twitter), LinkedIn
or Facebook.
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version on businesswire.com: https://www.businesswire.com/news/home/20240402881488/en/
Frank Quaratiello 617.543.5810
frank.quaratiello@citizensbank.com
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