Private company outlook: Raising capital

We recently conducted our first Pulse Survey. The goal? To gauge private company leaders’ perspectives on opportunities and risks—in varying business areas—now and in the near future. And this survey's focus? Raising capital.

Our 100 survey respondents represented the C-level, presidents, board members, and partners/owners, and all sat at private companies in the US with annual revenues of US$100 million to US$1 billion+. Their input reflected where their capital investment priorities lie, as well as the risks that inflation, rising interest rates and talent shortages pose to their business. While raising capital will remain a primary funding source for private companies and their growth initiatives, there are challenges attached to the venture. Learn more about the recent navigation of financial risks and opportunities below.

Private companies are an extraordinarily important cross section of the U.S. economy. As their leadership teams navigate the impact of financial headwinds, the hybrid work environment, and the pace of digitization, capital needs appear to remain high. The survey results indicate private companies are looking for capital solutions that allow them to manage near-term needs while remaining focused on long-term stability and growth.

– Wolfe Tone, vice chair, and U.S. and Global Deloitte Private leader

The findings also suggest selling or finding a minority investor or investors may be an attractive exit strategy for companies that believe they have reached a growth plateau. In addition to inflation and rising interest rates, these companies are also likely feeling the pressure from the pace of digital transformation, talent shortages, and increased market competition, as a result we may see more companies assessing their readiness for acquisition in the next several months.

– Kevan Flanigan, U.S. Deloitte Private Risk & Financial Advisory leader