Nearly all middle-market companies plan to expand over the next 12 months, according to a recent study by the National Center for the Middle Market and the Milken Institute. Yet, the majority of middle-market firms surveyed do not anticipate taking on additional debt to achieve their growth goals. In fact, most companies with annual revenues between $10 million and $1 billion reported planning to use cash on hand to fund expansion and new projects in the coming year. Only about two in 10 small and mid-sized businesses plan to take on debt to finance growth.
Among the larger firms—with revenues of $100 million to $1 billion—70 percent plan to finance growth with existing resources. The statistics, tables and charts to follow offer a snapshot of how middle-market companies fund growth and feel about debt.