The Capital-Without-Debt Quandary

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.

Chief Executive :Chief Executive magazine (published since 1977) is the definitive source that CEOs turn to for insight and ideas that help increase their effectiveness and grow their business. Chief Executive Group also produces e-newsletters and online content at chiefexecutive.net and manages Chief Executive Network and other executive peer groups, as well as conferences and roundtables that enable top corporate officers to discuss key subjects and share their experiences within a community of peers. Chief Executive facilitates the annual “CEO of the Year,” a prestigious honor bestowed upon an outstanding corporate leader, nominated and selected by a group of peers, and is known throughout the U.S. and elsewhere for its annual ranking of Best & Worst States for Business. Visit www.chiefexecutive.net for more information.