Q1 2016 PCA Index Results - Full Report

A Higher Degree of You02.22.16

First Quarter 2016Craig Everett, Ph.D.

Director, Pepperdine Private Capital Markets Project

A Higher Degree of You

bschool.pepperdine.edu/accesscapital

© 2012-2016 Pepperdine University. All rights reserved. Pepperdine Private Capital Access Index (“PCA Index”) is a trademark of Pepperdine University. PCA Index content is the intellectual property of Pepperdine University or its third party content providers. Any copying, republication or redistribution of PCA Index content, including but not limited to caching, framing or similar means, is expressly prohibited without the prior written consent of Pepperdine University. Pepperdine University shall not be liable for any errors, omissions or delays in PCA Index content, or for any actions taken in reliance thereon.

PUBLISHED BY

2



ACKNOWLEDGEMENTS

I’d also like to thank the following people at The Graziadio School of Business and Management for their contributions:

David M. Smith, Ph.D.Dean

John K. Paglia, Ph.D.Associate Dean, Associate Professor of Finance

Lisa PerryDirector, Marketing and Communications

Irina ShaykhutdinovaResearch Associate

3



This research was made possible with the support of Dun & Bradstreet.

DUN & BRADSTREET

Jeffrey StibelVice Chairman

Judy Hackett, Chief Marketing Officer

Aaron StibelChief Technology Officer

Heather HerndonDirector, Marketing and Communications

Lauren SimpsonMarketing and Communications Manager

Bernice BrennanManager, Creative Services & Marketing Communications

Ben PollockMarketing Manager



I. About the Private Capital Access (PCA) Index……...….…6

II. Demand for external financing……………………..….….15

III. Accessibility/success rate of raising new capital……...…27

IV. Expected demand for external financing……………..…..40

V. Expected capital access (success) rates……………..….45

VI. Hiring/growth outlooks and financing failure impacts…51

VII. About the respondents…………………………………..…74

TABLE OF CONTENTS

5


The Pepperdine Private Capital Access Index (PCA) is a quarterly indicator produced by the Graziadio School of Business and

Management at Pepperdine University, and with the support of Dun & Bradstreet. The index is designed to measure the demand

for, activity, and health of the private capital markets. The purpose of the PCA Index is to gauge the demand of small and

medium-sized businesses for financing needs, the level of accessibility of private capital, and the transparency and efficiency of

private financing markets.

I. ABOUT THE PRIVATE CAPITAL ACCESS (PCA) INDEX

6



• 40 questions• Invite to participate distributed to sample from Dun & Bradstreet’s business database

• 2,469 completed responses • Where relevant, responses are segmented by revenues sizes (<$5 million; $5 million to $100 million)• Responses collected from February 2 – February 19, 2016

ABOUT THE Q1 2016 PRIVATE CAPITAL ACCESS (PCA) INDEX SURVEY

7



PRIVATE CAPITAL ACCESS (PCA) AND PRIVATE CAPITAL DEMAND (PCD) INDEX RESULTS - WHOLE SAMPLE

8



PRIVATE CAPITAL ACCESS (PCA) AND PRIVATE CAPITAL DEMAND (PCD) INDEX RESULTS – WHOLE SAMPLE

9

2012-Q2

2012-Q3

2012-Q4

2013-Q1

2013-Q2

2013-Q3

2013-Q4

2014-Q1

2014-Q2

2014-Q3

2014-Q4

2015-Q1

2015-Q2

2015-Q3

2015-Q4

2016-Q1

0102030405060708090

100



SMALL BUSINESS PCA AND PCD INDEX RESULTS (< $5M IN REVENUES)

10



SMALL BUSINESS PCA AND PCD INDEX RESULTS (< $5M IN REVENUES)

11

2012-Q2

2012-Q3

2012-Q4

2013-Q1

2013-Q2

2013-Q3

2013-Q4

2014-Q1

2014-Q2

2014-Q3

2014-Q4

2015-Q1

2015-Q2

2015-Q3

2015-Q4

2016-Q1

0102030405060708090

100



LOWER MIDDLE MARKET PCA AND PCD INDEX RESULTS ($5M – $100M IN REVENUES)

12



LOWER MIDDLE MARKET PCA AND PCD INDEX RESULTS ($5M – $100M IN REVENUES)

13

2012-Q2

2012-Q3

2012-Q4

2013-Q1

2013-Q2

2013-Q3

2013-Q4

2014-Q1

2014-Q2

2014-Q3

2014-Q4

2015-Q1

2015-Q2

2015-Q3

2015-Q4

2016-Q1

0102030405060708090

100



ANNUAL REVENUE CHANGE EXPECTATIONS BY REVENUE SIZE

Q3, 2012

Q4, 2012

Q1, 2013

Q2, 2013

Q3, 2013

Q4, 2013

Q1, 2014

Q2, 2014

Q3, 2014

Q4, 2014

Q1, 2015

Q2, 2015

Q3, 2015

Q4, 2015

Q1, 2016

0%

5%

10%

15%


II. DEMAND FOR EXTERNAL FINANCING

15



DEMAND FOR FINANCING BY PURPOSE (% WITH ANY NEED REPORTED)

16

0%20%40%60%80%

100%



STRENGTH OF DEMAND FOR FINANCING (AMONG THOSE INDICATING DEMAND)

Scale 1-4: slight, moderate, high, extremely high need

17

0.01.02.03.04.0



RESPONDENTS INDICATING HIGH AND EXTREMELY HIGH DEMAND FOR FINANCING (AMONG THOSE INDICATING DEMAND)

18

0%

20%

40%

60%

80%

100%



HOW MUCH FINANCING RESPONDENTS ARE SEEKING

19

Less t

han $5,000

$5,000 - $9,999

$10,000 - 24,999

$25,000 - $49,999

$50,000 - $99,999

$100,000 - $499,999

$500,000 - $999,999

$1 milli

on - $1.999 m

illion

$2 milli

on - $4.999 m

illion

$5 milli

on - $9.999 m

illion

$10 milli

on - $24.999 m

illion

$25 milli

on - $49.999 m

illion

$100 milli

on or more

0%20%40%60%80%

100%



PERCENTAGE INDICATING “YES” TO “IS THE CURRENT BUSINESS FINANCING ENVIRONMENT RESTRICTING…”

20

Growth opportunities for your business? Your ability to hire new employees?0%

20%

40%

60%

80%

100%58%

50%61%

53%

33%19%

Whole sample < $5 million $5 -$100 million



HOW DID RESPONDENTS BUSINESS OPERATE IN THE LAST QUARTER

21

profit break even loss0%

20%

40%

60%

80%

100%



RESPONDENTS PRIMARY SOURCE OF CREDIT IN THE LAST QUARTER

22

Large

bank

Community ban

k

Credit u

nionCDFI

Online l

ender

Trade c

redit p

rovider

Frien

ds/fam

ilyOther

No cred

it0%

20%

40%

60%

80%

100%



WHY WAS THAT THE PRIMARY SOURCE OF CREDIT IN LAST QUARTER

23

I was able to qualify for it

It had a reasonable interest rate

I intended to use it only as a reserve

The payments were affordable

I did not qualify for other sources of

financing

0%

20%

40%

60%

80%

100%



WHAT WAS RESPONDENTS BUSINESS’ MOST DIFFICULT CHALLENGE IN THE LAST QUARTER

24

0%20%40%60%80%

100%



PERCENTAGE OF BUSINESSES THAT HAVE FINANCING COMING FROM OUTSIDE SOURCES

25

Whole sample < $5 million $5 -$100 million0%

20%

40%

60%

80%

100%

41% 38%

64%



PERCENTAGE OF RESPONDENTS WHO ATTEMPTED TO RAISE OUTSIDE FINANCING

IN THE LAST THREE MONTHS

26

Whole sample < $5 million $5 -$100 million0%

20%

40%

60%

80%

100%

32% 32% 30%


III. ACCESSIBILITY/SUCCESS RATE

27



IS IT DIFFICULT OR EASY TO RAISE NEW EXTERNAL FINANCING?

Equity financing Debt financing

28

Difficult Neither difficult nor easy

Easy0%

20%

40%

60%

80%

100%

Difficu

lt

Neither

difficu

lt nor e

asy Easy

0%20%40%60%80%

100%



FINANCING SUCCESS RATES BY TYPE AND BUSINESS SIZE FOR PRIOR THREE MONTHS

29

Frien

ds and fa

mily

Crowd funding (

equity

/ deb

t)

Credit c

ard - p

ers.

Credit c

ard - b

iz.

Bank l

oan - b

iz.

Asset b

ased le

nder

Tax p

repara

tion compan

y

Merchan

t cash

advan

ce

Vent. c

apita

l

Mezz. le

nder0%

20%40%60%80%

100%



BANK LOANS: FINANCING SUCCESS RATES BY BUSINESS SIZE FOR PRIOR THREE MONTHS

30

Q2, 2012

Q3, 2012

Q4, 2012

Q1, 2013

Q2, 2013

Q3, 2013

Q4, 2013

Q1, 2014

Q2, 2014

Q3, 2014

Q4, 2014

Q1, 2015

Q2, 2015

Q3, 2015

Q4, 2015

Q1, 2016

0%

20%

40%

60%

80%

100%



ASSET BASED LOANS: FINANCING SUCCESS RATES BY BUSINESS SIZE FOR PRIOR THREE MONTHS

31

Q2, 2012

Q3, 2012

Q4, 2012

Q1, 2013

Q2, 2013

Q3, 2013

Q4, 2013

Q1, 2014

Q2, 2014

Q3, 2014

Q4, 2014

Q1, 2015

Q2, 2015

Q3, 2015

Q4, 2015

Q1, 2016

0%

20%

40%

60%

80%

100%



PERCENTAGE OF RESPONDENTS WHO SUCCESSFULLY SECURED A SBA BACKED LOAN IN THE LAST THREE MONTHS

32

Frien

ds and fa

mily

Crowd funding (

equity

/ deb

t)

Credit c

ard - p

ers.

Credit c

ard - b

iz.

Bank l

oan - b

iz.

Asset b

ased le

nder

Tax p

rep. co

mpany

Merch. ca

sh advan

ce

Vent. c

apita

l

Mezz. le

nder0.0%

20.0%40.0%60.0%80.0%

100.0%



PERCENTAGE OF RESPONDENTS THAT HAVE CONSIDERED SBA LOAN FOR THEIR BUSINESSES

33

Whole sample < $5 million $5 million -$100 million0%

20%

40%

60%

80%

100%

45% 48%

28%



PERCENTAGE OF RESPONDENTS THAT HAVE SUCESSFULLY SECURED SBA BACKED LOAN IN THE LAST THREE MONTHS

34


20%

40%

60%

80%

100%

2% 1% 2%



PERCENTAGE OF THOSE WHO ATTEMPTED TO RAISE FINANCING BY TYPE OF FINANCING FOR PRIOR THREE MONTHS

35

Frien

ds and fa

mily

Crowd funding (

equity

/ deb

t)

Credit c

ard - p

ers.

Credit c

ard - b

iz.

Bank l

oan - b

iz.

Asset b

ased le

nder

Tax p

rep. co

mpany

Merch. ca

sh advan

ce

Vent. c

apita

l

Mezz. le

nder0.0%

20.0%40.0%60.0%80.0%

100.0%



MAIN PURPOSE FOR RAISING OR ATTEMPTING TO RAISE FINANCING

36

0%20%40%60%80%

100%



REASONS FOR BUSINESSES NOT ATTEMPTING TO RAISE EXTERNAL FINANCING (MULTIPLE SELECTIONS)

37

Enough

cash flow

Sufficie

nt finan

cing i

n place

Business

would be r

ejecte

d

Lack o

f exp

ertise

Weak e

conomy

Not enough

time

Waiting f

or chea

per finan

cing

Loss

of contro

l / flexi

bility

Cease

operation / l

iquidateOther

0%20%40%60%80%

100%



PERCENTAGE OF OWNERS WHO TRANSFERRED PERSONAL ASSETS TO BUSINESS OVER PRIOR THREE MONTHS

38

Yes No Unsure0%

10%20%30%40%50%60%70%80%90%

100%

37%

60%

4%

39%

57%

4%14%

83%

3%

Whole sample < $5 million $5 -$100 million



TYPES OF PERSONAL ASSETS TRANSFERRED TO BUSINESS DURING PRIOR THREE MONTHS

(MULTIPLE SELECTIONS)

39

Personal sav-ings / invest-

ments

Personal credit card purchases

Personal loan Cash from the sale of personal

assets

Home equity loan

Other0%

20%

40%

60%

80%

100%


IV. EXPECTED DEMAND FOR EXTERNAL FINANCING

40



PERCENTAGE OF BUSINESSES PLANNING TO RAISE FINANCING IN THE NEXT SIX MONTHS

41

Yes No Unsure0%

20%

40%

60%

80%

100%

37% 42%

21%

38% 39%

22%26%

62%

12%

Whole sample < $5 million $5 million -$100 million



PERCENTAGE OF RESPONDENTS INDICATING DEMAND FOR NEW FINANCING IN THE NEXT SIX MONTHS

42

0%

40%

80%



STRENGTH OF EXPECTED DEMAND FOR NEW EXTERNAL FINANCING IN THE NEXT SIX MONTHS

(SCALE 1-4: SLIGHT, MODERATE, HIGH, EXTREMELY HIGH)

43

0.01.02.03.04.0



RESPONDENTS INDICATING HIGH OR EXTREMELY HIGH EXPECTED DEMAND FOR NEW EXTERNAL FINANCING IN THE NEXT SIX MONTHS

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%


V. EXPECTED ACCESS RATES

45



DO YOU EXPECT IT WOULD BE EASY OR DIFFICULT TO RAISE NEW FINANCING IN THE NEXT SIX MONTHS?

Equity financing Debt financing

46

Difficult Neither difficult nor easy

Easy0%

20%

40%

60%

80%

100%

Difficu

lt

Neither

difficu

lt nor e

asy Easy

0%20%40%60%80%

100%



LIKELY SOURCES OF FINANCING

47

Frien

ds and fa

mily

Grants

(SBIR, S

TTR, e

tc.)

Crowd funding (

equity

/ deb

t)

Trade c

redit

Credit c

ard - p

ers.

Loan

- pers

.

Credit c

ard - b

iz.Lea

se

Bank l

oan - b

iz.

CDFI/ Cred

it union

Asset b

ased le

nder

Biz onlin

e mark

et p

lace l

ender

Tax p

rep. co

mp.

Facto

r

Merch. ca

sh advan

ce

Angel ca

pital

Vent. c

apita

l

Private

equity

group

Mezz. le

nder

Hedge

fund

0%20%40%60%80%

100%



MAIN PURPOSE FOR RAISING EXPECTED FINANCING

48

0%20%40%60%80%

100%



LEVEL OF CONFIDENCE FOR SUCCESSFUL FINANCING (SCALE 0-4: NONE; SOME; MODERATELY; VERY; COMPLETELY)

49

Frien

ds and fa

mily

Crowd funding (

equity

/ deb

t)

Credit c

ard - p

ers.

Credit c

ard - b

iz.

Bank l

oan - b

iz.

Asset b

ased le

nder

Tax p

rep. co

mp.

Merch. ca

sh advan

ce

Vent. c

apita

l

Mezz. le

nder0.01.02.03.04.0



REASONS FOR NOT PLANNING ON RAISING FINANCING

50

Enough

cash flow

Sufficie

nt finan

cing i

n place

Weak e

conomy

Business

would be r

ejecte

d

Not enough

time

Lack o

f exp

ertise

Waiting f

or chea

per finan

cing

Loss

of contro

l / flexi

bility

Cease

operation / l

iquidateOther

0%20%40%60%80%

100%


VI. HIRING / GROWTH OUTLOOKS AND FINANCING FAILURE IMPACTS

51



NUMBER OF EMPLOYEES PLANNED TO BE HIRED IN THE NEXT SIX MONTHS

52

0 1-2 3-5 6-10 11-15 16-20 21-30 31-40 41-50 51-75 76 - 100

101 - 200

0%

5%

10%

15%

20%

25%

30%

35%



REASONS PREVENTING RESPONDENTS FROM HIRING

53

0%20%40%60%80%

100%



WILL EMPLOYEES PLANNED TO BE HIRED BE FULL-TIME OR PART-TIME

54

Mostly full-time employees Mostly part-time employees A combination of full-time and part-time

0%10%20%30%40%50%60%70%80%



DO RESPONDENTS EXPECT TO DECREASE THE NUMBER OF EMPLOYEES IN THE NEXT SIX MONTHS

55

No 1-2 3-5 6-100%

10%20%30%40%50%60%70%80%90%

100%



HOW MANY FULL-TIME EMPLOYEES RESPONDENTS REPLACED WITH (OR CONVERTED TO) PART-TIME EMPLOYEES IN THE LAST SIX MONTHS

56

0 1-2 3-5 6-100%

10%20%30%40%50%60%70%80%90%



HOW MANY FULL-TIME EMPLOYEES RESPONDENTS ARE PLANNING TO REPLACE WITH (OR CONVERT TO) PART-TIME EMPLOYEES IN THE NEXT SIX

MONTHS

57

0 1-2 3-5 6-10 21-300%

10%20%30%40%50%60%70%80%90%



HOW MANY PART-TIME EMPLOYEES RESPONDENTS REPLACED WITH (OR CONVERTED TO) FULL-TIME EMPLOYEES IN THE LAST SIX MONTHS

58

0 1-2 3-5 6-100%

10%20%30%40%50%60%70%80%90%



HOW MANY PART-TIME EMPLOYEES RESPONDENTS ARE PLANNING TO REPLACE WITH (OR CONVERT TO) FULL-TIME EMPLOYEES IN THE NEXT SIX

MONTHS

59

0 1-2 3-5 6-100%

10%20%30%40%50%60%70%80%



HOW RESPONDENTS EXPECT THEIR BUSINESS TO PERFORM IN 2016 COMPARED TO 2015

60

Substantially better Somewhat better Exactly the same Somewhat worse Substantially worse0%

20%

40%

60%

80%

100%



HOW CONFIDENT ARE RESPONDENTS THAT THEIR BUSINESS WILL GROW IN 2016

61

Extremely confident Somewhat confident Somewhat unconfident Extremely unconfident0%

20%

40%

60%

80%

100%



THE MOST SIGINIFICANT CHALLENGE FOR BUSINESS IN 2016

62

Genera

ting new

custo

mer lea

ds

Getting c

apita

l to gr

ow

Hiring q

uality

employe

es

Retaining e

xisting c

ustomers

Upgrading t

echnology

infra

structu

re

Purchasi

ng or le

asing e

quipment

Paying b

illsOther

None0%

20%40%60%80%

100%



HOW THE FEDERAL INTEREST RATE HIKE COULD IMPACT RESPONDENTS BUSINESSES

63

0%

20%

40%

60%

80%

100%



IMPACTS OF UNSUCCESSFUL FINANCING EVENT IN THE NEXT SIX MONTHS FOR THOSE PLANNING TO RAISE CAPITAL (MULTIPLE SELECTIONS)

64

0%

40%

80%



PERCENTAGE OF RESPONDENTS HEDGED THE FOLLOWING AREAS IN THE LAST 12 MONTHS

65

Currency risk Commodity risk Interest risk0%

20%

40%

60%

80%

100%



PERCENTAGE OF BUSINESSES THAT HAVE A FINANCIAL RISK MANAGEMENT POLICY

66

Yes No Unsure0%

20%

40%

60%

80%

100%



THE CLOSEST PERCENTAGE OF RESPONDENTS EXPOSURE THAT THEY TYPICALLY HEDGE

67

25% 50% 75% 100%0%

20%

40%

60%

80%

100%



ANNUAL REVENUES CHANGE FOR LAST 12 MONTHS: WHOLE SAMPLE

68

> 50%

41-50%

31-40%

21-30%

16-20%

11-15%6-10%

4-5%2-3%

Staye

d flat2-3%

4-5%6-10%

11-15%

16-20%

21-30%

31-40%

41-50%> 5

0%

Averag

e0%

5%

10%

15%

20%

25%

5%2% 1%

3% 3%2%

3% 2% 3%

23%

11%

6%

10%

5% 5% 4%3% 3%

6%4%

Decline Increase



ANNUAL REVENUES CHANGE FOR LAST 12 MONTHS : REVENUES UNDER $5M

69

> 50%

41-50%

31-40%

21-30%

16-20%

11-15%6-10%

4-5%2-3%

Staye

d flat2-3%

4-5%6-10%

11-15%

16-20%

21-30%

31-40%

41-50%> 5

0%

Averag

e0%

5%

10%

15%

20%

25%

5%

2% 2%3% 3%

2%3%

2% 3%

23%

11%

5%

9%

5% 5% 4%3% 3%

7%

3%

Decline Increase



ANNUAL REVENUES CHANGE FOR LAST 12 MONTHS : REVENUES FROM $5M TO $100M

70

21-30%

16-20%

11-15%6-10%

4-5%2-3%

Staye

d flat2-3%

4-5%6-10%

11-15%

16-20%

21-30%

31-40%

41-50%> 5

0%

Average

0%2%4%6%8%

10%12%14%16%18%20%

2%5%

2% 3% 4%2%

18%

11%

6%

14%

6%8% 7%

5%

1%

5%

8%

Decline Increase



ANNUAL REVENUE CHANGE EXPECTATIONS (NEXT 12 MONTHS): WHOLE SAMPLE

71

> 50%

41-50%

21-30%

16-20%

11-15%6-10%

4-5%2-3%

Staye

d flat2-3%

4-5%6-10%

11-15%

16-20%

21-30%

31-40%

41-50%> 5

0%

Average

0%2%4%6%8%

10%12%14%16%

2%1% 1% 1% 2% 2% 1% 1%

15%13%

11%12%

7% 7% 7%

4% 3%

10%12%

Decline Increase



ANNUAL REVENUE CHANGE EXPECTATIONS (NEXT 12 MONTHS): REVENUES UNDER $5M

72

> 50%

41-50%

21-30%

16-20%

11-15%6-10%

4-5%2-3%

Staye

d flat2-3%

4-5%6-10%

11-15%

16-20%

21-30%

31-40%

41-50%> 5

0%

Average

0%2%4%6%8%

10%12%14%16%

2%1% 1% 1% 2% 2% 1% 1%

14%13%

10%

12%

6%7%

7%

4% 4%

12% 12%

Decline Increase



ANNUAL REVENUE CHANGE EXPECTATIONS (NEXT 12 MONTHS): REVENUES $5M TO $100M

73

> 50%

21-30%

16-20%6-10%

4-5%

Staye

d flat2-3%

4-5%6-10%

11-15%

16-20%

21-30%

31-40%

41-50%> 5

0%

Average

0%2%4%6%8%

10%12%14%16%18%

1% 1%2%

4%1%

16%

12%

15%

11% 12%

7%9%

4%

1%

4%

9%

Decline Increase


VII. ABOUT THE RESPONDENTS

74



DETAILS ABOUT THE RESPONDENTSGEOGRAPHIC LOCATION

75



DETAILS ABOUT THE RESPONDENTS INDUSTRY

76

28%

13%9%8%7%

7%

6%5%

4%3% 3%2% 1% 2% Services

ConstructionRetail tradeFinance & real estateManufacturingInformation technology or servicesTransportation and warehousingHealth careWholesale tradeEducational servicesArts, entertainment or recreationForestry, fishing, hunting or agricultureUtilities & miningUnclassified establishments



DETAILS ABOUT THE RESPONDENTS ANNUAL REVENUES

77

7% 5%3%

4%7%

10%15%

11%10%

9% 8%4% 3%1%

1% 3% $0 or pre-revenue stage$1 - $5,000$5,001 - $10,000$10,001 - $25,000$25,001 - $50,000$50,001 - $100,000$100,001 - $250,000$250,001 - $500,000$500,001 - $1,000,000$1,000,001 - $2,000,000$2,000,001 - $5,000,000$5,000,001 - $10,000,000$10,000,001 - $25,000,000$25,000,001 - $50,000,000$50,000,001 - $100,000,000$100,000,001 - $500,000,000



DETAILS ABOUT THE RESPONDENTS ANNUAL INCOME

78

10%9%

6%

9%14%17%

15%

7%5% 3%

2%1% 1% 1% Negative (net loss)$1 - $5,000$5,001 - $10,000$10,001 -$25,000$25,001 - $50,000$50,001 - $100,000$100,001 - $250,000$250,001 - $500,000$500,001 - $1,000,000$1,000,001 - $2,000,000$2,000,001 - $5,000,000$5,000,001 - $50,000,000$50,000,001 - $100,000,000Greater than $100,000,000



DETAILS ABOUT THE RESPONDENTS TOTAL BUSINESS ASSETS

79

3%10% 8%

9%

10%12%11%9%

8%6% 6%

3%2% 5%

$0 $1 - $5,000

$5,001 - $10,000 $10,001 - $25,000

$25,001 - $50,000 $50,001 - $100,000

$100,001 - $250,000 $250,001 - $500,000

$500,001 - $1,000,000 $1,000,001 - $2,000,000

$2,000,001 - $5,000,000 $5,000,001 - $10,000,000

$10,000,001 - $25,000,000 Greater than $25,000,000



DETAILS ABOUT THE RESPONDENTS FIRM AGE

80

9% 8%7%

10%

18%20%

28%

Less than 1 year

At least 1 but less than 2





20 or more



DETAILS ABOUT THE RESPONDENTS NUMBER OF FULL-TIME EMPLOYEES

81

8%

46%19%

10%4% 13%

0 1-2 3-5 6-10

11-15 More than 15



DETAILS ABOUT THE RESPONDENTS NUMBER OF PART-TIME EMPLOYEES

82

43%

33%

13%5%2%

4%

0 1-2 3-5 6-10

11-15 More than 15



DETAILS ABOUT THE RESPONDENTS PRIMARY BUSINESS ACTIVITY

83

32%

68%

Sales Service



DETAILS ABOUT THE RESPONDENTS PERCENTAGE OF CERTIFIED WOMEN-OWNED BUSINESSES

84


20%

40%

60%

80%

100%

19% 20%10%



About Pepperdine Private Capital Markets ProjectThe Pepperdine Private Capital Markets Project at the Graziadio School of Business and Management is the first simultaneous, comprehensive, and on-going investigation of the major private capital market segments. The research seeks to understand the true cost of private capital across market types and the investment expectations of privately-held business owners; providing lenders, investors and the businesses that depend on them with critical data to make optimal investment and financing decisions, and better determine where the opportunities to create lasting economic value may be realized. Download reports and find more information at http://bschool.pepperdine.edu/privatecapital. About Pepperdine University’s Graziadio School of Business and Management A leader in cultivating entrepreneurship and digital innovation, The Graziadio School of Business and Management of Pepperdine University focuses on the real-world application of MBA-level business concepts. The Graziadio School provides student-focused, globally-oriented education through part-time, full-time, and Executive MBA programs at our eight campuses, as well as through online and hybrid formats. In addition, The Graziadio School offers a variety of Master of Science programs, a Bachelor of Science in Management degree completion program, Presidential and Key Executives MBA and executive education certificate programs. Follow the Graziadio School on Facebook, on Twitter at @GraziadioSchool and Linkedin.

85

http://bschool.pepperdine.edu/privatecapital

http://bschool.pepperdine.edu/



https://www.facebook.com/pepperdine.graziadio

https://twitter.com/GraziadioSchool

https://www.linkedin.com/company/pepperdine-university-graziadio-school-of-business-and-management



86

Thank YouCraig Everett, Ph.D.

Director,Pepperdine Private Capital Markets Projecthttp://bschool.pepperdine.edu/privatecapital

[email protected]

http://bschool.pepperdine.edu/privatecapital

mailto:[email protected]

mailto:[email protected]