Private Company CEO Survey Reflects Rising Employment, Company Growth and Positive Outlook

 

Chicago, IL - March 28, 2007 – The Private Company Index (PCI) announces that a report based on its first annual survey of private sector CEOs is now available for distribution.  Titled “Private Company CEOs:  Reality, Trends & Expectations,” this 82-page document is a glimpse into operational, strategic, financial and CEO-role related opinions of leaders heading private firms throughout North America.  A key reason for conducting this study was to collect and present concrete data, about financial expectations unique to private companies, to the established financial community(thoughts regarding capital acquisition, openness to M&A, private equity investments, etc.).

Many conclusions can be drawn from the research.  The PCI team posits that the most prominent themes supported consistently throughout the data, are:

  1.  These private companies are growing, and employing. 

  2.  These companies are seeking capital and/or acquisition. 

  3.  The CEOs’ outlook is overwhelmingly positive.

These results give fuel to the “argumentative” fire that private-sector companies are stimulating the economic growth and employment of their regions in a significant way.  According to the survey, the average number of employees increased 31% from 2005 to 2006.  77% agreed that the business climate for small-business ownership was better in 2006 than in the past.  89% state that the coming five years will be an opportunity rich and positive time for private companies. 

CEO opinions regarding financing and acquisition were equally positive—for those in the venture, private equity or M&A space.  Companies are planning shifts in the nature of their financing activities.  When asked to plot interest in various sources of cash over the coming five years, the CEOs show consistently strong interest in venture capital and private equity—beginning now. 

Interest in being acquired could not be more apparent.  87% of respondents were “open” to acquisition within the next five years.  Right now, 46% state they are building their companies expressly for the purpose. 

The PCI, a measurement tool launched by Entrex, Inc. in 2005, is generally recognized as the most authoritative source on company growth and private sector performance by practitioners in the market, including investment bankers, broker-dealers, M&A professionals and leading accounting firms.  Calendar year 2006 saw an increase of 52.5% in index performance.  A number of PCI portfolio CEOs, leaders of this collection of blue-chip private companies, participated in the survey and shared some sharp insights on why they have experienced success as well as how they will maintain it. 

To request a copy of this report, contact econefry@entrex.net or visit www.privatecompanyindex.com.

About Private Company Index

The Private Company Index (www.privatecompanyindex.com) provides the financial and investment community a resource to objectively measure private business activity. The Index also allows business owners and the general public the ability to follow the trends and productivity of privately owned businesses.

The Index was created by Entrex (www.entrex.net)-the global source to find, research, track, manage and invest in private companies- along with the Private Business Channel (PBC) (www.privatebusinesschannel.com) an online video and television production company featuring the best-of-breed private companies on the path to open their equity to private investors.