FOR IMMEDIATE RELEASE
Richmond, VA – (October 11, 2009) Transact Capital is pleased to release survey results from their most recent survey to area business owners and executives. The survey, taken by over 100 business owners and advisors, was very telling as business owners emphasized cost cutting and innovation as a means to survive this year’s economic turmoil. Business owners and advisors also appear to continue improving outlooks on the economic environment. Findings concluded that 2010 is an opportune time to consider the sale of a business, as a good segment of firms (14% of respondents) look for acquisition opportunities in the coming year.
About the Survey
• Survey Date: August 15 – September 15 2009
• Number Distributed: 1,340
• Total Respondents: 106
• DJIA (average over survey date): 9,453
Key Findings Include:
• A majority (57%) of business owners see business strengthening, but feel there is a long road ahead. One-fourth of those surveyed believe we have not “seen the bottom” yet.
• Respondents in general were equality divided as to outlook prospects for 2010 as compared to the current environment.
• Many (77%) owners are taking proactive actions to offset their sales declines. The top five initiatives are:
– Cost cutting……………………………………70%
– Increase advertising/marketing expense…51%
– Product innovation…………………………..48%
– Layoffs…………………………………………37%
– Adjust pricing………………………………….37%
• Over 90% of owners believed they can and would initiate plans to grow their business. The top five methods to accomplish this goal were:
– Grow through increased marketing / promotional efforts…….60%
– Enhancements to current products/services…………………..46%
– New product lines…………………………………………………37%
– Increase sales force………………………………………………34%
– New geographic areas……………………………………………30%
• Growth by merger or acquisition was only ranked 7th (14%) on the methods to achieve growth, and the reasons given for doing so are as follows:
– Increase Market Share %………………………………………56%
– Leverage overhead / operations synergies………………….47%
– Access to new markets………………………………………..47%
– Acquisition of key personnel/gain bench strength …………34%
– Expand product lines and service……………………………25%
– Leverage Sales Channels……………………………………..25%
– New Technologies……………………………………………..13%
– Acquire established brands……………………………………9%
• Finally, as to how businesses rated their ability to obtain necessary funding capital, 60% of respondents were generally positive (6 or higher on a scale of 1-10) that they could raise capital as needed.
Transact Capital is an independent mergers and acquisitions advisory firm headquartered in Richmond, VA with offices in Roanoke, VA, Lexington, KY, and Orlando, FL. Transact focuses on the needs of small privately held companies with less than $100 million in revenues. With extensive experience in owning, running, or investing in private companies or divisions of public companies, the firm’s principals are able to help many business owners exit their companies or explore other opportunities.
To learn more about Transact Capital, please call Steve Zacharias at 804-323-6868 ext. 102 or send an e-mail to Steve at Steve@TransactCapital.com.
