Governance & Finance

  • The Paradox of Success

    Research has demonstrated that as an entrepreneur’s self-efficacy rises their risk-taking propensity rises and they increasingly rely on their own abilities eschewing the wisdom of external voices such as advisors or their own management team.  This highlights some distinguishing features that differentiate successful entrepreneurs from managers.  One of the most pronounced differences results from how their skills are developed.    Read More >
  • 2016 Annual Report: 5 Years of Fueling the Engine of Growth

    As the National Center for the Middle Market celebrates its five-year anniversary, we are energized by the middle market’s evolution from obscurity to acclaim. And we are focused on the transformation our organization has undergone along the way. The Center has moved beyond building awareness of the importance of this critical economic sector into serving as a key catalyst for fueling and tuning the “engine of growth,” ensuring the middle market’s peak performance.  Read More >
  • Four Ways To Enhance Your Approach To Financing

    Most middle market firms are conservative when it comes to debt. As recent research by the National Center for the Middle Market and the Milken Institute reveals, middle market companies have a strong preference for relatively low levels of debt. And when they do borrow, they gravitate toward traditional business bank loans. The following tips can help your company build a strategic approach to financing so that you’re ready to take advantage of your options when the time is right.  Read More >
  • Access to Capital: How Small and Mid-Sized Businesses Are Funding Their Futures

    Research conducted by the National Center for the Middle Market and the Milken Institute explores how small business and middle market firms raise capital, their strategy for debt, the important factors driving their consideration of financing and their outlook for expansion. This research reveals how capital providers can serve small and middle market companies and how public policy influences them.  Read More >
  • Middle Market Acquisitions: If I Had Only Known

    All significant business decisions are subject to uncertainty, and the all-encompassing scope of acquisitions may make such investments among the most uncertain and subject to surprises. Based on interviews with over eighty middle market executives who shared their stories and observations, this white paper provides practical advice for middle market executives seeking to grow their businesses through acquisitions.  Read More >
  • The Affordable Care Act: What Businesses Face in 2015

    The Affordable Care Act will introduce new requirements in 2015, representing an important set of milestones for businesses—particularly midmarket companies. According to an NCMM report, more than 90 percent of midsize executives see health care costs as a challenge, and this latest series of provisions will certainly come into play for many companies.

    In addition, the shifting calculus of politics in Washington, D.C., as well as a Supreme Court–bound challenge of subsidized care, could cloud the future of what the ACA will ultimately do and the impact employers could face.

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  • Raising Equity: Minority vs. Majority Partnerships

    By Axial
    Raising equity for the first time can be an extremely difficult process for any business owner. One of the first and biggest decisions that must be made in this process is whether to sell a minority or a majority stake in the company. Understanding the implications, and pros and cons, of each route can help you make the right decision for a long-term business partner and for the future of the business. Here’s a breakdown of some the advantages and disadvantages of minority and majority partnerships that illustrates when each type of investment is best.  Read More >
  • What is an Earn-Out?

    By Axial

    Despite months of negotiation, buyers and sellers often have trouble agreeing on a specific purchase price. This misalignment on price can cause one or both parties to step away from the negotiation process. But the disagreement does not need to end the entire process. Rather than scrapping the transaction, one strategy to bridge the gap between the buyer and the seller is to use an earn-out.

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  • 4 Ways to Prepare Your Business for Sale

    By Axial
    When you decide to sell your company, it is not uncommon to find that many aspects of the business are not ready for a sale. Whether it’s incomplete financial statements, disorganized tax history, or legal oversights, the sale process can quickly become complicated and difficult. Consider these four areas before reaching out to intermediaries and investors in order to avoid a lower sale price and last-minute problems that could lead to the eventual dissolution of the deal.  Read More >
  • 4 Key Differences Between Financial and Strategic Buyers

    By Axial
    Whether you’re considering a sale of your business now or planning for a future transaction, understanding the mindset of different types of buyers is critical to your preparation and decision-making processes. By understanding the motivations and goals of each type of buyer, you can better prioritize which buyers fit your situation and focus on the right relationships.  Read More >
  • A Briefing for Owners of Middle Market Companies on Private Equity Firms as Potential Acquirers/Investors

    Many owners of middle market companies are relatively unfamiliar with the workings of private equity (PE) firms, and are therefore at a disadvantage when considering how and when private equity firms might be right for the potential sale of their business. Whether or not a potential sale of the business is something that you’re currently considering, this briefing document may prove helpful for when the timing is right.   Read More >
  • Financial Capital: 5 Broad Financing Options for Middle Market Firms

    While a middle market company has many critical relationships, such as those with customers, suppliers, and employees, its relationship with its financial capital providers may be the most important of all. Credit can be the lifeblood of expanding businesses, allowing for investment in new projects, the purchase of needed equipment, and more. Since the credit crunch beginning in 2007-08, banks have increasingly tightened their commercial lending standards and credit has become more difficult to obtain and more expensive, with higher interest rates and more demand for collateral. According to a National Center for the Middle Market survey, "54 percent of middle market companies said one of their key challenges was gaining access to financing."

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  • A New Case for Mergers and Acquisitions

    Nearly 40 percent of middle market companies express interest in mergers and acquisitions, with many actively looking for suitors. Traditionally, operational synergies have driven mergers - the idea that the target company and the acquiring company can enhance overall value post-acquisition. The companies' product portfolios or service offerings may complement each other, or a merger may eliminate redundant costs, bring enhanced purchasing power in negotiations with suppliers, or yield similar benefits of scale.  Read More >
  • Securing a Business Loan: Is the Climate Right?

    For the past five years, many middle market companies have struggled to get a business loan to invest and grow. There were several contributing factors, including Federal Reserve borrowing, new banking regulations, and slow economic growth. While all of the above are still prevalent, it appears we have crested the hill and are moving toward easier loan access.  Read More >

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