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Insights from the 2025 Middle Market Business Owners Survey

In December 2025, Capstone Partners unveiled its 2025 Middle Market Business Owners Survey Report, a vital resource for understanding the sentiments of privately-owned companies throughout the United States. By aggregating responses from 401 business owners, the report highlights emerging trends and current challenges, accentuating the dynamic landscape of the middle market.

Key Observations from the Survey

Among the notable findings, 92.5% of CEOs identified inflation as their primary concern influencing company growth. This persistent fear is forcing business leaders to rethink their financial strategies, with 39.7% indicating they have reduced expenses in response to market pressures, particularly tariffs. Such caution underscores the volatile economic climate where external factors significantly influence internal operations.

The survey also offered insights into the effects of the One Big Beautiful Bill (OBBB) Act. Responses varied, with 41.4% of CEOs believing it would have no impact, while 36.7% anticipated negative consequences, and 21.9% offered a more optimistic outlook regarding its potential benefits. This division illustrates the uncertainty that persists among business leaders about legislative measures affecting their operations.

In pursuit of growth, nearly 57.4% of CEOs reported participating in capital market transactions within the past year to enhance liquidity and optimize their financial structures. Meanwhile, interest from private equity firms remains robust, as evidenced by 53.9% of respondents receiving outreach from PE firms, indicating a thriving market for investment opportunities in middle market businesses.

As companies navigate these economic challenges, the demand for performance improvement assistance has increased—up by 3.4% from the previous year. CEOs are actively seeking ways to maintain profitability and improve operational efficiencies amid what many see as a challenging macroeconomic environment.

Despite these challenges, an encouraging 55.9% of surveyed CEOs have laid down plans for aggressive growth strategies over the next year, marking a shift from mere financial survival to ambitious growth pursuits heading into 2026. Additionally, a significant 75.8% of business owners expressed readiness for exit strategies, suggesting a potential surge in mergers and acquisitions in the middle market.

For the first time in five years, the sentiment surrounding the U.S. economy appears to be improving, with 18.7% of CEOs reporting a very positive outlook. This change indicates that clarity around interest rates and inflation is providing a foundation for optimism, particularly as 26.9% of CEOs predict moderate revenue growth of 1-9% year-over-year, with 27.2% forecasting even more substantial growth between 10-25%.

The Broader Implications

Capstone Partners' survey results offer critical insights into the health and dynamics of the middle market, positioning owners to better understand their landscape amidst various challenges. The report not only highlights business owners' immediate concerns and operating tactics but also reveals a forward-looking perspective on growth strategies, economic outlooks, and anticipated changes in revenue.

To delve deeper into the specifics of these findings, including industry breakdowns, readers are encouraged to access the full report provided by Capstone Partners.

About Capstone Partners

With over two decades of experience, Capstone Partners has established itself as a trusted advisor for middle market companies, offering a comprehensive range of investment banking and financial advisory services tailored to support owners and investors at every company stage. Headquartered in Boston, Capstone continues to lead with expertise, helping businesses navigate complexities through dedicated industry teams. For more information, please visit www.capstonepartners.com.