Capstone Partners Reports: Female Executives Prioritize Market Expansion to Drive Business Growth, Show High Preparedness for M&A
Women entrepreneurs' current growth strategies have largely included organic initiatives, with more than half increasing market penetration (59%) and expanding product or service portfolios (53.8%). Of note, market penetration tactics have been more pertinent to women CEOs compared to the broader MM business owner audience, of which only 47.5% have increased market penetration.
Regarding current growth strategies, only 18.1% of women entrepreneurs have enacted inorganic initiatives through M&A. However, M&A as an exit strategy is likely to be more prevalent, with 36.7% considering a merger or acquisition. This is especially true for women CEOs aged 18-34, as many plan to participate in multiple business ventures throughout their careers. Among female CEOs in this age group, 48% have considered M&A as an exit strategy compared to 33.6% of 35 to 54-year-olds and 17.9% of 55+ year-olds. Elevated private equity interest in businesses owned by Gen Z founders may have also contributed to 18 to 34-year-olds' M&A exit considerations. Nearly two-thirds (64%) of women CEOs ages 18-34 have been contacted by a sponsor looking to buy their company.
According to our results, women entrepreneurs are more prepared for an exit than they perceive. When prompted directly, 43.3% of female CEOs noted they have started to plan a business exit. However, when provided a list of exit preparation steps, 74.8% identified that they have completed at least one step. Many women entrepreneurs have built a strong executive leadership team (37.1%), determined financial needs (34.3%), and maximized growth strategies (31.9%) in 2023 to prepare for a future exit.
When it came to top concerns for the future growth of their company, inflation headlined the chart, comprising 55% of responses. Customer retention was the next highest concern at 35%. These figures mirrored the top two concerns in Capstone's
Nearly one in four respondents to Capstone's
Also included in this report:
- An overview of the current size and growth of women-owned businesses in the U.S.
- Key findings on female executive's business operations and strategies.
- Commentary on the challenges women face around credit availability and fundraising.
- Commentary and Q&A from select Capstone advisors on key service areas that women business owners identified as areas of interest or demand.
To access to full report, click here.
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For over 20 years, the firm has been a trusted advisor to leading middle market companies, offering a fully integrated range of investment banking and financial advisory services uniquely tailored to help owners, investors, and creditors through each stage of the company's lifecycle. Capstone's services include M&A advisory, debt and equity placement, corporate restructuring, special situations, valuation and fairness opinions and financial advisory services. Headquartered in
For More Information Contact:
Director of Market Intelligence
sdoherty@capstonepartners.com
617-619-3310
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