In a recent survey of investors, capital providers and advisors conducted at the Texas ACG Capital Connection 2017 conference, Capital One found that 96 percent of respondents believe economic conditions are “better” or “the same” as last year, signaling widespread optimism and opportunities among professionals.
The survey also found that companies located in Texas, which made up half of the total respondents, are more concerned than their peers located elsewhere with the talent and skills shortage as well as changing regulatory requirements.
Respondents were also positive about expectations for their company’s performance in the next 12 months, with 63 percent reporting they expect better performance and 20 percent saying they think it will remain steady.
Capital One surveyed professionals across private equity and mezzanine firms as well as consulting, professional services and middle market businesses at the Texas ACG Capital Connection 2017 conference for their views on business and financial conditions for the next 12 months.
In addition, ninety percent of respondents said that borrowing conditions are better or the same as last year. When asked about the qualities that are most important to them when considering a financial partner, over half (56 percent) of respondents said a strong, long-term relationship, followed by creativity of debt financing (29 percent).
“It’s encouraging to see that optimism around economic and business conditions is translating to positivity around borrowing,” said Bob McCarrick, head of the commercial & industrial banking group at Capital One. “As business look to expand and begin to explore their borrowing options, it’s clear that both strong relationships and creative financing options play major roles.”
When asked to name the biggest challenge facing their business over the coming 12 months, nearly half (44 percent) said a shortage in talent and skills, followed by changing regulatory requirements (30 percent) and rising interest rates (14 percent).
Companies located in Texas, which made up half of the total respondents, are more concerned than their peers located elsewhere with the talent and skills shortage as well as changing regulatory requirements. Forty-nine percent of respondents in Texas cited a shortage in talent and skills as the biggest challenge facing their business, compared to 42 percent of respondents located elsewhere, and 33 percent cited the changing regulatory environment, compared to 26 percent of respondents based outside of Texas.
“Solid relationships remain at the heart of successful financial partnerships, and it is clear from our survey results that these relationships continue to be a top priority for professionals in Texas when looking for a financial partner,” said Kent Eastman, Texas state president for Capital One. “We place significant importance on nurturing these relationships at Capital One, and remain a trusted financial partner that has experience navigating a variety of market cycles.”