Citizens survey finds business owners’ optimism on rise following election

FOLLOWING THE ELECTION, a Citizens Commercial Banking survey found an increase in optimism among the majority of business owners regarding economic conditions. / COURTESY CITIZENS COMMERCIAL BANKING
FOLLOWING THE ELECTION, a Citizens Commercial Banking survey found an increase in optimism among the majority of business owners regarding economic conditions. / COURTESY CITIZENS COMMERCIAL BANKING

PROVIDENCE – The majority of business owners believe that economic conditions will improve this year, according to the Citizens Commercial Banking Survey released this week that examined the effect of the presidential election on future mergers and acquisitions.

More than half of owners – 52 percent – of mid-sized companies believe economic conditions will improve in the coming year compared with 34 percent before the election.

“The election results added more fuel to a positive outlook for mergers and acquisitions among middle market U.S. companies this year,” Bob Rubino, executive vice president and head of Corporate Finance and Capital Markets at Citizens Commercial Banking, said in a statement. “Some CEOs are still in wait-and-see mode, but they are optimistic about possible changes that could improve their bottom lines and generate more deal-making opportunities.”

A follow-up survey was conducted last month, from Feb. 1-13, to gauge business leaders’ sentiment; 200 U.S.-based middle market decision-makers were queried who are engaged in some kind of corporate development activity. They were among the 600 executives polled in the original 2017 Citizens Commercial Banking Middle Market M&A Outlook Study.
It found that 38 percent of leaders thought the election would boost what the previous Citizens Outlook Study revealed were high expectations for mergers and acquisitions activity this year. That study was conducted in September and October and released in December.

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Middle market companies have annual revenue between $5 million and $2 billion, and are considered to be key job creators and drivers of economic activity in the United States, according to Citizens Commercial Banking, which said it serves thousands of middle-market clients across the country.

Other findings from the latest survey:

  • Among middle market business owners, 71 percent anticipate lower health care costs to their business in coming years and 68 percent expect fewer federal regulations.
  • Seventy percent expect lower corporate tax rates while 54 percent anticipate lower individual tax rates and 39 percent expect capital gains tax rates to decrease.
  • Twenty-two percent of business owners are even more likely to engage in M&A activity this year following the election.
  • The percentage of survey respondents who expect a significant financial crisis in the next three years fell to 41 percent from 48 percent.

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