A recent national survey indicated a significant shift in how middle market and small businesses view expansion in the next five years. The Business Pulse Survey, which is conducted annually by SunTrust Bank, states that 36 percent of middle market companies with annual revenues of $10 – 150 million are exploring mergers and acquisitions, up from 25 percent in 2015. The international market is seeing an increase in activity, as the survey indicates 29 percent of middle market companies are now looking to expand globally.  

Also, 41 percent of small businesses with annual revenue of $2-10 million plan to introduce a new product or service, up from 31 percent. 

“This is the fourth year SunTrust has conducted the Business Pulse Survey, and we are excited about the significant shift in how both small and mid-market businesses are approaching business growth,” said Chris Misamore, president of the SunTrust South Georgia market. “What we are seeing is what others have been saying; the economy is beginning to repair itself and business owners feel they now have the capital to explore introducing new products or services.” 

Misamore says the survey also found that growth through bank or private equity funding is anticipated by both sectors and provides an opportunity for business clients to begin discussing growth strategies with their bankers. 

“The survey also indicated that business owners want their bankers to have a deeper understanding of their industry and help them develop short and long-term goals and recommendations to assist with strategy,” Misamore said. “We are finding clients want something different from the banking industry as a whole than in the past.” 

Misamore explains that there is a paradigm shift in the way business clients and banks interact.  

“It used to be that clients came to their bank and had one person handle every aspect of their company’s financial needs,” he says. “At SunTrust, we are using a team-centered approach where clients now have a relationship manager who is the quarterback in a sense and aligns the client with other key players based on what that business owner needs.”

SunTrust uses teams of vertical industry specialists, which are groups of individuals that have expertise in specific areas, to provide clients with customized solutions to reach their financial goals. Some of these specific vertical industries include ports and logistics, restaurants and retail, aging services, healthcare, technology, and food and agriculture. 

The survey also indicated that mergers and acquisitions will be an upward trend in the next few years. 

“We are seeing a lot of interest in mergers and acquisitions and international business growth,” Misamore said. “We encourage our clients to come to us so we can have those strategic conversations, whether their selling or purchasing another business or looking to expand globally.”