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Sageworks Blog


4 Reasons private companies matter

Wall Street may get the headlines, but did you know that of the 27 million businesses in the U.S., less than 1 percent are publicly traded on the major exchanges? The rest are privately held, and these private companies represent a vital segment of the U.S. economy. Here are four reasons to learn more about private companies. [More]


Pitfalls of traditional methods for predicting default

Exposure to credit risk continues to be a focus of regulators and financial institutions years after the financial crisis, but traditional methods of predicting default may have drawbacks. Institutions that use "homegrown" scoring methods or proprietary scoring models should be cognizant of problems related to the reliability and consistency of data that is used to create the model and perform the analysis on a specific borrower. [More]


Sageworks hosts Private Company Outlook event in NYC

Due to the limited data available about their performance, private companies are rarely the focus of national news. But private companies will be highlighted at an upcoming, New York City event.
On April 30th, members of the media, business executives and other financial professionals will gather for the Private Company Outlook event to hear the latest information on the current health of U.S. privately held companies. Private companies, which create over 65% of new jobs and more than 50% of GDP, are the driving force of the U.S. economy. [More]


Update on the health of private U.S. companies

When the Census Bureau releases the August report on durable goods manufacturing Thursday, it’s a fair bet that privately held companies will have played a key role in the numbers. After all, private U.S. firms account for 54.5 percent of aggregate non-residential fixed investment. But how are privately held companies faring in general in the current environment? [More]


Drought impacts on cattle ranching continue

Widespread drought conditions have been providing cattle producers more incentives to thin their herds on top of last year’s record liquidation, a trend Sageworks recently noted in a financial update on privately held cattle ranching and farming businesses. [More]


How do private companies stack up against public companies?

Private companies’ profitability has lagged that of public companies in the S&P 500 through the recession and recovery, according to recent data from Sageworks. But private companies took a less drastic hit to sales, on a percentage basis, and saw less compression and less volatility in their net profit margins during that time period. [More]


The 'Dog Days' for jobs

Friday’s jobs report for July was neither decidedly sunny nor gloomy, even though stocks on Wall Street rallied to three-month highs. U.S. employers added a net 163,000 jobs in July, topping forecasts, but the unemployment rate and the number of total unemployed were essentially flat to June levels, indicating hiring is still experiencing its own version of the “Dog Days” of summer. “Even though the number of jobs added was more than expected, the unemployment rate at 8.3 percent is still too high,” said Sageworks CEO Brian Hamilton. [More]


(Temporary) Help wanted, apparently - SageworksStats on

June unemployment in the U.S. was flat, and nearly a third of jobs added were in the temporary-help services industry, a field that has shown strong growth over the last 12 months, according to data from Sageworks Inc. “During the last 12 months, privately held employment service firms have seen their revenues grow by almost 20 percent annually, which far outpaces the average annual growth of around 10 percent for private companies across all industries,” said Sageworks analyst Libby Bierman. “That sales growth validates what the employment numbers released this morning showed—the economy has recently been adding a lot of temporary jobs, which are positions that employment service firms routinely fill.” [More]


The health care ruling's upside for private companies

Thursday's U.S. Supreme Court ruling is reviving impassioned discussions about whether President Obama's health care law will be positive or negative for businesses, especially smaller ones. And while those debates will continue for months or maybe years, one immediate, positive impact on owners of privately held businesses is that they know more about what to expect in the short term, said Brian Hamilton, co-founder and CEO of Sageworks Inc. [More]


Private companies’ current business trends still positive - SageworksStats @

President Obama’s statement earlier this month that the private sector “is doing fine” prompted a wave of criticism, and there are certainly signs that economic confidence among consumers and businesses has weakened recently. But a new real-time measure of key financial metrics for privately held companies in the U.S. shows sales and profitability trends remain solid, even if hiring continues to disappoint. [More]