The Private Company Report: Private Company Growth Continues; Service Industries Seeing Strong Sales Performance
New York, NY, June 24, 2013— Sageworks released their latest Private Company Report today, their update on the health and state of privately held U.S. companies.
According to the report, private companies continue to grow at a healthy pace and to experience strong profit margins in the most recent period. Private companies were generating an average annual sales growth of about 10 percent as of May 31st, or about the same growth they were seeing a year ago. The estimate is based on the sales growth reported by companies filing annual statements in the six months ended May 2013. Companies also continued to expand their profit margins in this period, reporting net profit margins close to 7 percent.
A sector analysis showed that service industries like consulting companies, architectural firms and computer systems design companies are seeing strong sales growth. Entrepreneurs who may be looking for business ideas with minimal upfront investment and minimal required staff may be interested in the health of these industries.
Sageworks Chairman Brian Hamilton pointed out that, despite healthy sales growth and profit margin expansion, “companies remain very resistant to increasing their overhead.” The healthy performance of these companies coupled with their tepid hiring practices remains to be a troubling paradox, according to Hamilton.
Sageworks Private Company Report is an update on the health of privately held companies in America. It includes metrics on the average U.S. privately held company, as well as the performance of notable sectors and industries. The full report, including sector breakout and further analysis, can be found here.
Raleigh, NC-based Sageworks is a financial information company that provides risk management solutions to financial institutions. Sageworks’ data and applications are used by thousands of financial professionals across North America. The company has been named to the Inc. 500 list of the fastest growing privately held companies in the U.S. and to the Deloitte Technology Fast 500.