Middle Market CEOs Acclimate to Volatility, Prepare for Exits, Capstone Partners Survey Finds

Middle market business owners are demonstrating increased comfort with economic and geopolitical volatility while simultaneously prioritizing preparations for business exits, a new survey by Capstone Partners reveals. The "2026 Middle Market Business Owners Survey Report," which gathered insights from 400 privately-owned companies in the U.S., indicates a strategic shift as leaders navigate persistent inflationary pressures and evolving market conditions.

The survey found that concerns about company growth have decreased, although 92.3% of business owners still grapple with inflation. Businesses have also scaled back adjustments related to trade policy shifts, with most having implemented tariff strategy changes. A significant majority, 57.7%, completed at least one capital markets transaction in the prior 12 months, a slight increase year-over-year.

Interest from private equity (PE) firms in middle market companies remains robust, with 54.6% of surveyed owners reporting inbound contact. Furthermore, 84.5% of CEOs plan to adopt artificial intelligence (AI) tools, with customer service and marketing identified as primary use cases. While plans for new growth strategies have seen a slight decline, there has been a corresponding increase in the prioritization of financial stability efforts.

A striking 72.7% of middle market CEOs have initiated preparations for an eventual business exit. The report highlights a strong correlation between exit preparedness and improved business outcomes, including more capital markets transactions, greater inbound PE interest, and higher revenue growth compared to non-prepared peers.

The Capstone Partners report offers a comprehensive view of the middle market's health in 2026, detailing challenges, required resources, and forward-looking strategies. It also assesses business owners' outlooks on their industries and the broader U.S. economy.