- 50% of Rocky Mountain region middle market executives report 2021 revenues exceeded expectations
- 43% of region’s companies strategically invested in technology and acquisitions
- Some private equity firms continue to hold off making investments, believing prospects overvalued
DENVER, December 1, 2021 — Dietrich Partners, a Denver-based management consulting firm, released the findings from its Rocky Mountain Region Middle Market 2021 Sentiment and 2022 Outlook report. The report notes that although pandemic impacts are decreasing, the Rocky Mountain region’s middle market businesses (companies with revenues from $10 million to $1 billion) are still experiencing challenges related to workforce, supply chain and M&A transactions. This trend is expected to continue through 2022, and for some industries, through 2023.
The Rocky Mountain Region Middle Market 2021 Sentiment and 2022 Outlook is compiled from in-depth interviews with 60 plus C-level middle market executives, augmented by quantitative data from companies across the Rocky Mountain region. This is the second such survey the firm has commissioned or conducted this year on behalf of the middle market and is presented as industry intellectual capital to help middle market companies understand and respond to their ever-changing environments.
“Recovery continues, yet remains uneven across industries,” said Celia Dietrich, executive chair and founder of Dietrich Partners. “By Q3 2021, half of the Rocky Mountain middle market firms we interviewed have revenues, margins and profits exceeding expectations. Most characterized their cash positions as strong, and nearly half reported they are making strategic investments in technology, building improvements, plant modifications, and mergers and acquisitions. While most leaders are looking ahead, this report reflects they remain cautiously optimistic about such repeatable, sustainable financial positions and success in the years to come.”
The report also notes that some private equity firms are deferring investments in the belief that many middle market companies are currently overvalued.
“The most recent data shines a light on the optimistic outlook and opportunity ahead for the Rocky Mountain region,” Dietrich said. “As more and more companies continue to gain confidence, their focus on developing clear, actionable strategic initiatives will strengthen their competitive advantage in 2022.”
Reflecting that optimism, Rocky Mountain region middle market businesses are using a combination of strategies to overcome these challenges, with the top tactics including:
- Entering new markets, acquiring new customers, and enhancing the customer experience
- Fine-tuning the organizational chart to reflect clear alignment, expectations and succession
- Shoring up foundational operating practices
- Developing, implementing and publishing environmental, social, and governance (ESG) programs
- Modifying existing product or service offerings
- Implementing innovative employee experience and development programs
The Rocky Mountain region middle market consists of more than 10,200 companies in Wyoming, Idaho, Montana, Nevada, Utah, Colorado, Arizona and New Mexico. These companies span all industries and ownership structures and constitute a significant business segment that drives the health of local economies and generates a significant share of jobs. Collectively, the region’s middle market businesses employ nearly three million people and have revenues of nearly half a trillion dollars.
To download the full report, please visit Dietrich Partners.
About Dietrich Partners
Dietrich Partners is a nationally recognized management consulting firm working alongside clients to lead and support efficient M&A transactions, deliver complex programs, and optimize a company’s performance to maximize its ultimate value. Founded in 2014 with the goal of delivering a unique client and talent engagement experience, Dietrich’s client roster encompasses the largest public and privately held companies, private equity, and the public sector, ranging in size from the middle market to Fortune 100. While agnostic, the company serves clients across an extensive range of industries including health care, financial services, utilities, manufacturing, government, hospitality, construction and agriculture. Dietrich is a certified woman-owned business, an Inc. 5000 Fastest Growing Company, a 2021 Colorado Company to Watch and recognized as a Great Place to Work®.