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The cost of capital and the lower middle market

With RSM’s Deputy Chief Economist Kevin Depew

December 12, 2024
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Asset management Inflation
Financial services Policy Financial policy Economics

The Small Business Investor Alliance gave RSM’s Chief Deputy Economist Kevin Depew a chance to discuss the current interest rate market and why changes in the weighted average cost of capital may disproportionately affect lower middle market businesses. This discussion includes perspectives on:

  • Changes in interest rates and where the Federal Reserve will likely go from here
  • The impact on middle market business from changes in interest rates
  • What the current weighted average cost of capital means for businesses in a variety of industries and how asset managers should adapt

RSM contributors

Q3 2024 Middle Market Business Index (MMBI)

Middle market business conditions remain rock solid

Key findings:

  • Economic and business conditions in the American real economy remain solid.
  • Over half of respondents expect the economy to improve during the final three months of 2024 and into the first quarter of 2025.
  • Forty-five percent saw improvement in current-quarter revenues; 65% said they expect further gains in the next six months.
Check out the full report

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