Sageworks chairman Brian Hamilton offered his assessment of the State of the Union address for private companies.
His company provides financial information on private companies and financial analysis software for them.
[IMGCAP(1)]“The state of the union for private companies is fairly positive,” he wrote Tuesday before the State of the Union. “Sales growth is strong and net profit margins continue to expand. That’s happened for three consecutive years. Companies are making money, and they’ve got some cash flow. We are in an economic recovery, and the strong performance of private companies reflects this recovery. Of course the big problem right now is still jobs. These companies are not hiring as many people as they used to, which is troubling.
“Most business owners care more about paying their bills than party politics. That being said, business owners will be paying attention to the President’s speech tonight, if only to identify upcoming policy shifts that will affect their company. Private companies want to know what’s coming down the pike that’s going to affect their cash flow, especially with upcoming sequester and uncertain economic outlook. They are concerned with their cash. Anything that disrupts that or is a risk to that is something that they will definitely be listening for.”