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Corporate execs prefer private equity financing – EY study

Updated with correction

Companies prefer private equity and bank lending as sources of financing to drive their business forward, according to results of a survey by Ernst & Young that is expected to be discussed on Tuesday at the Milken Institute Global Conference in Beverly Hills, Calif.

According to a copy of the survey results, some 24% of survey respondents indicated private equity was the preferred source of capital, followed by 19% who preferred bank lending. These sources of financing were followed by 15% preferring angel investors and high-net-worth individuals, and 13% selected venture capital.

However, when considering a sale, 30% of survey respondents would be most interested in large corporate buyers, the survey found. Corporate buyers were followed by venture capital at 22%, and private equity, 19%.

Seventy-three percent are considering a sale as a strategic option, with 27% of survey respondents indicating they are not considering a sale. Further, 27% of survey respondents stated that at no point in the cycle would they consider a sale, while 25% that indicated they would consider a sale during their business' expansion stage.

The survey covered 208 respondents who are C-suite executives at private companies and was conducted in February.