Serving Mid-Market Businesses
I prefer not to use revenue, or even the number of employees, as a guideline for identifying whether businesses fall into the middle market. My clients’ revenues and numbers of employees differ to a degree. What they have in common is that they are all strong businesses characterized by profitability, prospects for growth, capable management, and a desire to see the business prosper in the future.
The following information may help you determine whether your client’s business falls into the mid-market category. Businesses are generally described as falling into one of three categories:
1 Main Street Businesses
- Usually local businesses that attract local or regional buyers
- Serviced by business brokers
- Annual revenues under $5 million
2 Mid-Market (Or Middle Market) Businesses
- Regional, national, or international businesses that attract strategic buyers or private equity groups worldwide
- Serviced by M&A advisors and investment bankers
- Annual revenues of $5 million to $1 billion
3 Large Businesses
- Multi-national businesses and institutions
- Serviced by bulge bracket investment bankers (i.e. Goldman Sachs)
- Annual revenues over $1 billion
More About The Middle Market
Because of the wide range of businesses in the middle market, these businesses are sometimes further broken down into three approximate ranges:
- Lower middle market: $5–$50 million
- Middle market: $50–$500 million
- Upper middle market: $500 million–$1 billion
We define the mid-market as businesses with an enterprise value between $5 million and $150 million.
After three years with an international M&A firm and five years with a national M&A firm we have built the necessary credibility to attract the participation of first class associates with demonstrated subject matter expertise to meet and exceed our client’s expectations.