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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

International Collaboration

With Duff & Phelps’ recent focus on a collaborative approach to deals, I am able to bring a high level of service to any mid-market business, regardless of size. And with my own team of in-house professionals, I can offer that same level of service to smaller mid-market businesses.