There is a Private, Quiet Middle Market …You Should Know

WHAT IS THE MIDDLE MARKET? It's not the Fortune 500 companies, nor is it a two-or three-man job shop.  In the world of mergers and acquisitions, the middle market is sometimes defined as those companies that fall into a size range, by value, from $5 million to $50 million.

What is the private market? 

Unlike those attention-grabbing mega-dollar deals involving large publicly owned companies, acquisitions and mergers taking place in the middle market are usually unnoticed by all except those directly involved.  These transactions are normally quiet and private by nature.  This quiet and private middle market world is quite distinct from that of small, main street type businesses you would find advertised in the classified section of any local newspaper.  And yet it does not presume the mega status of deals in the Chrysler-Daimler class.  The middle market tends to be a world unto itself with its own players.

The primary buyers in this market are professionals who operate a variety of different "Private Equity Funds". They are well funded purchasers of growing businesses that they have operating metrics that fit their templates and that they understand. In addition, there are strategic buyers who are motivated by acquisition of technology, production capacity, niche market segments, as well as the opportunity of adding key customer revenues.

It is best to navigate in this market with an experience investment banker who can introduce you to the optimal group of both financial and strategic buyers.