Mergers & Acquisitions

Resources: Glossary

Don’t be confused or intimidated by any terms or abbreviations in the M&A world. You’ll find answers here.

Middle Market

Definition

The segment of the business landscape made up of mid-sized businesses, such as manufacturing firms, distribution companies, wholesalers, and large service-based companies. The middle market is further divided into the lower, middle, and upper-middle markets.

See Also

Main Street.

Example

Mom-and-pop businesses such as restaurants, coffee shops, landscaping companies, auto and truck service centers, convenience stores, most franchises, and small businesses that offer services.

Tips

Most middle-market businesses generate more than $5 million in annual revenue and more than $1 million in EBITDA. Buyers perceive middle-market businesses as being less risky than Main Street businesses, which is why they sell at higher multiples than Main Street businesses.

Related Resources

What’s a Main Street vs. a middle-market company?