The term “lower middle-market” refers to businesses typically with revenues from $3 million to $50 million. Lower middle market M&A advisors like Gold Country Advisors are exclusively focused on these mid-sized businesses that often fall below the radar screen of investment banks, which tend to favor much larger transactions because of their fee requirements.
Investment banks also know that selling small to mid-sized companies can be time-consuming and challenging work. They know that buyers of these companies are not easily identifiable, nor are they often highly sought after by larger companies. And they are acutely aware that these companies require great skill and expertise to position and sell.
At the other end of the spectrum are so-called “Main Street” business brokers. These brokers typically represent businesses with annual revenues under $3 million. They take on multiple small business listings in a defined geographic/market area and match qualified buyers with sellers. They are able to handle many transactions at a time through a staff of commission-only sales agents, but these agents often lack the larger transaction experience, credentials, national buyer networks, and professional affiliations to be effective in the lower middle market.
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