In the financial context, “mid-market” refers to a segment of the market that falls between the large or upper-market and small or lower-market segments. It is often used to describe companies, transactions, or investment opportunities that are neither large-scale nor small-scale, but rather somewhere in the middle in terms of size, revenue, or market capitalization.
The exact definition of what constitutes the mid-market can vary depending on the context, industry, and location. However, in general, mid-market companies are typically characterized by:
Revenue and Market Capitalization: Mid-market companies usually have a moderate level of revenue and market capitalization. The precise figures can differ based on the industry, but they are generally above small businesses and below large corporations.
Operations: Mid-market companies are often established and have a track record of operations. They may have a significant regional or national presence but might not be as globally dominant as large multinational corporations.
Ownership Structure: Mid-market companies can be privately held, family-owned, or publicly traded. In some cases, they may be subsidiaries of larger enterprises.
Market Influence: While not as influential as large corporations, mid-market companies can still play a crucial role in their respective industries and contribute to the overall economy.
Investment Activity: Mid-market transactions typically involve mergers, acquisitions, and investments in companies of moderate size.
For example, in the context of mergers and acquisitions, a mid-market transaction would involve the acquisition or merger of a company with a moderate-sized revenue and valuation. Similarly, in the context of private equity, mid-market private equity firms focus on investing in mid-sized companies with growth potential.
Overall, the mid-market segment is considered an essential and diverse part of the economy, representing a wide range of businesses that contribute to economic growth and employment opportunities.
Investment Criteria:
At our firm, we prioritize investing in profitable, well-established companies led by talented management teams that hold prominent positions in their respective market segments.
Our key investment criteria encompass:
Strong market positions and sustainable competitive advantages.
High predictability and visibility of earnings.
Proven track record of generating cash flow and achieving attractive returns on capital throughout economic cycles.
We are deeply committed to supporting businesses owned by entrepreneurs, families, and/or private equity sponsors in realizing their growth and value-creation goals.