The middle market segment, consisting of companies with annual revenues between $10 million and $1 billion, has emerged as a thriving area of opportunity and growth for business owners and sellers.
Recent financial data shows professional investors such as private equity groups are once again putting money to work in private mid-market companies. Business owners interested in tapping this vein still must clear a number of hurdles to attract private equity investors. The same goes for retiring baby boomers that decide the time is right to sell with middle market valuations on the rise.
The United States’ economy grew at a rate of 5 percent between July and September, the fastest pace in more than 10 years. According to the Commerce Department, that figure was up from the 3.9 percent that was originally estimated.
Cash and credit are readily available to support M&A in the United States and corporate America indicates an uptick in desire for dealmaking according to ninth semi-annual Capital Confidence Barometer. Forty-one percent of U.S. executives surveyed expect to pursue an acquisition over the next 12 months, compared with 23% a year ago.