Middle Market Firm
Candlefocus EditorTransaction activity in the middle market has been increasing in recent years. After hitting their pre-recession peak of $300 billion in 2007, middle market mergers and acquisitions hit a low in 2009 before rebounding to $215 billion with a significant increase in 2011. These transactions have been largely driven by private equity investment in this sector, which is seen as offering favorable growth potential.
The middle market has long been considered an attractive option for investors, but it has become even more appealing in recent years due to low-interest rates and an improved climate for business. The sector also enjoys numerous tax incentives and government programs that help incentivize investments, such as the Small Business Capital Access Program and the Small Business Innovation Research program. The positive regulatory environment in the U.S., combined with strong worldwide economic growth, has also helped spur innovation and growth in the middle market.
As the middle market becomes increasingly attractive for investors, business owners are turning to this sector for their own growth and stability. Middle market firms tend to be more established in comparison to small startups, making them more attractive to investors. These organizations also tend to benefit from more access to capital and other resources, and they often offer more lucrative — and more stable — job opportunities for employees.
The middle market has long been a hotspot for economic growth and job creation in many developed countries, and the sector continues to be an important part of the U.S. economy. With an improved regulatory environment, tax incentives, and numerous support structures in place, the middle market seems likely to remain an important engine of economic growth.