Why Strategic Buyers Are Focusing on the Lower Middle Market
In recent years, a notable shift has occurred in mergers and acquisitions (M&A) activity, with strategic buyers turning their attention toward smaller yet highly promising business segments. While large-cap deals often dominate headlines, a growing number of acquirers are finding significant value in businesses that are agile, specialized, and poised for expansion. According to data from Pitchbook, acquisition activity for small and mid-sized companies has outpaced some larger segments, signaling a sustained interest in this dynamic space. Understanding the driving forces behind this trend can help business owners position themselves for future opportunities. Understanding the Lower Middle Market The lower middle market typically consists of companies generating between $5 million and $100 million in annual revenue. These businesses often operate as privately held entities, many of them family-owned or founder-led. They represent a diverse range of industries, from man...