World Class Mergers & Acquisitions  |  For Companies $5 Million to $250 Million in Revenue

What’s the Difference Between a Main Street and a Middle Market Broker?

What’s the Difference Between a Main Street and a Middle Market Broker?

Transworld M & A Advisors is solely focused on middle market transactions, and people often ask us about the definition of  a “middle market” broker as opposed to a typical “Main Street” business broker. There are a number of distinctions that we will take a look at here, but the primary difference is the selling price of the business in question.

A Main Street company is relatively small in size and scope. As a general rule of thumb, if a business has adjusted business earnings of $1 million or less, and adjusted business revenue of $3 million or less, it will be looked upon as a Main Street company. The business valuation would be based on the seller’s discretionary earnings. A basic business brokerage would typically be necessary to facilitate a Main Street business transaction. In many cases, the purchaser would be an individual who wants to “buy a job,” so the buyer would run the business in a hands-on manner. This dynamic minimizes the importance of the existing management structure. Smaller restaurants, specialty stores, salons, service providers and the like would fall into the Main Street category.

Transworld M & A Advisors is comprised of a team of true middle market brokers. The companies that we work with are worth between $5 million and $250 million. For the most part, middle market buyers are experienced, seasoned business executives, private equity groups, and strategic buyers who want to utilize acquisitions to facilitate rapid growth. These larger scale transactions require complicated negotiations and sophisticated structuring, so it takes a particular brand of expertise to be a successful middle market broker.

Our company is a division of Transworld Business Advisors, which is a name that resonates loudly within the business sales and marketing industry. Transworld has an extraordinary reach, with offices in 32 states and seven foreign countries, so we have a powerful network. The middle market merger and acquisition division has been created so that our middle market brokers can stay completely focused on this segment of the business. If you would like to learn more about our services, you can give us a call right now at (888) 864-6610. You also have the option of sending us a message through our contact page