What Does Middle Market Investment Bank Mean?
A middle market investment bank is an investment institution that takes on assignments exclusively for mid-market mergers and acquisitions (M&A) transactions. Typically, the services provided by these investment banks (also known as i-banks) will be restricted to sell-side, buy-side and financing engagements. Mid market investment banks will usually not engage in leveraged finance, equity capital markets, debt capital markets or restructuring in a public market space. They may provide all encompassing services for privately held mid market organizations.
Divestopedia Explains Middle Market Investment Bank
As the name implies, middle market banks will focus on the middle market: organizations with revenue between $5 million to $500 million. That is a wide range so these firms can further be categorized as boutique investment banks and regional investment banks. Sometimes a bulge bracket i-bank may take on a middle market M&A deal, but this would have to be a high profile transaction.
In addition to the size of deals undertaken by an i-bank, business owners should consider available corporate resources, depth of industry knowledge and experience of dealmakers within the firm, and other criteria when selecting an investment banking firm.