Lower middle market

Definition

The tier above main street, professionally run and priced on EBITDA.

Why It Matters

Cross into it and the whole game changes: multiples step up, buyers price on EBITDA, and diligence expectations harden. The competition changes too, from first-time operators to funds and family offices with capital and analysts, so a searcher reaching this tier needs a real edge or a proprietary angle to win.

In numbers: Roughly $5M to $100M in enterprise value, above Main Street and below the mid-market, where M&A advisors and independent sponsors work.