There are various definitions for criteria of what constitutes a Lower Middle Market. ESS defines a Lower Middle Market transaction as a business which will sell between $1 million and $25 million.
Other Criteria:
Cashflow or Re-stated/Normalize EBITDA = $250K to $10 million(+)
Annual Revenues from $1 million to $50 million(+).
Restated or Normalized EBITDA is calculated by adding back excess and unnecessary operating expenses that are deducted for operational tax purposes, but are added back for a business value assessment. Many times this happens in the form of Normalize Income Statements or Quality of Earnings Reports. It may cost $30,000 or more to get these documents completed.
ESS is a Member of M&A Source and AM&AA, which are National and International organizations which provide resources to assist business owners Sell, Acquire, or Merge with other businesses; as well as, assisting Executive individuals, Investors, or Private Equity Groups purchase businesses. We are staffed with Certified Merger and Acquisition Professionals who are trained for these types of services.
