Dumb Question: What Deal Size is Considered MM?
I am trying to figure out what size M&A deals are considered middle market. Can anyone give a broad range of M&A deal sizes for what they consider LMM, MM, Large Cap, etc?
As I look through EB transactions I see a good amount of deals from $200MM - $2Bln (and of course some very large deals mixed in). Do MMs operate below that level? Or are EBs competing with MMs on deals while also competing on large mandates when the opportunity presents itself?
Any deal with less than tres comas is MM in my book.
The top middle market shops (Piper / Baird / WB) operate on the lower end of that range and a bit lower. Probably more like ~$100MM to ~$400MM for the majority of deals. Jefferies will go higher and are hard to classify. True LMM players are further down, like sub $100MM.
EBs generally are more willing to dip into the middle market than bulges. I assume this is because hunting only megadeals would lead to very volatile revenues and they're basiaclly offering one product, advisory, so they don't have capital markets to smoothe things out.
Beyond those general trends it's sorta group and bank dependent. Some BBs will grill groups that are making solid fee revenue but doing it through mostly middle market deals while missing the big WSJ mandates. Some care less.
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