Booming Middle Market Growth Rate

According to the National Center for the Middle Market, revenue growth for the last 12 months for the middle market segment was 9.2% as of March 31, 2017. This growth rate is up nearly 50% from the same period last year. Business confidence is firing on several cylinders and construction activity seems to be ramping up. The middle market is poised to be a key driver for the US economy for the remainder of 2017.

In the acquisition financing arena, capital availability is destiny as companies require reliable access to capital to grow over the long term. Unforeseen capital needs usually arise when acquirers least expect it. This can cause some concern for the acquisition financing provider, especially when covenants tighten up and that working capital availability is utilized faster than expected.

Mezzanine debt borrowing is usually a straightforward activity that many companies use for funding of transitional growth. Mezzanine debt lenders are highly transparent about their due diligence approach and their post-closing loan management making it easy for companies to engage with.

Elections have consequences and positive ones at that for the acquisition financing middle market. While much media attention is paid to the direction of the yield curve and the Fed’s likely rate cuts, scant attention is paid to the more important drivers of the acquisition financing market – business psychology and regulatory climate.

Booming Middle Market Growth Rate

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