Mid-Market M&A Firms: Who Actually Closes Deals
The mid-market M&A landscape is crowded. Hundreds of firms claim to specialise in transactions between $50 million and $500 million in enterprise value, each pitching their unique capabilities, deep buyer relationships, and track record of success. For founders evaluating advisory options, separating genuine capability from marketing claims is essential but difficult.
The data tells a clearer story than the pitches. Some firms consistently close deals at premium valuations. Others generate process activity without results. Understanding what differentiates effective mid-market advisors from those who simply participate in the market helps founders make better choices about who represents them in transactions that define their financial futures.
The Mid-Market Landscape
Middle market investment banks typically serve companies with enterprise values between $100 million and $2 billion. Below this range, the economics often favour smaller boutiques or business brokers. Above it, the bulge bracket investment banks become competitive. Within this range, a diverse ecosystem of advisory firms competes for mandates.
The current valuation environment creates opportunity for sellers. According to Forvis Mazars, overall mid-market multiples averaged 7.2x TEV/EBITDA year-to-date in 2025. Transactions in the $100 million to $250 million range commanded approximately 10.0x, up from 8.5x in 2024. Companies with over $10 million in EBITDA traded at 8.1x, up from 7.7x the prior year. These improving multiples reflect a market that rewards quality assets and well-run sale processes.
This environment favours founders who select advisors capable of running genuinely competitive processes. When buyer appetite is strong, the difference between a mediocre process and an excellent one translates directly into valuation.
Deal Flow Is Up and Quality Matters More
The mid-market is experiencing a resurgence of activity. According to Axial's Q1 2025 report, members marketed 3,049 deals via the platform in the quarter, a 20.32 per cent increase in deal flow compared to Q1 of the prior year and the second-highest quarterly total in Axial history.
This surge in activity creates both opportunity and challenge. More deals competing for buyer attention means that quality assets with compelling stories stand out, while undifferentiated opportunities struggle to attract interest. The firms that succeed in this environment are those that can position their clients' businesses to capture buyer attention amid the noise.
The implication for founders is clear: a rising tide of deal activity does not guarantee success. The increased supply of opportunities means buyers can be selective. Advisors who understand how to position businesses for maximum appeal, who have relationships with the right buyers, and who can run processes that create genuine competitive tension deliver results. Those who simply list opportunities and wait for interest do not.
What Drives Pursuit Rates
Not all deals attract equal buyer interest. Axial data shows that buyer interest remained highest in deals with $5 million or more in EBITDA, which drew a pursuit rate of 9.63 per cent. This rate significantly exceeds the average, indicating that institutional buyers focus their attention on larger opportunities where transaction economics work.
Sector also matters. Technology and Industrials opportunities posted pursuit rates of 6.06 per cent and 5.62 per cent respectively. These rates reflect sustained buyer appetite for businesses with recurring revenue models, strong growth profiles, and scalable operations.
Understanding pursuit rates helps founders calibrate expectations and evaluate advisor promises. An advisor who claims they can generate strong buyer interest for a $2 million EBITDA business outside a hot sector should explain how they will achieve engagement that statistics suggest is difficult. Conversely, a $10 million EBITDA technology company should expect meaningful buyer competition if the process is run effectively.
The variation in pursuit rates also underscores why advisor selection matters. Firms with deep relationships in high-interest sectors can access buyers who might not respond to cold outreach. Those relationships, built over years of successful transactions, differentiate effective advisors from those who rely purely on marketing materials and databases.
Boutiques Outperform Bulge Brackets
For mid-market transactions, boutique advisory firms consistently outperform their larger counterparts. Academic research confirms that boutique advisors can close large deals faster and attain a higher success rate for those deals compared to bulge bracket banks. The same research found that boutique firms help generate higher abnormal announcement period returns for their bidder clients than bulge bracket banks.
These findings are not surprising when you understand the economics. Bulge bracket banks generate the bulk of their revenue from mega-deals and capital markets activities. A $100 million M&A transaction represents a rounding error in their annual results. The incentive to dedicate senior resources to mid-market mandates simply is not there.
Boutiques, by contrast, have built their entire business model around the mid-market. A $100 million deal is significant revenue. Senior partners stay involved from pitch to close. The team assigned to your deal has substantial experience with similar transactions. And the firm's reputation depends on delivering results in exactly this category of transaction.
This dynamic manifests in practical ways throughout the process. At a boutique, the partner who pitched your mandate typically leads buyer conversations, negotiates key terms, and remains accessible throughout the process. At a large bank, the senior partner may pitch and then delegate everything to junior team members who are simultaneously managing multiple other deals.
The Fee Reality
Mid-market advisory fees follow relatively consistent patterns. According to M&A Community analysis, many mid-market M&A deals in the $10 to $30 million EBITDA range landed within the 3 to 5 per cent success fee zone. This range reflects the economics of mid-market advisory: significant work for meaningful but not enormous fees.
Fee structures typically combine a monthly retainer with a success fee calculated as a percentage of transaction value. The retainer covers the advisor's investment in process preparation, buyer identification, and marketing. The success fee aligns incentives around closing a transaction at the highest possible value.
Some advisors have adopted fee structures that further align interests. Accelerator provisions, where the success fee percentage increases if the transaction exceeds certain valuation thresholds, create powerful incentive for advisors to push for premium pricing rather than simply closing the most convenient deal.
When evaluating fee proposals, founders should consider the total cost relative to the value an effective advisor creates. A competitive process can generate 50 to 100 per cent uplift compared to a proprietary sale. An advisor charging 4 per cent who achieves that uplift delivers enormous value. One charging 3 per cent who does not run a competitive process may cost more in the end.
Choosing the Right Firm for Your Deal
Selecting an M&A advisor is one of the most consequential decisions a founder makes in the exit process. Several criteria help distinguish firms likely to deliver strong results from those who will not.
First, evaluate relevant transaction experience. How many deals has the firm closed in your sector, at your size, in the past two years? Not marketing materials from a decade ago, but recent transactions that demonstrate current capability and market relationships. Ask for specific examples and references from founders who completed similar deals.
Second, understand who will actually work on your deal. The senior partner who makes the pitch may have an impressive track record, but will they be involved in day-to-day execution? Or will your deal be handed to junior team members with less experience and fewer relationships? Get specific commitments about team composition and senior involvement.
Third, assess buyer relationships in your target acquirer universe. Who are the most likely buyers for your business? Does the advisor have existing relationships with those buyers? Have they successfully closed transactions with them? Strong buyer relationships can open doors that cold outreach cannot.
Fourth, evaluate process discipline. How does the advisor run a competitive process? What is their approach to buyer outreach, information staging, and negotiation management? A firm that generates multiple bids and creates genuine competitive tension will deliver better outcomes than one that pursues a single interested party.
Fifth, consider cultural fit. You will work closely with your advisor for six to nine months or longer. Their communication style, responsiveness, and approach to problem-solving should align with your expectations. A brilliant advisor who does not return calls is less valuable than a capable one who keeps you informed throughout.
The Track Record Test
When advisors present their capabilities, ask for specifics. How many deals did they close in the past year? What was the average time from mandate to close? What percentage of their mandated deals actually close? What was the range of outcomes relative to initial expectations?
The answers to these questions reveal more than marketing materials ever can. A firm that closed 15 deals last year with an 80 per cent close rate and consistently exceeded initial valuation expectations demonstrates capability. One that markets extensively but closes infrequently may create activity without results.
References from past clients provide the most valuable perspective. Ask to speak with founders who completed transactions similar to yours. Were they satisfied with the process? Did the advisor deliver on their promises? Would they use the firm again? These conversations reveal the reality behind the pitch.
In the mid-market, the difference between effective and ineffective advisors is substantial. Those who run disciplined processes, leverage genuine buyer relationships, and dedicate senior attention to their mandates consistently achieve premium outcomes. Those who do not leave value on the table.
If you are considering a transaction and want to understand how different advisory approaches might affect your outcome, we would be happy to discuss what to look for and what questions to ask.