The universe of middle-market companies is vast. According to GE Capital Commercial Finance, there are in excess of 122,000 middle market companies with annual revenues between $10 million and $250 million, (over 90% privately owned), plus an unknown number of “divisional” opportunities. Another large potential candidate pool consists of public companies contemplating going private or delisting due to the complexities and additional costs of compliance with the Sarbanes Oxley Act.
Target companies will generally be privately/closely held with annual revenues from $25,000,000 to $250,000,000 and not currently in bankruptcy or other formal reorganization. They will have established technologies with viable existing products and stable or growing markets. Referrals come from several distinct sources, including the Cervus Group & Fund affiliated companies, the commercial lending groups of commercial banks, venture capital groups, private equity groups and the professional service organizations that serve our target companies.