---
title: "What Is Lower Middle Market? Private Equity Glossary"
description: "The lower middle market is the group of smaller private companies, often defined by earnings of a few million to about fifteen million dollars of EBITDA."
url: https://capstreet.multisites.ai/glossary/lower-middle-market
publisher: Capstreet
phone: +1-713-332-2700
contact: https://capstreet.multisites.ai/contact
---

Fundamentals

# Lower Middle Market

The lower middle market is the group of smaller private companies, often defined by earnings of a few million to about fifteen million dollars of EBITDA.

The lower middle market is the segment between very small main street businesses and large mid-sized companies. There is no single official line. Firms define it by EBITDA, and the ranges differ from one investor to the next.

For example, a regional services company with $6 million of EBITDA is a typical lower middle market business. A shop with $200,000 of earnings is usually too small. A company with $60 million of EBITDA is in a different tier.

This matters because buyers in this segment look for owner-led companies with room to grow. They often bring management help, not just money. Capstreet says it looks for "$3 to $15 million of EBITDA" in "Entrepreneur-owned businesses services companies".

Pricing, deal terms and buyer types change by size, so know where you sit. Read more in [lower middle market private equity](https://capstreet.multisites.ai/lower-middle-market-private-equity). See also [EBITDA](https://capstreet.multisites.ai/glossary/ebitda) and [platform company](https://capstreet.multisites.ai/glossary/platform-company).

[Read nextLower middle market private equity: what owners should know](https://capstreet.multisites.ai/lower-middle-market-private-equity)

## Related terms

-   [EBITDA](https://capstreet.multisites.ai/glossary/ebitda)
-   [Platform Company](https://capstreet.multisites.ai/glossary/platform-company)
-   [Private Equity](https://capstreet.multisites.ai/glossary/private-equity)

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