Private Equity Info Blog

Corporate finance advisory firms may be broadly classified  into three main categories:

• Bulge Bracket
• Middle Market
• Business Broker

Although there is no strict metric for these classifications, Private Equity Info segregates the firms by the enterprise value of the firms’ typical clients as follows:

• Bulge-bracket investment banks generally represents clients with transaction values in excess of $50 million (unless there is a strategic rationale for a smaller transaction, such as a follow-on opportunity).
• Middle-market firms tend to focus on companies where the enterprise value of the transaction is between $5 million and $75 million. Middle market firms are usually FINRA licensed.
• Business brokers typically represent smaller clients with transaction values less than $5 million. Business brokers are usually not FINRA licensed.

Further, the key differentiators between a firm designated as an investment bank and a firm that operates as an M&A advisor is that an investment bank – in addition to performing an M&A advisory role – may also provide the following services:

• Advise companies on matters related to the issue and placement of stock
• Act as an underwriter or agent for corporations and municipalities issuing securities
• Maintain broker/dealer operations
• Maintain markets for previously issued securities
• Offer advisory services to investors.

PrivateEquityInfo.com allows subscribers to search 1,100+ U.S. M&A Advisory Firms by location, typical transaction size or alphabetically. View the firms’ contact information, key executives and categorization as either bulge bracket investment bank, middle market investment bank or business broker.