M&A Strategy: Discovering Mid-Market Opportunities


In today’s competitive business landscape, mergers and acquisitions (M&A) can offer a strategic advantage to companies seeking growth, diversification, or increased market share. However, identifying and capitalizing on M&A opportunities can be a challenging endeavor, especially for mid-market businesses with revenues between $5 million and $150 million. This article aims to provide business owners, deal teams, and CFOs with insights on discovering opportunities in M&A while maintaining a professional and insightful tone.

The Importance of a Disciplined Approach

When seeking M&A opportunities, it’s essential to adopt a structured and disciplined approach. This includes defining your strategic rationale, setting clear investment criteria, conducting thorough research on potential targets, and maintaining a healthy deal pipeline. By following a disciplined process, you can increase your chances of success and uncover hidden opportunities that may have been overlooked by others.

Defining Your M&A Strategy

Before embarking on an M&A journey, it’s crucial to establish a clear strategy that aligns with your company’s overall objectives. This may include growth, diversification, or consolidation within a specific market or industry. By defining your strategy upfront, you can ensure that any potential deals align with your long-term vision and provide a solid foundation for future success.

Setting Investment Criteria

Once your strategy is defined, it’s important to establish clear investment criteria to guide your search for potential targets. This may include parameters such as target company size, industry, location, revenue growth, and profitability. By setting clear criteria, you can focus your search efforts on companies that meet your strategic objectives and have the potential to deliver superior returns.

Researching and Identifying Potential Targets

With your investment criteria in place, the next step is to research and identify potential targets that align with your strategy. This may involve leveraging online resources, industry databases, and trade associations to generate a list of potential candidates. By conducting thorough research, you can uncover hidden opportunities and create a shortlist of high-potential targets that warrant further investigation.

Using Competitive Intelligence

To further refine your target list and identify potential acquisition opportunities, consider employing competitive intelligence techniques. This can involve analyzing your competitors’ M&A activities, monitoring industry news, and attending industry events to gather insights into potential deals in the pipeline. By staying informed of market trends and competitor moves, you can better position your company to seize M&A opportunities as they arise.

Prioritizing and Engaging with Targets

After identifying a list of potential targets, it’s essential to prioritize them based on factors such as strategic fit, financial performance, and growth potential. This will help you focus your efforts on the most promising opportunities and maximize your chances of success. Once your targets are prioritized, reach out to their management teams to gauge their interest in a potential deal and request access to confidential information to conduct further due diligence.

Managing a Deal Pipeline

As you progress through the M&A process, it’s important to manage a pipeline of potential deals to ensure you have a steady flow of opportunities at various stages of the transaction process. This involves tracking the progress of each target, nurturing relationships with key stakeholders, and regularly reassessing the strategic fit and potential value of each opportunity. By maintaining a healthy pipeline, you can ensure a consistent deal flow and increase your chances of identifying and closing successful transactions.

Leveraging External Expertise

For mid-market businesses with limited experience in M&A, partnering with an investment bank or advisory firm specializing in middle-market deals can provide valuable insights and support throughout the process. These firms can offer guidance on valuing, financing, and executing transactions, as well as assist with due diligence, negotiation, and integration efforts. By leveraging external expertise, you can improve your chances of success and navigate the complexities of the M&A process more effectively.

Post-Acquisition Integration

A successful M&A transaction extends beyond the signing of the deal, as the post-acquisition integration phase is crucial to realizing the full value of the merger or acquisition. By developing a comprehensive integration plan that covers areas such as organizational structure, technology systems, and cultural alignment, you can facilitate a smooth transition and ensure that the combined entity achieves the desired synergies and growth objectives.

Risk Management

M&A transactions inherently carry a level of risk, including financial, legal, and operational risks. To mitigate these risks and enhance the likelihood of a successful deal, it’s essential to develop a robust risk management strategy. This may include conducting thorough due diligence on potential targets, engaging with experienced advisors to navigate legal and regulatory issues, and implementing contingency plans to address unforeseen challenges during the M&A process.


Discovering opportunities in M&A for mid-market businesses requires a combination of strategic thinking, diligent research, disciplined execution, and effective risk management. By adopting a structured approach, clearly defining your strategy and investment criteria, leveraging external expertise, and focusing on post-acquisition integration, you can uncover hidden opportunities and capitalize on the potential for growth, diversification, and increased market share. As the business landscape continues to evolve, staying proactive and agile in your M&A efforts will be key to staying ahead of the competition and securing a prosperous future for your organization. By applying the insights and guidance provided in this article, business owners, deal teams, and CFOs can enhance their ability to identify and seize M&A opportunities that drive long-term success.

How can Eton help?

At Eton Venture Services, we are committed to providing you with tailored valuation and financial advisory services that align with your unique objectives. Don’t settle for generic software models or inexperienced teams when it comes to the critical financial valuations involved in mergers and acquisitions. Trust Eton’s team of experts to deliver in-depth, data-driven assessments that enable you to make well-informed decisions and maximize the value of your company in an M&A exit. Join the industry leaders who have already benefited from our exceptional client service and advisory expertise. Let us guide you through the complexities of discovering opportunities in M&A. Contact Eton today.

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President & CEO

Chris co-founded Eton Venture Services in 2010 to provide mission-critical valuations to venture-based companies. He works closely with each client’s leadership team, board of directors, internal / external counsel, and independent auditor to develop detailed financial models and create accurate, audit-proof valuations.

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