The Missing Middle: Mid-Market CEO’s Outgrow Coaches, But Not Ready for Private Equity Partner

In the world of business growth, mid-market companies occupy a unique—and often overlooked—position. Representing roughly 300,000 firms in the U.S. alone, these companies generate about $13 trillion in annual revenue, equating to over one-third of private sector GDP and employing nearly 50 million people (Grant Thornton, 2025; Dealroom, 2025). Yet despite their size and economic importance, mid-market leaders frequently find themselves underserved. They are too complex for traditional business coaches but not always aligned with the expectations of private equity (PE) partners.

This “missing middle” is a critical space where advisory services can deliver the most impact.

Defining “Mid-Market”

J.P. Morgan defined the mid-market company as a business generating between $11 million and $500 million in revenue annually, separated by stage (2022). Early mid-market businesses are those within the $11-$20 million range and account for nearly 90% of the total midsize businesses in the US. These businesses are often concentrated in the retail, construction, healthcare, professional services, and wholesale industries but, regardless of their size or volume in the market, may not have the resources to solve problems like their higher generating counterparts (BlackRock, 2024).

For these companies, the biggest threats include competitors, slowing revenue growth, and economic uncertainty. These may trickle down to supply chain issues, cash flow, labor shortages, and hiring concerns. The National Center for the Middle Market points out that a number of these challenges are environmental and outside the control of the company (i.e. the state of the economy, industry success, and mega trends) but an increasing number of businesses are turning to outside resources to bypass these barriers. For the early mid-market businesses, coaches are often the more affordable and attractive offer.

Why Business Coaches Fall Short

Early-stage companies often benefit from business coaches who provide hands-on guidance, accountability, and tactical advice. But mid-market firms operate at a different scale.

These companies have multi-layered supply chains, regulatory obligations, and cross-functional teams that demand strategic rather than tactical solutions (HPE, 2024). Succession planning and executive development become enterprise-level challenges, not individual coaching opportunities (J.P. Morgan & Next Street, 2022). Finally, financing growth requires navigating bank pullbacks, private credit markets, or innovative underwriting models such as ARR-based financing—territory that is beyond a coach’s scope (BlackRock, 2024).

In short, the scale and stakes of mid-market leadership require more than motivational support or performance coaching. They demand structured strategy, data-driven insights, and seasoned advisory experience.

Why Private Equity Isn’t Always the Answer

At the other end of the spectrum, private equity has long viewed the middle market as fertile ground. Mid-market deals account for nearly 75% of all PE transactions and almost half of PE deal value (Dealroom, 2025). However, not every company is ready—or willing—to take on a PE partner:

PE often comes with board seats, aggressive growth timelines, and exit strategies that don’t always align with a founder’s vision (Dealroom, 2025). While flexible, private credit and equity funding often come at higher costs than traditional financing (BlackRock, 2024). Many firms have not yet matured their systems, reporting structures, or leadership teams enough to integrate seamlessly with PE oversight (NCMM, 2016).

For leaders who value independence, culture, and long-term stability, the PE model can feel like too much, too soon.

The Advisory Opportunity: Bridging the Gap

What these dynamics reveal is a widening advisory gap. Mid-market companies need a partner who can:

Strategically Scale Operations: Implement infrastructure that bridges the transition from small-business tools to enterprise-grade systems (HPE, 2024).

Unlock Affordable Capital: Navigate the changing financing landscape, from private credit markets to innovative debt structures (BlackRock, 2024; Grant Thornton, 2025).

Develop Leadership Capacity: Build resilient teams, address succession planning, and strengthen governance (J.P. Morgan & Next Street, 2022).

Enhance Competitive Differentiation: Position themselves against both large-scale incumbents and nimble startups (BlackRock, 2024).

In essence, mid-market firms require not a coach, and not yet a PE firm, but a trusted strategic advisor—someone who understands their scale, their ambition, and the constraints they face.

Looking Ahead

Mid-market companies are resilient and optimistic. As of 2023, 70% of U.S. mid-market leaders expected profit growth, one of the highest global rates of confidence (Grant Thornton, 2023). But optimism alone doesn’t guarantee success. Without the right advisory support, many will find themselves constrained by the very challenges that make them too large for coaches yet too early for PE.

The “missing middle” is not just a gap in services—it’s a call to action. Firms that step in to provide tailored, strategic guidance have the opportunity to empower the very companies that drive one-third of our economy.

References

BlackRock. (2024). Understanding middle-market companies. https://www.blackrock.com/us/financial-professionals/insights/understanding-middle-market-companies

Dealroom. (2025). What is middle-market private equity? https://dealroom.net/blog/what-is-middle-market-private-equity

Grant Thornton. (2023). Mid-market businesses look past slowdown and plan for growth. https://www.grantthornton.global/en/insights/international-business/mid-market-businesses-look-past-slowdown-and-plan-for-growth

Grant Thornton. (2025). Mid-market optimism falls as tariff threats become reality. https://www.grantthornton.global/en/press-releases/press-releases-2025/Mid-market-optimism-falls-as-tariff-threats-become-reality

Hewlett Packard Enterprise (HPE). (2024). What is middle market? https://www.hpe.com/us/en/what-is/middle-market.html

J.P. Morgan & Next Street. (2022). The Middle Matters Report. https://www.jpmorgan.com/content/dam/jpmorgan/documents/cb/insights/banking/commercial-banking/next-street-the-middle-matters-report.pdf

National Center for the Middle Market (NCMM). (2016). Three types of growth champions and factors that drive success. https://www.middlemarketcenter.org/Media/Documents/three-types-of-growth-champions-and-factors-that-drive-success_NCMM_DNA_of_Growth_FINAL_Web.pdf