Main Street

Main Street refers to the classification of a business for valuation purposes and generally is defined as businesses with annual revenue under $5 million. As a seller, knowing whether your business is categorized as a Main Street business or the next tier up, which is the Lower Mid-Market tier, will affect many aspects of your sale. It will affect who you use to help you market your business (usually a business broker, as opposed to a M&A Advisor or Investment Banker), what kind of buyers you will attract (mostly individual entrepreneurially minded professionals or serial entrepreneurs and less frequently strategic buyers), what kind of financing they will need (usually quite a bit, and most often through an SBA-backed loan), and even the likely complication of the transaction.