In July, the National Center for the Middle Market at Ohio State University released its Mid-Year report, revealing that there were about 200,000 middle market companies across the United States in 2024. The report noted that these firms have an average age of 30 years and a median age of 23 years.
These figures highlight that while daily events can affect middle market businesses, their approach to planning is often focused on longer-term strategies rather than short-term fluctuations.
A Texas banker with nearly two decades of experience serving middle market companies—those with annual revenues between $25 million and $2 billion—emphasized the importance of establishing lasting relationships between businesses and financial institutions. According to this perspective, long-term partnerships allow banks to better align their advice and services with the unique characteristics of each company.
The process begins with business leaders conducting targeted research and communicating clearly about their company’s vision. Selecting a bank that values culture and prioritizes enduring client relationships is considered crucial. “From my insider’s view, the ideal banking-client relationship is built on trust and understanding of the company’s growth and financial goals. Getting there takes time – literally years. And that’s much harder to accomplish at financial institutions that experience high turnover,” said the banker.
Changing banking relationship managers can be disruptive for companies because it requires re-educating new partners about company goals, priorities, challenges, and history. Frequent changes may also distract from core business objectives. Therefore, finding a bank able to support growth through a range of services while maintaining a stable team is seen as beneficial.
“The ideal relationship should give a company access not only to a strong collaborative partner, but to the bank’s leadership and customized product and service partners who are familiar with a business’s goals,” according to the same source.
Effective communication is another key element in shifting from merely receiving services to forming an advisory relationship with banks. March 2025 will mark five years since the World Health Organization declared COVID-19 a pandemic (https://www.cdc.gov/museum/tim…). In response to this event, many businesses shifted from in-person meetings to virtual communication tools. However, despite ongoing use of digital channels after the pandemic’s onset, in-person interactions continue to provide greater value for building understanding and deeper connections.
“My view: Businesses should consider the value of periodic in-person meetings and collaborations with their banking partner. While virtual engagement may be easier to coordinate, face-to-face communication affords deeper understanding and relationship-building,” said the banker.
Evaluating whether current banking services match company needs remains challenging even during stable periods; anticipating future requirements adds complexity. Many companies mistakenly focus only on present-day criteria when assessing banking relationships instead of considering future growth ambitions or seeking partners willing to invest time in learning about their industry sector.
Companies are encouraged not only to review products or subject matter expertise but also assess if potential banking partners demonstrate commitment by investing effort into understanding both industry trends and specific corporate visions: “Does this banking partner have the expertise and are they willing to invest the time to understand our business, industry, and vision, and are they committed to helping our company achieve its goals?”
Long-lasting partnerships often prove most valuable during difficult times when creative solutions become necessary. “For many of the middle market companies I have worked with, the deepest banking relationships are forged during hard times… by following these steps… businesses can help strengthen their chances of success.”
Ultimately, selecting a bank willing to support companies through both prosperous periods and challenging moments can influence whether those businesses simply survive or go on to thrive.
