Why are Midsize Companies Important in Any Economy?

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WHY IS THE

MIDMARKET IMPORTANT?

March 3, 2013 ©The Midmarket Institute 2013 1

WHAT is the American

MIDMARKET? March 3, 2012 2

COMPANIES with revenues of

$10 M - $1B USD and

100-5000 employees

#1

March 3, 2012 ©The Midmarket Institute 2013 3

There are about

197,000 *

#2

Midmarket companies in the U.S.A

*only 3% of all U.S. companies are in the Midmarket

March 3, 2012 ©The Midmarket Institute 2013 4

have total revenues of

$3.9 Trillion *

#3

(33% of private sector GDP)

Midmarket companies

*OSU Fisher School Data

March 3, 2012 ©The Midmarket Institute 2013 5

40 Million *

#4

(34% of total non-government employment

Midmarket companies employ

*Latest U.S. Census Bureau figures

in the U.S.)

March 3, 2012 ©The Midmarket Institute 2013

6

Why is the

MIDMARKET important?

March 3, 2012 ©The Midmarket Institute 2013 7

GROW They have more room to

than larger companies

March 3, 2012 ©The Midmarket Institute 2013 8

They are more likely to

survive and grow than smaller companies

March 3, 2012 ©The Midmarket Institute 2013 9

They tend to

add jobs

March 3, 2012 ©The Midmarket Institute 2013 10

in their HOME MARKETS

MORE SUSTAINABLE JOBS They add

than larger & smaller companies

March 3, 2012 ©The Midmarket Institute 2013 11

COMMUNITY They have strong roots in their

March 3, 2012 ©The Midmarket Institute 2013 12

THEY SPEND A LOT Vendors big & small want to get to them (seen the recent ads in the papers, the radio and tv about the midmarket?)

March 3, 2012 ©The Midmarket Institute 2013 13

HIGHER MARGINS They are loyal customers providing

Smart vendors see this as THE segment to chase

March 3, 2012 ©The Midmarket Institute 2013 14

rather than foreign ones – and tend to stay with their suppliers longer than many larger companies do

March 3, 2012 ©The Midmarket Institute 2013 15

They tend to

have domestic suppliers

Many of them are

fast growing - need help to GROW!

March 3, 2012 ©The Midmarket Institute 2013 16

THE MIDMARKET is the

of every country’s economy. Ram V. Iyer

Founder & President The Midmarket Institute

THE GROWTH ENGINE

March 3, 2012 ©The Midmarket Institute 2013 17

UNIQUE CHALLENGES Midmarket companies have

March 3, 2012 ©The Midmarket Institute 2013 18

WHERE is the

MIDMARKET?

March 3, 2012 ©The Midmarket Institute 2013 19

MOUNTAIN PLAINS 5.7%

WEST 18.6%

SOUTH WEST 10.6%

SOUTHEAST 16.4%

MID ATLANTIC 10.1%

NEW ENGLAND 6%

MIDWEST 20.9%

NY / NJ 11.7%

197,000 BUSINESSES BETWEEN $10MM—$1B

$3.9 TRILLION (33% of PRIVATE SECTOR GDP)

4th LARGEST ECONOMY IN THE WORLD

43.1 MM JOBS NET JOB CREATOR THROUGH THE CRISIS

82% SURVIVORSHIP 70% IN BUSINESS FOR 20+ YEARS

Public

18%

82%

Private Source: Ohio State University, NAMM

March 3, 2013 ©The Midmarket Institute 2013 20

Midmarket - Structure and Geography

31.3%

Services

0.7%

0.6%

12.4%

Mining

Retail

Wholesale

Construction

Manufacturing

Transport & Communication

Financial Insurance & Real Estate

Holding Companies

Agriculture, Forestry & Fishing

5.4%

17.3%

8.4% 0.8%

13.8% 9.3%

Source: Ohio State University Fisher School of Business

Industry Concentrations of Midmarket Companies

March 3, 2012 ©The Midmarket Institute 2013 21

WHAT IS THE

MIDMARKET INSTITUTE?

March 3, 2012 ©The Midmarket Institute 2013 22

The HUB for midsize companies, suppliers, capital providers,

advisors and influencers worldwide

Founded circa. 2009

Click to watch video on importance of midmarket (and what we do)

March 3, 2012 ©The Midmarket Institute 2013 23

Our Websites • Membership site focused entirely on

the midmarket • Has many communities of midsized

companies, vendors and influencers to midsized companies

• Has largest collection of content on the challenges of the midmarket

• Has special NICHE sites for various prominent midmarket niches – CEOs, CFOs, IT, Resellers, Midmarket high growth companies, exporting, family owned businesses, employee owned businesses, etc.

• Largest virtual marketplace that brings together midmarket buyers and sellers – open 24/7

• Will host periodic special events on specific segments of midmarket (for targeting)

• Has special sections for Private Equity Investors, Consultants, Financial Advisors, Resellers, Suppliers, etc.

March 3, 2012 ©The Midmarket Institute 2013 24

www.midmarket.org www.midmarketworld.com

March 3, 2012 25 ©The Midmarket Institute 2013

COMMUNITY HUB Bringing midmarket companies, suppliers,

advisors, capital providers, influencers & job seekers together.

Help to overcome business challenges – with content, tools, events and experts

COMMERCE HUB Buy, sell & partner 24/7, 365 days a year

SOLUTIONS HUB ?

www.midmarket.org

www.midmarketworld.com

What Do We PROVIDE?

©The Midmarket Institute 2013

March 3, 2012 26 ©The Midmarket Institute 2013

Leverage Mi Page – Each member has a personal page showing their top challenges and new solutions every day from our Knowledge

Center, Business Tools, Community, Events and Marketplace.

SOLUTIONS HUB

March 3, 2012 27 ©The Midmarket Institute 2013

Alan Tonelson, Research Fellow, The U.S. Business and Industry Council

Michael Erwin President

Tailored Label Products

Michael Werner President & CEO

Globe Union Group, Inc.

Jack Stack, Founder & CEO, SRC Holdings

Mohit Uberoi President MEGTEC Systems

Keith Campbell Chairman, Mannington Mills

March 3, 2012 ©The Midmarket Institute 2013 28

American Thought Leaders Interviews

European Thought Leaders Interviews

Left: Midmarket Institute President Ram V. Iyer meets with third and

fourth generation leaders of Glasbau Hahn, Mr. Till Hahn and

Ms. Isabel Hahn.

Left: Professor Dr. Hermann Simon discusses outsourcing strategy with Midmarket Institute President Ram V. Iyer.

Above: Prof. Dr. Bernd Venohr talks about the

Mittelstand model.

Below: Dr. Patrick Adenauer, President of ASU, talks about the strengths of German family businesses.

Photo: Anushka Iyer

March 3, 2012 ©The Midmarket Institute 2013 29

March 3, 2012 30 ©The Midmarket Institute 2013

Companies Expanding Across America: 1. Have Increased Revenues 2. Hire More American Suppliers 3. Hire More Americans 4. Increase Wealth for Individuals, Businesses & Local Communities

www.midmarketworld.com

FUTURE:

Job Board Partnerships

March 3, 2012 31 ©The Midmarket Institute 2013

March 3, 2012 32 ©The Midmarket Institute 2013

Special NJ Vendors Directory

FUTURE: 1. Business Services 2. Econ. Dev. Orgs. 3. Chambers of Commerce 4. Resellers

Midmarket Directory

March 3, 2012 33 ©The Midmarket Institute 2013

SAMPLE BOOTH

Feb 5, 2013 33 ©The Midmarket Institute 2013

• Midsize Companies

• Suppliers to Midsize Companies

• Advisors & Consultants to Midsize Companies

• Capital Providers to Midsize Companies

• Influencers of the midmarket

• Government Agencies

• Education Institutions

• Media Organizations

• Associations

• Unions

• Individuals interested in the midmarket

Come and join us – if you are:

…become a MEMBER today! March 3, 2012 ©The Midmarket Institute 2013 34

Ram V. Iyer Founder & President

5 Independence Way Suite 300 Princeton, NJ 08540 info@midmarket.org

Phone: (609) 275 6300 Fax: (609) 916-1324 www.midmarket.org

Check out our presentation ‘About The Midmarket Institute’ March 3, 2012 ©The Midmarket Institute 2013 35

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