Middle Market Companies Represent Enormous Growth Potential By Gary Pagar, CEO, TriCanyon Capital, LLC

March 26, 2013

Middle market companies represent approximately forty percent of the United States workforce and gross domestic product and are central to national economic recovery and growth.

Their financial strength in relation to their overhead, balance sheet, operational agility and flexibility often allows them to more readily adapt to meet the demands of changing markets. Reports indicate that middle market organizations prove more resilient to economic conditions, with more than sixty percent of these companies reporting growth and an even greater number planning for continued expansion over the next two years.

Middle market companies generally possess greater resources than small businesses in the same industry. As a result, these organizations are often better positioned to withstand economic slowdowns and sector difficulties than are small business. More so than small companies, they are able to capitalize on market contractions and position themselves for growth as the economy recovers, often increasing market share during a downturn. Their relatively stronger balance sheets allow them to attract talent and implement innovations more easily during a downturn, acting with a more offensive, rather than defensive, posture and exhibiting a longer-term tactical and strategic orientation.

Unlike many multinational and enterprise-class corporations, which have enormous fixed overhead (and often quarterly earnings pressure as publicly traded companies), middle market companies are often nimble enough to adapt to changing market conditions without placing undue stress on their organizational structure or the morale of their employees.

As the economy has now exhibited signs of sustained, albeit slow and somewhat tentative growth, many middle market companies are well positioned for growth and represent excellent investments.

About Gary Pagar: Gary Pagar is founder and Chief Executive Officer of TriCanyon Capital, LLC, a Los Angeles-based boutique investment banking and merchant banking firm focused on middle market and emerging growth companies. With more than 25 years of investment banking and private equity investment experience, Mr. Pagar and his team work closely with companies to develop their strategic and capital growth plans.

During his career, Mr. Pagar has completed equity and debt financings and merger & acquisition transactions with a combined value in excess of $4 billion. Prior to forming TriCanyon, he spent several years as Chairman of MedFirst, an affiliate of Goldman Sachs, and as a partner at the Tribeca Group, a private equity firm investing in middle market companies. He began his career at Merrill Lynch and Oppenheimer. Mr. Pagar’s business successes have been recognized over the years by several leading business journals, including Fortune Magazine, The New York Times, and Crain’s Business Journal, where he was recognized with their inaugural 40 Under 40 award. Mr. Pagar is also a recipient of Ernst & Young’s Entrepreneur of the Year Award and was a long-time member of the Young Presidents Organization (YPO). Gary Pagar was educated at the University of Rochester (and later served two terms as a member of its Trustees Council) and the graduate division of the Wharton School of the University of Pennsylvania.

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