We all know how well the stock market is doing on any given day. All we have to do is pull out our phone or turn on the TV. What happens if you want to know how well the middle market of private businesses are doing? Where would you find the data? It’s not as easy as pulling out your phone, which is exactly why we did today’s interview.
The middle market (businesses from $5 million to $1 billion) make up one-third of the US GDP. If this segment of companies was its own country, it would be the fifth largest GDP in the world. Even with the sheer size of the market, these companies don’t get a lot of attention; therefore, there is limited data, insights, and leading indicators on the overall health of over one-third of the US GDP.
Today, Doug Farren, Director of The Center for the Middle Markets, is on the show to share the results of their semi-annual Middle Market Indicator (MMI) where they surveyed 1,000 middle-market companies.
Doug reviewed the results of the MMI, discussed the five focus areas of the report (listed below), and how well the middle market is doing compared to over ten-plus years of the survey. Along with diving into the MMI, Doug also shares the findings of a new report they just wrapped up called “Owner Transitions in the Middle Market.”
Because of how big the middle market is, if something big were to happen in that part of the economy, it affects all of us. That’s why these reports and what the National Center of the Middle Market is doing are so important.
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Doug Farren joined The Ohio State University Fisher College of Business after an 11-year career at Limited Brands, where he most recently served as senior manager of supply chain planning. His responsibilities included developing the supply chain network and planning/allocation functionality for inventory to support three distinct international store channels. Farren started with Limited Brands as a summer intern while completing his MBA in Operations and Logistics Management at Fisher. Farren’s previous experience includes work for Six Sigma Qualtec, a process improvement consulting firm based in Scottsdale, Arizona.
His primary functions included marketing strategy, new client relationships, and on-site training and implementation. As part of his responsibilities, he was certified in 1998 as a Six Sigma Black Belt in Transactional Quality. Farren holds a Bachelor of Science in Marketing from Penn State University, where he was a member of the football team as an athlete and student assistant under Joe Paterno. He is an active member of the Penn State Football Letterman’s Club.
14:50 - “The middle market is everywhere.” - Doug Farren
20:11 - "The report is just the tip of the iceberg." - Doug Farren
27:00 - “12.2% revenue growth is the highest we’ve seen." - Doug Farren
41:05 - “Most business owners that sell are reinvesting (into new businesses)." - Doug Farren
53:12 - “(Big Fortune 500 companies) are reaching out for help on how to better understand the middle markets." - Doug Farren
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