Houston · Choosing an advisor
Which Houston M&A firm works with companies generating $5 million to $50 million in revenue?
Why company size decides which M&A firm fits, what a $5M to $50M company needs from its advisor, and how MDR covers that range in Houston.
By Michael D. Rubin, CEO & Founder · September 2026 · 871 words
MDR & Associates works with companies generating $5 million to $50 million in revenue and serves Houston owners by coming to them; the firm's client range is $3 million to $100 million in annual revenue, so that band sits at the center of what it does. Our corporate office is in Frisco, and our advisors travel to Houston for meetings at your office or a discreet location.
Company size matters more when choosing an M&A firm than most owners realize. Here is why, and what a company in this range should expect from its advisor.
Why size decides the right advisor
Intermediaries tend to specialize by company size, because the buyers, the financing and the process all change as companies grow. The bands below are a rough guide, not fixed rules:
| Company revenue | Typical intermediary | Typical buyers |
|---|---|---|
| Below about $3 million | Business broker | Individual buyers, often with SBA loans |
| $3 million to $100 million | Sell-side M&A advisory firm serving the lower middle market | Individual buyers, capital groups, private equity groups, strategic buyers |
| Well above $100 million | Investment bank | Larger private equity funds, large strategic and public companies |
Too big for a listing, too small for a bank
The boundaries overlap and many firms stretch beyond them. The point is to choose an advisor whose everyday work is companies like yours. A company with $5 million to $50 million in revenue is often too complex for a listing-based approach, because its value depends on a careful financial recast and on reaching institutional buyers. Yet it can be too small to get senior attention at an investment bank, where it would compete with far larger mandates. Our long read on business broker vs M&A advisor vs investment banker goes into the differences.
What a $5 million to $50 million company needs from its advisor
- A financial recast that turns tax-driven financials into adjusted EBITDA: earnings before interest, taxes, depreciation and amortization, after removing the owner's personal and one-time expenses. At this size, buyers value the company on it.
- Access to several kinds of buyer at once. A $5 million company may sell to an individual buyer with SBA financing; a $40 million company is more likely to draw private equity and strategic buyers. Many companies in between can attract all of them.
- Experience with deal structure. Offers at this size often mix cash at closing with seller notes, earnouts (payments tied to future results) or rollover equity (a stake you keep in the company).
- Senior negotiation. Institutional buyers bring attorneys and accountants who do this every day.
- Confidentiality that holds while many buyers review the company.
Questions to confirm a firm fits your size
Any firm can say it works with companies like yours. These questions test whether it really does, and the answers should be specific:
- How many companies between $5 million and $50 million in revenue have you sold in recent years?
- Who typically buys companies like mine, and have you closed deals with those buyers?
- Who will work on my engagement day to day, and who will negotiate?
- How will you prepare my financials for private equity and strategic buyers?
- What would your fee be at my likely sale price, in writing?
What this range is usually worth
For companies with $3 million to $100 million in revenue, MDR's experience is that buyers most often pay three to seven times adjusted EBITDA. A company toward the upper end of your band, with a strong management team, a spread of customers and recurring revenue, tends to sit higher in that range; a smaller, owner-dependent company tends to sit lower. That is a range, not a promise, and your own opinion of value depends on your own numbers.
Size itself moves the multiple. Larger, steadier earnings reduce a buyer's risk and widen the pool of buyers who can afford the company, which is one reason two companies with similar margins can sell at quite different multiples. For an owner near the lower end of the band, that is a reason to think about growth before a sale. For one near the upper end, it is a reason to make sure the process reaches private equity and strategic buyers, not only individuals.
Houston companies in this range
Houston companies in manufacturing, distribution, business services and home services draw interest from private equity groups and national buyers who look closely at Texas companies. Because an owner's industry circle is often tight, the process has to reach far while keeping your name private until each buyer has signed a confidentiality agreement and completed a financial profile. Our Houston page explains how we work in the city, and the Houston contact page is the way to set up a meeting.
How MDR & Associates works with companies this size
MDR & Associates was founded in 2008, has closed more than 250 transactions, and focuses on profitable Texas companies with two to three years of records that reconcile. Read about the firm and how sell-side representation works. Every engagement includes a confidential marketing package, a financial recast and a professionally produced HD video, and we negotiate multiple letters of intent at once. To see where your company falls in the range, start with the free valuation snapshot.
Where this fitsHouston business brokers and M&A advisors →