In July, the National Center for the Middle Market at Ohio State University reported that there were about 200,000 middle market companies in the United States in 2024. The average age of these firms is 30 years, with a median of 23 years. This data suggests that while day-to-day events affect these businesses, their planning often looks much further ahead than short-term fluctuations.
A Texas banker with nearly two decades of experience serving middle market businesses—from $25 million to $2 billion in annual revenue—shared insights on how long-term banking relationships align more closely with these companies’ strategic needs. According to this perspective, building such relationships requires business leaders to conduct targeted research and maintain clear communication about their company’s vision.
The banker outlined several steps for companies seeking value from long-term banking partnerships:
First, it is important for businesses to research banks that emphasize culture and prioritize lasting client relationships. “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.” Changing relationship managers can be disruptive and time-consuming because it takes a long period to educate new managers about a company’s history and objectives. Companies are advised to find banks capable of supporting their growth with diverse services while maintaining stability among staff.
Second, communication plays a critical role in moving beyond transactional service toward advisory relationships. The COVID-19 pandemic forced many businesses into virtual meetings starting in March 2020 when the World Health Organization declared a global emergency (https://www.cdc.gov/museum/tim…). While virtual tools have remained common since then, they do not fully replace face-to-face interactions. “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.”
Third, evaluating whether banking services match a company’s vision is essential. Businesses are encouraged not only to review products and services but also assess if their bank’s representatives have industry expertise and commitment to understanding company goals.
Finally, strong banking relationships are often tested during difficult times rather than periods of success. “For many of the middle market companies I have worked with, the deepest banking relationships are forged during hard times.” Identifying partners who remain engaged through challenges can help determine whether a business merely survives or thrives.
The advice concludes by emphasizing the importance for businesses to choose partners willing to invest resources into mutual success: “As a business, identifying that partner who will be there in good times and bad, who will communicate with a desire to understand the issues at hand, and who will invest their resources to help achieve company goals, can be the difference between surviving and thriving.”
