In July, the National Center for the Middle Market at Ohio State University released its Mid-Year report, revealing that there were about 200,000 middle market companies across the United States in 2024. The average age of these firms is 30 years, with a median age of 23.
The data suggests that while daily events can significantly affect middle market businesses, their long-term planning extends well beyond short-term fluctuations. According to a Texas banker with nearly two decades of experience serving companies with annual revenues between $25 million and $2 billion, building long-term relationships with financial institutions is key to aligning banking services with business needs.
Establishing such relationships requires effort from business leaders. This includes conducting targeted research and communicating clearly to define their company’s vision. The banker emphasized that trust and understanding are fundamental for successful partnerships: “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 banking relationship managers can disrupt progress, as it often takes significant time to bring new partners up to speed on a company’s priorities and history. While periodic reviews are important, frequent changes may hinder focus on strategic goals.
To avoid these disruptions and benefit from lasting value, companies should seek banks capable of supporting their growth through a range of products and services while maintaining a culture that retains top talent. “The ideal relationship should give a company access not only to a strong collaborative partner, but to the bank’s leadership and customized product and service partners who are familiar with a business’s goals,” said the banker.
Effective communication also plays an essential role in moving from basic service provision to advisory relationships. March 2025 will mark five years since the World Health Organization declared COVID-19 a pandemic (https://www.cdc.gov/museum/tim…). During this period, businesses shifted rapidly from in-person meetings to virtual interactions—a change that has persisted even after restrictions eased.
However, virtual tools have not replaced face-to-face connections entirely. “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,” said the banker.
Companies must also regularly evaluate whether their banking services align with future goals rather than just present needs. They should review not only available products but also assess if relationship managers possess relevant expertise and commitment: “They should ask: Does this banking partner have the expertise and are they willing to invest the time to understand our business, industry, and vision, and are they committed to helping our company achieve its goals?”
According to the banker’s experience, strong banking relationships often develop during challenging times when creative solutions become necessary: “Relationships are easy when profits are up and targets are reached; it’s when challenges arise…that value is tested.” By following these steps—researching banks’ cultures, prioritizing communication, evaluating alignment with long-term visions—businesses can improve their chances for success.
“As a business, identifying that partner who will be there in good times and bad…can be the difference between surviving and thriving,” concluded the banker.
