In a recent article for Forbes, Ronald Shechtman, Managing Partner of Pryor Cashman and a member of the Forbes New York Business Council, examined the unique opportunities and challenges facing midsize companies in today's market. 

(Excerpts from the full article are published below)

For many reasons, it's good to be a midsize business these days.

Let's start with the data. In the first quarter of 2018, the RSM Middle Market Business Index, a metric that gauges conditions in the middle market, reached an all-time high of 136.7 (readings over 100 indicate growth). This statistic dovetails with other findings, including a recent survey that revealed that middle-market executives are now more optimistic about their growth prospects than at any other point in the last three years. Similarly, the National Center for the Middle Market reported that year-over-year growth at midmarket companies reached 8.4% in Q1 2018 — the second-highest rate recorded since 2012. (It slowed minimally in Q2, to a still-robust 7.4%.)

These numbers aren't just strong in absolute terms; middle-market firms also outpaced relative growth seen by much larger companies, including the S&P 500, which they've surpassed every single quarter over the last five years.

But the data are not the only reason I believe fortune is now favoring midsize companies. As a lawyer to them, I see firsthand how confidence in the market is shaping plans for expansion. I am also part-owner of a midsize business myself, a law firm that is riding a wave of momentum that many midsize companies are enjoying.

What's Fueling This Success?

There are several forces driving this wave. Some apply to midsize businesses across the board —like federal tax policy and consumer confidence — while others are more industry-specific. We know, for instance, that in the restaurant space, consumer tastes are moving away from large national brands. For a number of reasons — including the modern appreciation for sustainably and locally raised foods — structural forces are working against massive restaurant chains in favor of those that feel more in touch with their communities. This dynamic has reached a point in the mainstream where Legal Sea Foods, with its 38 locations, produced a (humorous) commercial explicitly rejecting the "chain" label.

In my own industry, a similar phenomenon is occurring. Corporate clients are beginning to question a long-held assumption that the largest firms with the highest rates provide the best legal services. Indeed, a study by AdvanceLaw has shown the opposite. In a review of 1,400 legal matters at the 200 largest firms in the United States, the 20 biggest (which form the true top of the legal industry, in terms of scale) trailed the rest of the group on key measures of legal service: outcomes, quality of work, efficiency, responsiveness and a focus on solutions. The bottom line is that these clients are now far likelier to recommend firms in the second hundred in terms of size than the top 20.

Of course, it's not all roses for the middle market. We face our share of obstacles, particularly around growth and share of voice within the wider market. But there are things businesses can do to overcome these challenges.

The full article can be read here.

More About Shechtman's Practice

Named a "Distinguished Leader" by the New York Law Journal and recognized as one of the 20 most powerful employment lawyers in the country by Human Resources Executive, Ronald Shechtman has served as the managing partner of Pryor Cashman since 2007. Under his stewardship, the firm has been named the #1 midsize law firm in New York by Vault.

Learn more about Ron's work here.

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