Mark Hauser is a private equity investor and fund manager in many years of investing and operating company experience. Mark Hauser, co-managing partner of Hauser Private Equity, discusses private equity transactions.How They Work and Why they are Beneficial
A private equity transaction is an exciting opportunity for expansion, growth, and success. It can be an excellent way to take a small business to the next level. In contrast, lending money or buying a competitor can also be a viable option when financing and acquiring companies have not been successful options in the past. The highly diverse investment industry encompasses multiple types of investment entities and objectives.
Private equity is a great way to raise the capital and get access to a high level of capital, many times more than would be available to any one individual. Private equity has been around since the 1800s, but now it is quickly becoming the primary form of raising capital in business. The term “private equity” comes from two sources: private ownership and investment. It is a way of purchasing ownership interest in businesses (including controlling interest) in lieu of selling securities on an open market.
Private equity firms also make it possible for companies that are unable to obtain financing at reasonable terms or for new companies with limited ability to obtain funding from experienced investors. However, these firms may charge a fee to investors in addition to the return on their investment.
The goal of private equity is generally the same as that of other types of investment: generate profit, either through price appreciation or by successfully operating the company. It is not uncommon for a private equity firm to purchase only part of a company, for example, through buying out a minority interest or by acquiring shares from existing owners. It is also possible for a private equity firm to acquire an entire company. In many cases both methods are used at once. Most private equity firms’ focus is on generating profit and providing some assurance that the company will have continued growth and profitability into the future (although some firms focus more on financial details and stability).
Mark Hauser has continuously mentored high school, college, and post college young adults over the past 20 years. There is nothing he fears more than the thought of a young person not getting a quality education. He believes in being accountable to the community you serve, and to make that same commitment to your students. One way Mark Hauser hopes to inspire his students is by giving them the opportunity to see him step out of his shoes and into theirs. This allows them to view their education through different eyes, and understand how private equity can help you get where you want to be in life.