Mark Hauser Talk on Private Equity Transactions

You are not alone if you’re intimidated by the idea of a private equity transaction. It can seem complicated and confusing, so it’s important to understand what is happening, as well as how it affects you.

Mark Hauser, a CEO and entrepreneur has been involved in private equity transactions since the 1980s. He shares his expertise with us on his website MarkHauser.com with this new article that goes into detail on what those transactions entail, how they work and why they do them.

For example, Hauser explains the difference between an initial public offering and private equity. He says that while IPOs are when a company goes on a stock exchange and is traded, an IPO is open to everyone. However, he says that the purpose of private equity is to let those in on the transaction only.

Sometimes companies end up being acquired by another company, and Hauser goes into detail as to why they do it by comparing it to someone buying a home. He says that some people choose to sell their home and live in a different one with a new mortgage. But others like the convenience of renting and just paying their monthly rent without having to worry about owning a home.

Mark Hauser also compares private equity transactions to someone buying a business that is already established versus starting a new business from the ground up. He says that many times, it’s easier and more secure to buy an established successful company because they already have a reputation, while starting something new could prove risky.

Mark Hauser gives other reasons why companies choose this option over an IPO, like the freedom from having shareholders, as well as being able to close their doors if they need to get away from stress or failures.