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Mark Hauser, Financial Expert

Mark Hauser is an expert in financial transactions. He has served in the industry for an extended period and has gained vast skills. Mark is also an expert in the private equity sector. Mark has been helping individuals to understand how private equity companies operate and how an organization can acquire a private equity firm. This article focuses on how to consider the process of purchasing a private equity firm. Mark Hauser mentioned that it is vital to understand how private equity organizations work. When a group is interested in buying a private equity firm, they can only buy the whole organization and not part of the company. Anyone or any company wanting to purchase a private equity firm must follow the following procedure.

Profile of a Private Equity Investment Deal

Private equity groups are established with the primary purpose of making revenue in each investment, so when selecting an investment, they must choose one that brings adequate returns. Mark Hauser noted that a private equity firm finds investors through three channels: an investment bank that represents a particular investor, through its networks, or other proprietors. The private equity organization can also contact the potential customer for acquisition.

Conducting Due Diligence

Before dealing with the potential customer, a private equity firm must carry out due diligence to check the profile and the performance of the potential investor. The due diligence is conducted into categories as listed below.

  1. Legal, due diligence is to check if the company is tangled in any possible obligation matters. The issues may include endangered or in-process lawsuits, and undesirable agreement sections, among others.
  2. Financial due diligence: it gives the correct information about the organization’s financial status. The private equity company’s responsibility is to hire accountants and financial auditors to collect the investor’s financial information.
  3. Commercial due diligence seeks to check the company’s trends and marketing position.