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Mark Hauser Highlights What To Consider Before Acquiring a Business

Mark Hauser is the co-managing partner at Hauser Private Equity, one of the world’s leading private equity firms. Since 2008, they’ve been investing in and building businesses in various industries. In this article, Mr. Hauser highlights the four factors that investors consider before deciding whether to acquire a business. With such a large amount of criteria to consider, entrepreneurs need to take note so that they are not overlooked by private equity firms when seeking capital for their ventures.

  1. Multiple avenues for growth

This is the most important factor for an investor; as Mark Hauser Hauser explains, a business can have one large vision, but if it is not well positioned for expansion, then growth will be limited. Multiple avenues for growth include the ability to expand within a single market at the expense of others and being able to branch out into other unexplored markets.

  1. Well-executed business plan

Investors need to look at a business’s investment plans and evaluate if the plans are well thought-out. This means examining the current state of a business and how it will be financially sustainable in the long term. It also means a thorough explanation of how the business will scale up and be profitable over time.

Look at the business’s short-term and long-term goals. Evaluate if its present and planned operations are realistic, as well as its development of new ideas.

  1. Strong Market Position with Competitive Advantages

Look at the company’s market and see if the business is the sole provider of a particular product or service. If so, they will likely have a strong advantage over their competitors. This will help to ensure it can retain its market share and grow in size over time.

  1. Management Experience

Investors must investigate a company’s management team before purchasing it and make sure that it has what it takes to scale up a new business and be effective at increasing sales and managing costs.

Conclusion

When considering whether it is time to invest in a business, thoroughly research the business and its management team. As Mark Hauser puts it, investing in a business that has the potential to be a success is much more rewarding than spending time on a business with no long-term potential.