Too Long; Didn't Read
A leveraged buyout refers to the utilization of leverage (or borrowed funds) to execute a purchase. Private equity firms are singularly focused on earning a return on each investment. Mark Hauser, co-managing partner of Hauser Private Equity, highlights what evaluation criteria investors look for. The private equity firm’s due diligence encompasses three key areas of the target company. After the deal is finalized, the acquired business joins the private equity investor (the GP) in the process. The GP's involvement typically corresponds to their general stake in the acquired company.