CEOs have run the show in their companies for decades and acted as the primary decision-makers. With increased power, these leaders focused more on their gains than improving company success. As a result, many companies need clear direction from leadership to succeed. But this is changing thanks to recent changes in the equity market. One of the most significant shifts in the market was when private equity companies started buying entire businesses rather than just individual assets. Business buyers have more power and control in the company than traditional stockholders, so they can make decisions that benefit the company, not just themselves. Mark Hauser believes this kind of power shift is the future of the corporate world.
Companies need to be built around the founder and [the company’s] mission, or they’ll suffer. What you see with private equity right now is that the companies are being built differently, and they’re succeeding much better. They’re not only making their stock price, but their business is growing faster than they were two years ago, and they’re growing faster than the public side of the economy. Mark Hauser is an investor and thought leader on private equity deals and founder-led growth. He has 30 years of experience in private equity investing with an emphasis on providing capital to technology and healthcare companies. He has served on the boards of directors for several privately held companies, including Idealab (now part of GE) and WebMD Health.
While many companies have benefited from private equity deals and increased control by founders, others haven’t. But rather than blame private equity or even CEOs, Mark Hauser says that the fault lies in a lack of vision or talent at the top. That’s why he believes the future is shifting power to founder-led companies. They are built around individuals who can create an image and mission based on their values. These leaders see their roles as critical to [the company’s] success and will not be distracted by their personal goals or wealth.