Private Equity Participation In China's Overseas M & A Legal Issues

Face to the global financial crisis,bring the pain and opportunity to the world economic development, a wave of overseas M&A chinese companies set off, has gradually been subsided by rationality, but the role and function of PE has been impacted on our financial structure and legal construction and evoke our deep thinking. Is PE participate in China's Overseas M&A the ideal short-lived or reality? Author has tried to find answers from the theoretical and practical perspective. At least, the reality is that Chinese enterprises in overseas M&A issue has been pressing issue needs to chinese and international PE。This article is composed of three parts including the foreword,the body and the conclusion.The foreword part gives a brief introduction of the thesis'topic background. gives a brief description of a new era in the context of China's Overseas M&A problems. Then, summarize and analyze the current situation of the current domestic and international PE.Body part is divided into three chapters. The first chapter,the basic theory of PE participate in China's Overseas M&A, is divided into three parts. The first part of the concept of PE and PE compared with the related concepts. The second part describes the basic features of PE. The third part of the author from the principal-agent theory and the law and economics perspective of the PE in the Overseas Chinese theory. First, from the agency relationship perspective of PE participate in China's Overseas M & A,get out incentive and restraint mechanisms forward to resolve adverse selection and moral hazard problems, then from the perspective of law and economics, demonstrate the need of PE participate in China's Overseas M&A.The second chapter is divided into three parts.about the status of China's Overseas M&A First, list our current existing legal system to the relevant provisions of PE-related issues, secondly, demonstrate the development of PE in our current situation; Finally, Lenovo's purchase of IBM leveraging PE actual case to explain the status of PE participate in China's Overseas M&A.then In practice, Chinese enterprises face many difficulties in the process of "going out" overseas mergers and acquisitions, combined with multi-functional role of financial of PE witch can effectively resolve these problems,from a practical point argument the Necessity in PE participate in China's Overseas M&AThe third chapter,with the advanced experience of foreign countries about PE,elaborate abroad experiences and its perfection for PE participate in China's Overseas M&A. Face the problems,there are five suggestions: improve PE in the legal status of overseas mergers and acquisitions; expande the PE investors; perfect PE participation in China's Overseas M&A limited partnership form; prominent in overseas mergers and acquisitions regulatory and industry self-regulation; restricte abroad PE participate in China's overseas M & A, prevent the risks.The conclusion part highlights the significance and accomplishment of the thesis.