Research On The Private Equity's Application In Small And Medium Sized High-tech Enterprises

This paper first studies the concept of Private Equity. In private equity investment, high profit goes along with high risk. How to enhance the accuracy for project selection and lower the risk at the same time becomes a very important question.To some extend,the selection of project determines the success of private equity investment. So the study of private equity investment project deserves more and more attention. Then the thesis pay attention to the concept of SMEs (Small and Medium sized company) and High-tech enterprise. Being the important part of Chinese economics situation, the financing demand is very significant for the development of the high-tech SMEs. The operation situation, the pessession of assets, the management structure and so on, caused the high-tech SMEs would be hard to get the loan from the bank of business or some other kinds of economic institution. And , it does not enough to get the fund for the accumulation in the company. So, the development of Private Equity will be an very important push power for the high-tech SMEs. Furthermore, the capital market for this kinds of company is developing quickly, Big expansion of the small and medium enterprise board and the introduction of GEM, means the birth of new financing opportunities. Therefore, it is important to broaden the financing channels and circumvent the risks.The investor and financing enterprises can achieve win-win situation.The main contents of this article are as follow: the first part introduces the background and the meanings of the subject, the domestic and overseas literature review, the research scope, the research method and the innovation of the thesis. The second part focuses on the fundamental theory of private equity. Firstly, the thesis defines the concepts and the natures of private equity. It clarifies the subject from private fund and public fund, private equity and venture capital, the thesis ascertained the chief characteristics of private equity. Finally, the thesis introduces the practical value of developing private equity in China.The third part focuses on the necessity, feasibility and motive analysis of financing situation in high-tech small and medium sized enterprises. Firstly, the thesis analyzes the financing constucture. Secondly, the thesis analyzes the hard situation to get enough capital for these new companies,and anayzes the reasons that why it's hard for them. So, we get the private equity's practical value for development of high-tech small and medium sized companies(high-tech SMEs) in China. The fourth part is the nucleus of this thesis, it focuses on the key points'analysis of the private equity application in high-tech SMEs. Firstly, the financing feature of these companies in growing stagements. Secondly, the neccessaries for applicate the private equity. Thirdly, the correct company value evaluation for the transactors make the deal. Fourth, the management of the transcators to the company after the deal, and the ways withdraw from the company。The sixth part focuses on the case analysis. The thesis selects Hiconics Drive Technology Co., Ltd. as the object to introduce the application of private equity investment. On the basis, the thesis analyzes the financial condition of Hiconics Drive Technology Co., Ltd.. The last part of this article look forward the conclusions and outlook.