Research On The Mechanism Of Valuation Adjustment In Private Equity Investment

Private equity investment in the capital market has become more and more important. For the start-up period and the period of development of small and medium-sized enterprises need a lot of money from private equity investors. With the vigorous development of the domestic private equity market, the valuation adjustment mechanism has also been widely used in practice. In 2012 the Supreme People’s court for retrial "Admiralty investment case" will discuss the valuation adjustment mechanism to a climax.In this paper, we first introduce the case "Fuhai investment projects in the development process, removal of the case and valuation adjustment mechanism related to the content, and thus leads to the discussion of the valuation adjustment mechanism of private equity.In the second part. Firstly, the author introduces the private equity investment overview, types, characteristics, and further expounds the basic content of private equity investment in the valuation adjustment mechanism, from the perspective of the concept, and then analyzes the valuation adjustment mechanism, a variety of ways. At the same time, analysis the value and significance of the existence of valuation adjustment mechanism.In the third part, the author discusses the effect of practice in the valuation adjustment mechanism identified problems, put forward three questions, as a clue,analysis of valuation adjustment mechanism is "puttable clause", whether to belong to the distribution of profits, and then concentrate on the valuation adjustment mechanism whether the damage to the interests of the creditors,mainly from the capital system and bankruptcy liquidation in the protection of the interests of creditors points to analysis.In the fourth part, the author attempts to analyze the legal boundary of the valuation adjustment mechanism under the current legal framework. Throughfrom the two perspectives of company law and contract law, in-depth understanding of the valuation adjustment mechanism under current law legal boundary, hoping to practice in valuation adjustment mechanism is to provide certain reference, so as to get a better valuation adjustment mechanism for space,so as to promote the economic prosperity and development of the market economy.In the fifth part, the author tries to explore the direction of improving the valuation adjustment mechanism, draw lessons from the foreign experience,suggested by setting the preference shares, the special protection of investment contracts and the valuation adjustment mechanism to guard against risk. I believe that with the further deepening of the reform of the economic market, valuation adjustment mechanism will play an increasingly important role in the field of investment and financing.