Research Of Private Equity Investment On The B Company's Project Evaluation Of PE In Pharmaceutical Industry

In recent years, it becomes a focal problem that how to organically combine thedomestic surplus funds with the desire of a large number of SMEs to the funds. Thisproblem gradually increases as the issue of adjustment of industrial structure in thenational level; and the key shift factor of achieving the development model in successor failure. In this big background, with the improvement of domestic capital markets,private equity investments has gained rapid development in recent years; and theintroduction of GEM is to stimulate more enthusiasm for equity investors. Thepharmaceutical industry as a key state which is supported by China, private equityfund industry gives more attention for this industry. The B company in thepharmaceutical industry as an example in this paper, it analyses the importantevaluating indicator of the private equity investment in pharmaceutical companies.This paper mainly uses the empirical methods of analysis and synthesis, to establish aframework of investment projects through specific examples happened in the work ofthe pharmaceutical industry. Guiding pricing of the project is reasonable determinedthrough trend analysis and comparison analysis of the appropriate model choice.Firstly, in this paper relevant definition is specified through the systematicexposition of private equity investments; and the characteristics of each stage PEinvestments are introduced.Secondly, it makes conclusions of domestic and foreign private equityinvestment in project price evaluation research aspects, which illustrates the lack ofwidespread research:paying less attention to the practice with too much importanceattached to the theory and no industry pertinence, which shows the necessity of thisstudy. From this to determine the study direction of this paper: To use practicalanalysis of the specific case to show the project evaluation system and method in PEpharmaceutical industry.Thirdly, this paper does basically study on the background of investment projectsbased on the development status and investment status in the pharmaceutical industryand its sub-sectors, which provides the evaluation foundation of the later projects.Finally it combines with the specific examples in the work and carries out anempirical evaluation of the project application. Evaluation indicators and pricingmethod of investment project in the pharmaceutical industry PE is given in the actual case.The study is the additional research that is based on my practical experience ofthe existing PE industry research project evaluation. It is focus on the theory studybasis of the necessary revision and supplement of project evaluation in the practicalapplication. Hoping it would provide some valuable references to the domestic PEprojects evaluation in the future.