Study On Market Factor To Private Equity Funds M&A-exit

M&A-exit and IPO-exit are the main exit models of private equity funds in foreign markets. Domestic markets have been more popular the IPO-exit model. But the IPO environment at home and abroad continued to deteriorate recently, as a result of the A-share IPO reform and the U.S. China stocks crisis. So, M&A-exits become another important choice of private equity funds to exit. This article aims to study the market environment factors of private equity funds’M&A-exits, build the evaluation system and analyze the level of influence of each factor. On this basis, barriers to M&A market environments would be analyzed. At last, this article puts forward a comprehensive set of suggestions, as a theoretical reference for China private equity funds’ M&A-exit.Firstly, this paper analyzes the evolution of China private equity funds’exit mode and the current situation, directly reflecting the structure and level of the fund exits. Secondly, this paper builds a set of evaluation index system for market factors of M&A-exit with the Factor Analysis Method. Thirdly, the method of Grey Correlation Analysis is used to test and verify the evaluation system based on sample data between2008to2012,prioritizing of the sequence of factors by related degree. Then, the paper analyzes obstacles to market factors of M&A-exit based on empirical results. At last, a set of scientific and reasonable suggestions are raised.The innovation of this paper is that it focuses on the field of private equity funds’ M&A-exit, which is a pioneering significance. Then, this paper takes a combination of qualitative and quantitative research method during the study process, So that the study on the market factors to private equity funds is more objective and more scientific. At last, this paper creatively uses of the method of Grey Correlation Analysis for an empirical analysis, which is an effective solution to the problem of private equity funds’inaccurate statistics, pointing out the direction of quantitative analysis for this field.