Evaluation Of The Project Before Private Equity Yuan Profit Company

The private equity industry is developing rapidly in our country. While at the same time, the target companies concerned by the private equity often present great uncertainty in the future market, management, technology and many other aspects,which also greatly increases the risk of investment, so the pre-investment project screening and evaluation is very important for private equity firms. However, many private equity companies’pre-investment project evaluation is still at the stage of experience management now, lacking of scientific and normative principle. On the other hand, the level of integrity of our country is still relatively low, so once concerning the target project’s evaluation, not only should the investment companies make use of scientific methods, but also pay attention to the preparatory work of the project evaluation, which can improve the level of project selection and due diligence work. Therefore, from the view of micro operation, the research of the pre-investment project evaluation is of great significance to private equity investment company.Firstly, through analyzing large amounts of data, this paper presents comprehensive introduction to the concepts, characteristics and basic operation mode of private equity investment. Secondly, this paper reviews and summarizes the achievements and shortcomings of the domestic and foreign scholars achieved on how to select the evaluation index and method. Then, after the analysis of the characteristics of Yuan Ying company and the deficiencies of the current evaluation system, the paper points out that four work aspects need to be done,which are the work of pre-evaluation, the evaluation process, the evaluation index system and evaluation methods. As building the evaluation indicator’s system, the paper points out four key elements, namely risk, management institutions, project characteristics and the macroeconomic environment, which have great influence on the target enterprise’s investment value. The paper have to designs three class comprehensive evaluation index system, which covers42indicators, taking the four key elements as one class index system.secondly,the paper calculates the indicator weight and measures the investment opportunity level of investment project on the basis of expert scoring and using AHP method. At last, it applies the investment evaluation system and verifies the efficiency make use of the example of Yuan Ying investment company investment.I hope this paper can provide a scientific basis and as a consequence, helping reducing the risk of project selection for Yuan Ying investment company, and for other similar investment institutions,it can also provide reference and help in the design of pre-investment project evaluation system.