A Case-based Study On Privat Equity Of Small And Medium-sized Enterprises

Recent years, Foshan, Dongguan, Wenzhou and other regions, have closures phenomenon caused because of lack of funds, corporate finance difficult problem plaguing millions of businesses. The turbulent ups and downs of the economy, the weaker funds for SMEs, is crumbling, unstable capital chain rupture may face at any time. The traditional way of financing, such as bank borrowings, internal financing, has failed to meet the need for rapid expansion of SMEs. Issue corporate bonds, public financing, and other means of financing, the state has set very stringent threshold, the majority of small and medium-sized enterprises is far less than the relevant requirements. With the progressive upgrading of the level of people’s material, the abundance of private capital, the emerging popularity of private financing, Private capitalcan help SMEs weather the storm temporarily, but because of the lack of legal bondage and high financing costs, a considerable number the problem had been exposed, Private capital can not be the long-term solution to save the corporate financing difficulties.With the globalization of the economy, private equity financing is gradually emerging in the field of view of the people, and gradually understanding by SMEs and become one of the financing of small and medium enterprises. Different from banks and other financial institutions, private equity investors focused on the growth potential of enterprises, and at the some time many small and medium enterprises and domestic, although small asset size short history, full of vitality and potential. SMEs thirst for funds, private equity investors in the pursuit of high-potential investment projects, the two sides to find the perfect fit, makes private equity financing effective way to help SMEs out of financing predicament. Private equity financing in shorter development time, enterprises, especially small and medium-sized enterprises understanding of private equity financing is not in place, not comprehensive, private equity financing laws unsound, immature development of relevant intermediaries, leading to many small and medium-sized enterprises to take advantage of certain private equity financing. In this context, how to promote the use of private equity financing in the SME, financiers and investors in the private placement in a win-win is the main purpose of this paper. In this paper, combination in the form of normative research and case studies, first introduced the principle of operation of the private equity financing and processes, analyzing the status quo of China’s SME financing, summed up the advantages and the risks faced by the private use of the SME in J two private equity financing, for example, in-depth analysis of J Company’s private equity financing, financing decisions, and there is a problem, a better theoretical understanding of private equity financing, and start from the problems exposed, thereby combining the conclusions of these analyzes for SMEs in China The private equity financing recommendations and countermeasures.The main contribution of this paper are:(1) The private equity financing and an agreement on gambling binding assay. Private equity financing by listing in the case of an agreement on gambling, gambling agreement will be placed on the private use of the soil on a detailed analysis of the risks of gambling cited.(2) emphasis on corporate investment and financing after investors the importance of management for future investors to help finance enterprise development provides a direction and operational advice.