On Private Equity Investment Exit Mechanism And Enterprise Value Evaluation Technology Application

Private-equity investment was originated in the late19th century in the United States. Nowadays, in Europe, the United States and the other developed countries, Private-equity fund has become one of the most important of financial sources for the start-up companies, the financially troubled companies and the public companies, which are looking for the financial funding. The private equity funds in a foreign country is an effective tool of investment and financing, but because the introduction of private-equity in is late, combined with China’s macroeconomic policy and the limitation of our country securities market development degree, private equity funds in our country is still at an early stage of development. As a new way of investment, private equity investment has not only promoted the diversification of the main securities market in our country, but also solved the difficult problems in public funds in the development, Besides that, it has promote the industry operation, raised the level of the effective use of social resources, supported growth enterprise raise funds, promoted the rapid development of our country enterprise, realized the enterprise intensive growth. In one word, the private-equity investment has greatly promoted the economic development of our country.In private equity investment operational process, exit is a very important step. No matter what type of investment is, the ultimate goal is profit. Private equity withdrawal means that the final implementation of interests. If the project cannot be safely and effectively withdrawn, no matter how good the project is, it will not be able to make profits. Different ways of withdraw of private equity investment affects enterprise value and interests. Different enterprise has different suitable exit ways; different conditions have different affected to the investment as well. The private-equity investment is required to evaluate the target enterprise, confirm its value, decide the investment amount, and invest or not, according to the different exit ways of the enterprise. Therefore, the value evaluation of the company in the exit phase is particularly important.According to research results at home and abroad, this paper, introduces private equity investment theory and enterprise value assessment theory, and also analyzes the influence to the enterprise value of the different ways of exits of private equity investment, and different ways to select methods of evaluation for the target enterprise according to different ways of exit. This paper introduces the most suitable value evaluation methods for target enterprise in different exit conditions. Finally this paper listed the items we should notice in the new situation of private equity investment in enterprise value evaluation. This paper is dedicated to provide PE investment actual operators with some scientific and reasonable reference and advice.