Research On Legal Problems Of Valuation Adjustment Mechanism In China’s Private Equity Investment

In private equity(Private Equity: PE) in the field of investment institutions to ensure their investment value for money, often choose to adjust the terms of the agreed valuation(Valuation Adjustment Mechanism: VAM), which entered the country after the PE of VAM has been translated into gambling agreement. Agreement on gambling is actually financing the estimated value of the two sides on the future of enterprise restructuring, additional conditions for the capital increase agreement, unanimously approved by both parties and the development of performance targets and other conditions acceptable to both sides to achieve a win-win.This paper is divided into four parts. Separately from the agreement on gambling content, applications start by its legal analysis and then discuss the issue of legalization in our country, as well as the choice of the way gambling agreement liability in case of breach of contract. Multi-angle start, the typical case of an agreement on gambling- "China PE gamble first case" in-depth interpretation, in order to be able to bet on the development of protocols to provide research value. This paper introduces an agreement on gambling typical case in practical application, summarized the focus of controversy in the case, in order to study an agreement on gambling legal issues; and then explore the essence of the focus of controversy surrounding the gambling agreement, determine the concept of an agreement on gambling and legal characteristics introduced an agreement on gambling in foreign and domestic concrete application, combined with case concluded: agreement on gambling is financing both sides to achieve a win-win mechanism. Secondly, an agreement on gambling were legal analysis, from the subject agreement on gambling law, legal object, legal content that is legal relationship; comparative analysis of its legal nature, come to an agreement on gambling can not be attributed to both aleatory contract, nor is it a traditional the guarantee contract, but not attached to the conditions of the contract, but a new form of contract conclusion. Finally, this paper discusses the legality of gambling agreement in our country and the way responsibility for breach of contract when studied, with case concluded: bet against the former shareholders of the target company by shares bear a responsibility to the investment proportion.