Legal Research On Valution Ajustment Mechanism

VAM is rooted in the Anglo-American capital markets, which is an important financial investment tool in every investment transaction.VAM normally present in the process of private equity financing, the effect of this agreement is to adjust based on uninformed deviation arising from business valuation problem, the purpose is to maintain fairness and impartiality of the contractual parties.With the rapid development of China’s economic construction, and continuously push forward financial reform, Chinese enterprises have to respond to the call of national policy, the beginning of "bringing in" and "going out", VAM began to appear in the field of vision among nationals.However, large numbers of VAM case, does not mean it has been approved the law,In fact, VAM has been the lack of clear statutory provisions, its legal nature and legal effect there are still a lot of controversy, but also to the use of VAM will be full of legal risk in the actual process of private financing. From the perspective of Chinese law, this paper makes an in-depth research on the VAM.From the point of view of practical, dicussed how to avoid the legal risks of VAM, andplay its benefits, both to achieve the investment and financing of their own interests but also benefit society,then get the win-win result.First, this paper summarizes the legal perspective Of VAM. From the investment practice point, this part simply describes the meaning and main manifestation of VAM, discusses the root causes of VAM,which provide a research framework for the following legal analysis.Secondly, in the third part of the paper, with a case study analysis of VAM.Complete exposition of the current agreement on VAM in China under the legal framework of the entire operation.Thirdly,in the fourth part of the paper, there is the center of the chapter.In this paper, the method of writing case studies and theoretical analysis to analyze the perspective of VAM on China law.From the practical point of view,discused the operational modalities and space on VAM,and proposed the corresponding risk prevention recommendations.