Study On Fund Risk Control In China Based On The Process Of Mergers And Acquisitions

At present, China’s m&a market has become the world’s second largest market after the United States’, this also for the development of mergers and acquisitions fund provides a broad prospect. At the same time, the government also have issued policies that support and promote the development of the buy-out funds. Although the buy-out fund in our country is booming, but also carrying the risks cannot be ignored, so it must necessarily make the risk control. Strengthening risk control ability on buy-out fund,can significantly enhance the management level of funds and investment ability, improve the efficiency and effectiveness of their investment, to promote China’s economic structural adjustment, to promote state-owned enterprise restructuring and consolidation, to gather social idle funds, to promote the benign development of the capital market played an important role, deepen the important position in national economy. Under this background, the exploration and research risk control mechanism of buy-out fund in our country, has important and urgent practical significance.This paper reviews the mergers and acquisitions funds and risk tcontrol of the literature in China and abroad, to provide theoretical basis for study of this article and literature support. Second, briefly carding operation process and development process of mergers and acquisitions fund in our country, based on the process of risk identification and control to lay the foundation. Again, combining with the development of m&a in our country fund and the main problems, based on the operation process, it can be divided into setting up stage, financing, investment, investment management and exit phase, after the identification, the risk of mergers and acquisitions fund in our country to draw lessons from mergers and acquisitions fund in our country, namely Zhongxin buyout funds and Tiantang yuanjin fund’s risk control measures, put forward the risk control framework of buy-out fund in our country, risk control mechanism of m&a in our country fund specific design.In this paper, in order to reduce the risk while maintaining efficiency, internal risk control framework is proposed. The framework emphasizes buy-out funds internal risk control and external regulation, the combination of internal and external risk control mechanism to reduce risk to improve the efficiency. Internal risk control is divided into two levels, the first level is to establish a reasonable organizational governance structure, the second level is to design control process. Organizational governance structure design can’t simply use the traditional limited partnership or a company, need to be optimized and perfected on the basis of this. Specifically, mergers and acquisitions in China fund can be used "organization form a limited partnership, half company governance structure "of the company. Operation process level in offering, designed, tubes, on the basis of comprehensive analysis, select effective activities in the operation process control point, risk prevention measures, aimed at different stages of business activities, reduce the financial risk of the buy-out funds, business operational risk, etc. In the internal risk control mechanism in the design of mergers and acquisitions fund at the same time, should strive to build instead of related laws and regulations system, industry self-discipline system and so on, thought and efficient operation of the health of our buy-out fund regulatory environment provide a good external development, reduce the operating risk of the buy-out fund in our country.Based on mergers and acquisitions fund risk management practice and theory research in China in the early stages, at the same time, external supervision is relatively lack of background, from the perspective of the whole operational process identification and design based on mergers and acquisitions fund risk control mechanism, to form a useful supplement, the current domestic research of mergers and acquisitions fund risk management practices and government policies regulating the behavior of mergers and acquisitions fund risk management are proposed.