The Research On Project Of Private Equity Financing Of Hunan Zhengzhong Pharmaceutical Machinery Company

The 18 thNational Congress of the Communist Party of China has put forward the policy of establishing multi-level capital market which matches with the present economy system. Today, the country has formed banking, IPO market, equity financing and other multi-level capital market, for enterprises to solve funding problems have been facilitated. As one of the main forms of modern corporate finance, equity financing is in the form of equity financing of enterprises, especially small and medium enterprises, high-tech corporate finance provides an important channel. SMEs thirst for funds, private equity investors in the high-potential investment projects in pursuit of the two sides to find the perfect combination of points, so that the private equity financing has become an effective way to help out the financing difficulties of small and medium quality. However, due to private equity financing in China's development time is shorter, enterprises, especially SMEs understanding of private equity financing is not in place, not comprehensive, private equity and other relevant laws are not perfect, so that SMEs exposed in obtaining equity financing some problems. The main development in this context, how SMEs according to stage of business development,development needs access to equity financing, and thus play a direct financing function better equity financing, allowing companies and investment institutions for everybody to become this article purposes.In this paper, equity financing program after Hunan median pharmaceutical Machinery Co., Ltd. for the study of the middle of the company's current situation was analyzed, clear corporate financial strength is weak, team philosophy than the lag and other issues, were analyzed by the company's environment that the company's industry has a great future growth potential, and the middle of the company's technology and patents have a strong competitive advantage, product sales also continued to maintain a high growth rate, and the current production capacity increasingly become the company's development bottlenecks, the company now is not enough liquidity to expand production capacity. In order to seize market opportunities and financing market in the future, so to equity financing. In the current situation the company conducted a comprehensive analysis of the basis of the final form of the financing plan,and the risks faced by the Company are analyzed to develop a risk management plan.Through this case study, the following conclusions: the middle of the company'srapid development of downstream industries, the market demand will drive the rapid growth of the middle of the company's products. The median company has a strong technology and product advantages, the industry-leading position, the company huge future potential. Still need to regulate corporate governance, and the shortage of funds,the company's development stage for the introduction of private equity funds, you can quickly improve the company's financial strength and management standardization.Financing process, the need to do technology leakage, a single product, management is not standardized, risk prevention work, but also need to make personnel, systems,institutions, agreements and legal protection.