Case Analysis About The Private Equity Funds Exit Of Merger And Acquisition

In the operation of private equity, which normally include three stages: finance, invest and exit. And in the whole operation, exit is the last stage but also the most important one. Now the commonly used exit route of private equity are IPO, M&A, Buy-back and Write-off etc. However, the proportion of each exit route of private equity in our country now isn't in the balance,IPO's part is too high while M&A and other ways have only a small part. And our county now is eager to encourage and support M&A by laws and policies. Besides, IPO has too many restrictions while M&A doesn't. Therefore, more and more investors of private equity are realizing that M&A is an important exit route.This paper firstly collecting some relevant data to indicate the developing situation of private equity fund in our country and point out the current problem of the private equity fund in our country, that is the exit routes now are too narrow, especially during the IPO lockout, the private equity managers all tend to choose the M&A to exit. Secondly, following by the typical case analysis of the M&A to explain the advantages of the M&A, on the purpose of letting more private equity investors and managers to realize the feasibility of the M&A. Lastly, this paper summarizes the revelations of this case to provide some experience and lessons for the people who will choose the M&A exit, then puts forward some suggestions for China's private equity funds to exit, hoping to solve the current problem of private equity fund, which is the narrow exit routes. Based on the analysis of the before, we get an important conclusion, that is to exit of M&A could also be the important way for China's private equity funds, even in the future.