Research On Investment Risk Prevention Of Private Equity Fund On Overseas M&A

In recent years,private equity fund,which has continuous development and innovative investment model,plays a part in the capital market activities.In the continuous growth of Chinese enterprises overseas mergers and acquisitions,private equity fund,with its broad access to information,professional investment,asset management talents and other advantages,plays a great part in the activities of overseas mergers and acquisitions.However,when the number of private equity funds has a substantial increase,a large number of private equity institutions invest in overseas M&A and play great parts in overseas mergers and acquisitions,private equity investment institutions also face the investment risk of overseas mergers and acquisitions simultaneously.Therefore,the research of how to prevent the risk of private equity funds in overseas M&A,has important fundamentality to improve private equity funds overseas M&A in a wholesome way on two aspects of theory and practiceThe full text of the paper starts with the question,and then analyses and solves it.The paper flexibly uses basic theory of finance,banking,management,etc and use inductive method to analyses private equity funds overseas mergers and acquisitions investment risk prevention together with case analysis method from the perspective of qualitative analysis.First of all,this paper introduces the related concepts,including mergers and acquisitions,overseas M&As,private equity funds and related theories.Then,based on the detailed analysis of the type of PE investment risk in overseas M&As,the paper discusses private equity fund investment risk prevention problems on overseas mergers and acquisitions in depth and analyzes its origin.Next,taking the M&A of CITIC Private Equity Funds Management Co.,Ltd and Biosensors International Group,Ltd.as the example,the paper analyzes its risk prevention measures in investment strategy,industry selection,payment and exit as well as its lack in the aspects of cost,debt,culture and risk management.Finally,in a comprehensive analysis of private equity fund investment risk prevention problems,causes,the case of CITIC Private Equity Funds Management Co.,Ltd and Biosensors International Group based on overseas mergers and acquisitions,this paper proposes private equity fund overseas M&As investment risk prevention measures in decision-making,implementation,integration and exit.The paper expects through the use of relevant overseas mergers and acquisitions investment risk prevention measures to reduce private equity fund M&As investment risks in overseas,increase the success probability of private equity funds overseas mergers and acquisitions,reduce the losses of private equity funds and other related business,regulate the equity market and overseas mergers and acquisitions market and develop the capital market in benign way.