A Case Study On Mezzanine Financing Of Private High-tech Enterprises

With the further development of knowledge economy and globalization,our country's private high-tech enterprise in the national economy plays an increasingly important role.It is the main channel to provide jobs,is the main platform of entrepreneurial growth,and is an important force in scientific and technological innovation.But,our country private high-tech enterprises financing structure is not reasonable,the financing ability is not strong,influencing the sustainable development of the private high-tech enterprises in our country.Especially many private high-tech enterprises in the arduous pioneering stage of the seed and early-stage,after entering growth stage need spend a lot of capital for market development and mass production,but could not raise a reasonable source,structure and cost of development funds.Either the proportion of equity financing is too high,too much control of dilution ratio,or first bond financing is not enough,difficult to meet the needs of the rapid growth development and expansion.Financing difficult problem now serious interference with private high-tech enterprises thrive,this is the first big problem to prevent such companies keep continue to develop.So,this paper discusses how to overcome the problem of private high-tech enterprises financing is especially important.The late 1970 s,Mezzanine Financing began to be favored in Western countries,following the Basel ?,the financing method developed very rapidly in the development of Europe,which for many companies it has opened up a new financing.Mezzanine Financing as a new financing way,it is between senior debt and equity financing of a form of financing,in the two aspects of risks and benefits are somewhere in between the other two kinds of financing ways,its operation characteristics and the current stage of development of private high-tech enterprises in China is more appropriate.Mezzanine financing in many Western countries has become a common way of financing,and it helped many small and medium enterprises to solve the problem of financing,which is a good idea for our private high-tech enterprises to solve the problem of financing.Currently in China,Mezzanine Financing either from the micro level of its own intrinsic properties of view,or from outside the enterprise level,the macro-financial environment,will become an important part of the financing structure of the high-tech enterprises.In other words,China's high-tech enterprises currently use Mezzanine Financing to raise funds needed for enterprise development is feasible.The problem of financing difficult has become the primary problem of constraining private high-tech enterprise's survival and development,affecting the development and growth of such enterprises.Therefore,the study of how to solve the financing problems of the private high-tech enterprises is crucial.Under the background of this premise,this paper adopts the method of combining theoretical analysis and case analysis to study the analysis of Mezzanine Finance in our country,the feasibility to use private high-tech enterprises.At first,this paper expounds the connotation,applicable conditions,motivation and theoretical basis of Mezzanine Financing in theory.Then introduces Shanxi Guangyu Semiconductor Lighting Co.,Ltd.used Mezzanine Financing cases,mainly introduces the background of Shanxi Guangyu used Mezzanine Financing and the background of Huifa China Fund Management Co.,Ltd.invested Shanxi Guangyu Semiconductor Lighting Co.,Ltd.,as well as a brief introduction to the process of Shanxi Guangyu used Mezzanine Financing.Next is the Case analysis of Shanxi Guangyu used the Mezzanine Financing,analysis mainly from the following four aspects:(1)The analysis of motivation;(2)The analysis of feasibility;(3)The factor analysis of Shanxi Guangyu mezzanine financing project;(4)The analysis of effect.Through the introduction of the case analysis,further evidence that Mezzanine Financing plays an important role in the private high-tech enterprise's growth stage,it is feasible for the private high-tech enterprises to use Mezzanine Financing.Finally put forward some feasible Suggestions on the development of Mezzanine Financing:(1)Build impeccable Mezzanine Financing intermediary service system;(2)Establish an effective Mezzanine Capital exit mechanism;(3)Construct multi-level capital market;(4)Improve a sound system of mezzanine finance law.