VC/PE Holds?VAM And Acquisition Premiums

In recent years,"mergers and acquisitions" has become a hot topic in the securities market.In 2013,the Chinese M & A market ushered in a new stage of development,with the domestic M & A market becoming active and the number and amount of M & A projects reaching a new peak in the context of strong domestic policy promotion and significant improvement in mergers and acquisitions.That year is also known as "the first year of Chinese M & A market." With the development of the past few years,Chinese M & A market has become more standardized and institutionalized.And M & A has become the majority of enterprises to expand the scale of operation and achieve an important way of industrial transformation.In addition,due to IPO stringent,M & A transactions have become an important channel for private equity firms to withdraw from investment projects.M & A transactions tend to produce M & A premiums.Private equity investment institutions have a relatively high return on investment requirements and their presence will have an impact on the acquisition premium.At the same time,VAM is now common in the M & A transactions as a financial tool.How will VAM and VC/PE holds effect the M & A premium,the current academic circles have not given a specific answer to their relationship.Based on the M & A events of SME and GEM in 2011-2016,collect the data of M & A transactions to carry on the empirical test.Firstly,it examines the impact of private equity investment on the M & A premium.Secondly,it studies the impact of specific factors on M & A premiums.Finally,it focuses on the impact of the signing of performance compensation commitments on the relationship between private equity investment and M & A premium.The empirical results show that:(1)the private equity investment holding company will have a higher acquisition premium when it is acquired;(2)the higher the proportion of the private equity investment institutions,the higher the acquisition premium;(3)the more shareholders the lower premium when acquired;(4)the signing of performance compensation commitments has a certain effect on the relationship between private equity holdings and M & A premiums.To be specific,signing VAM can strengthen the relationship of VC/PE shareholding ratio and M & A premium,reduce the relationship of the number of private equity investors and the M & A premium.Finally,put forward some suggestions on the empirical analysis results and the actual situation.It analyzes the impact of private equity holding on the M & A premium,and explores the regulatory role of performance compensation commitment to M & A premium,which not only enriches previous research,but also has some reference for the development of M & A market and private equity investment market.