Study On The Merger And Acquisition Risks Of Aier Eye Joint Private Equity

In recent years,the number and amount of M&A transactions in China have continuously increased.The data shows that the number of M&A deals in 2017 was 8,423,with a growth rate of more than 60%.The amount of M&A transactions was RMB 4,261.5 billion,and the growth rate was 32.87%.The Chinese M&A transaction market continued to be hot.Accelerating the innovation of mergers and acquisitions,the merger of listed companies and PE institutions has gradually become a rising star in the capital market with its unique advantages.From the perspective of the industry,the large health industry has performed particularly prominently in the joint company PE mergers and acquisitions of listed companies,including love.Many pharmaceutical listed companies such as Ophthalmology are involved in setting up or investing in M&A funds.In recent years,mergers and acquisitions funds have developed rapidly.However,with the listed companies that broke out in recent years to redeem the crisis,the risk identification and control of M&A funds has also become a fact that listed companies have to face.The failure of fund-raising,the impediment to operations,and the redemption of the crisis in mergers and acquisitions funds will cause the failure of M&A fund projects,resulting in the loss of human capital and financial resources of listed companies and even affecting the normal operation of the capital market.The awareness of risk control of listed companies in enhancing merger and acquisition funds not only helps to take full advantage of the professional advantages of private equity firms,but also helps to promote China’s industrial transformation and upgrading,promote industry consolidation,optimize resource allocation,and change the incremental economic expansion so that listed companies can The status in the national economy has steadily increased.In this context,it is of great theoretical and practical significance to study the risk identification and control measures of China’s M&A funds.This article starts with a review of the literature,which explains the operating model and development motives of a listed company’s joint PE-type merger and acquisition fund,and introduces the process of mergers and acquisitions of listed companies using M&A funds:choosing a PE institution,setting the organizational form,and evaluating the target company.Pay equity transfer money and integrate the acquired company.Identify risks for each step,and introduce countermeasures for listed companies.Based on the case analysis of Aier Eye Hospital,based on this,it summarizes the risk identification and response of M&A funds.This provides experience and lessons for other listed companies that use M&A funds for mergers and acquisitions.From the perspective of a listed company,this article explores the risks to the listed company when it uses mergers and acquisitions to conduct mergers and acquisitions,and proposes new ideas on the internal risk control of listed companies from the micro level.First,choose the right one based on the purpose of mergers and acquisitions of listed companies.PE institutions,such as horizontal mergers and acquisitions,consider institutions with high investment professionalism and deep industry background.Second,the listed companies use proper valuation methods to select due acquisition opportunities after conducting due diligence on the acquisition targets and understanding the risks,so as to minimize the risk of the listed company’s valuation of the target company.Third,listed companies face the risk of integration after mergers and acquisitions of multiple target companies.The key is management risk and human resource risk.The partner system of Aier Ophthalmology has a good risk control effect and is worth learning and learning from other companies.In this paper,the practice and theoretical research on risk identification and control of China’s M&A funds is still in its infancy.Under the current background,the external supervision of M&A funds is relatively lacking.Therefore,under the perspective of different previous studies,the research on the risk identification and control of M&A funds can effectively compensate for the current domestic research deficiencies.The cases cited in this article and the conclusions drawn will also be worthy of reference for other listed companies in the future.