The Case Study Of The M&a Model Of The Alliance Between The Private Equity Fund And The Listed Company

Under the background of the new economic normal,China continues to vigorously promote the reform of the supply side and the state-owned enterprises.Through the merger and reorganization to promote the integration of resources flow,the industry layout of emerging industry giant is also accelerating.With the advantage of two-way positive policies,mergers and acquisitions are booming so that the M&A model of the alliance between the private equity fund and the listed company is developing rapidly.As a series of representative cases of Paradise Silicon,the m&a model is gradually changing from the cooperation of both sides by establishing M&A fund at first to the cooperation after the private equity investment institutions has become the listed company’s stockholder in the end.On the one hand,with the aid of private equity investment institutions’ advantages in many ways,listed companies not only can shorten the m&a cycle,reduce the risk of M&A but also generate coordination effect in cultivating target as early as possible.And it’s good for the restructuring the listed company and promoting the performance.On the another hand,with the aid of listed companies’ professionalism in the industrial aspect,the private equity investment institution not only can advance locking exit channel,improve project margin of safety but also can reduce the difficulty of raising,widen the channel of the earnings and build its brand value.However,due to the domestic capital market and the necessary condition is not enough mature and perfect,the model in long-term development is been restricted.For the problems of the model,we also need the dominated power of the market as well as the government assistance to improve.This essay could be divided into five parts.The first part is introduction,including introduction of the background of research,main contents,research methodology and the innovation and shortcomings of this paper.The second part is theoretical basis of this paper,which contains the concept of private equity,literature review of articles both from home and abroad.Then the third part describes the development of the market and the model of private equity.In the following part,this essay analyses a series cases of Silicon Paradise.The fifth part gives some reasonable advice on how to improve the situation for developing healthily private equity.