Risk Identification Of Vam In Private Equity Finiancing And Its Application Control Inquiry In Yongle

Private equity investment has solved the capital needs of many enterprises and made significant contributions to the development of China’s real economy.The term gambling agreement has also begun to appear frequently in the public’s field of vision.In 2006,the case of Yongle Home Appliances being retired from Hong Kong by Gome was caused by an uproar at the time.This was the biggest merger and acquisition case in China’s home appliance retail industry,which caused Yongle to be in trouble and triggered the merger,which led to the fall of the founder Chen Xiao.One of the culprit is the agreement between Chen Xiao and Morgan Stanley.China’s current private equity investment often requires a gambling agreement with the financing company.However,because China’s use of the gambling agreement is relatively late compared to foreign development,entrepreneurs generally lack awareness of the risks involved,and their failure is financing.The huge losses brought by enterprises have made many entrepreneurs regret.This article from the classic case of Yongle Electric and Morgan Stanley’s failure to gamble,through the analysis of the content of the gambling agreement in this case and the possible risk factors,profoundly revealed that Yongle Electric signed the gambling agreement How to cause the final control to fall by the end.By calculating the return on capital of Morgan Stanley hidden in the content of the gambling agreement,it reveals its excessive risk premium for financing institutions.In the risk assessment,using the qualitative assessment method of risk factors,select the target of the gambling agreement,the time of performance,the compensation cost,the protection clause of the control,and the five risk assessment indicators of the investment institutions participating in the gambling agreement,combined with the specific analysis of this case.We see the entrepreneurs own blind optimism,the single and unrealistic financial performance goals required in the gambling agreement,and the lack of corresponding control protection clauses,ignoring the independence of corporate decision-making.Possible risks.At the same time,the issue of valuation before signing the agreement,the negotiation issue in the signing of the agreement,and the implementation of the risk control proposal after the signing of the agreement.It is necessary to consider the long-term development of the company and fully measure whether the risk premium corresponding to the gambling agreement is reasonable.As the first case of the failure of the gambling agreement,this case has a strong reference for entrepreneurs who try to sign a gambling agreement with the investment institution to obtain high valuation investment.Entrepreneurs need to fully realize the existence of the gambling agreement.The risk and the corresponding risk control awareness,so that companies can obtain more long-term development after obtaining financing.SMEs that need to obtain private equity financing have reference significance in the risk prevention awareness they need to have when signing a gambling agreement.