Investment And Financing On Valuation Adjustment Mechanism Risk Control

Investment and financing is a necessary part of business activities.Investors have no corresponding safeguards for the prospective high returns promised by the financier and the company's IPO.At the same time,the financing side also needs a monitoring mechanism inside,which can encourage the founding team to make continuous efforts to achieve a higher goal.Therefore,there is a need for a valuation adjustment mechanism,which will play a corresponding role in guarantee and incentive for both investment and financing.As a result,Valuation Adjustment Mechanism came into being.The root cause of Valuation Adjustment Mechanism lies in the uncertainty of the future profitability of the company.The purpose is to realize the reasonableness and fairness of the investment transaction as much as possible,and at the same time,it can play a corresponding supervision and incentive role for the financing party to a certain extent.It can not only guarantee the expected benefits of investors,but also play a certain incentive role for the operation of financing parties.However,China does not have a formal legal significance for Valuation Adjustment Mechanism itself,and there is no in-depth study on the strategies and risk control of the investment and financing parties for signing Valuation Adjustment Mechanism.Therefore,from the perspective of the practical application of the capital market,the author studies the relevant legal issues involved in Valuation Adjustment Mechanism and the signing strategy and risk control of Valuation Adjustment Mechanism between the investment and financing parties.The first part discusses the necessity of studying the legal issues related to Valuation Adjustment Mechanism from the status quo of the legislation and legal application of Valuation Adjustment Mechanism in China,and classifies Valuation Adjustment Mechanism from different angles.The second part introduces the legal definition of Valuation Adjustment Mechanism in the academic circle,and gives the author's point of view.At the same time,from the perspective of company law and contract law,taking the more classic cases as an example,it discusses the laws related to Valuation Adjustment Mechanism.problem.The third part starts from the perspective of investors,taking different investment stages and different types of enterprises as examples,and discusses the risk control strategies of investors in signing gambling agreements under different circumstances.In the fourth part,from the perspective of the financing party,the three types of gambling agreements with typical and high application frequency are taken as examples to discuss the risk control strategies of the financing parties to sign Valuation Adjustment Mechanism under different circumstances.