Research On The Valuation Of Pre-IPO Companies In Private Fund Investment

Following the pace of continuous reforms in the financial sector in China,and through the buoyancy of economic growth,private equity investment funds are playing an increasingly important role in the financial markets.Many of these investment funds have targeted their potential.In the high-profit-making space for listed companies,of course,the high returns on investment must be accompanied by high risks.Therefore,the ability to accurately and effectively value the companies to be listed naturally plays an important role in the success of private equity investment.However,although the size of the private equity fund market has been expanding,but the investment practice has not been in line with China's current national conditions of the relevant investment theory support,in particular,the valuation of the research of the listed companies is not deep.This article is in this context,first read the literature,introduced the current several private equity investment practice commonly used in the valuation methods,and from a variety of perspectives and different perspectives of the different valuation theory of the scope of application and excellent Disadvantages,and then sort out the research status of private equity funds in the valuation of the company to be listed.Afterwards,a case analysis method was used to provide an in-depth explanation of the case of Taihe Capital Investment YunJian Communication Co.,Ltd.Then,using a combination of qualitative and quantitative analysis methods,we started with the introduction of the basic conditions of relevant parties,namely Taihe Capital and YunJian Communication Company,focusing on the analysis of Taihe Capital's valuation of YunJian Communication Company using different valuation methods.The case,on this basis,carries out an overall analysis of the valuation process and conclusions of YunJian Communication and puts forward some personal suggestions for improving the enterprise valuation system.Judging from the valuation results of the case,it is unreasonable for private equity investment institutions to consider only using financial data indicators for quantitative analysis in valuation,and it is also necessary to quantify the target company's data with accurate data from multiple levels.However,it also plays a decisive role in the success of the investment,such as the company ' s talent introduction,core technical advantages,service quality and customer evaluation,market development capabilities,tax incentives,corporate customer concentration,and accounts receivable balance.Qualitative analysis of financial risks and other aspects,combined with the company's macro conditions,industry background,and competitive position,etc.,make judgments and considerations on other investment-related factors,and fully consider the advantages and risks that target companies currently face.In general,this article uses the case of Taihe Capital's investment in cloud computing to explain that the results of quantitative analysis and qualitative analysis must be comprehensively considered in the valuation of the company to be listed,and the resulting valuation price will be more reasonable.This will provide a better reference for the valuation research of private equity investment in the listed companies.