Research On Risk And Response Strategy Of Valuation Adjustment Mechanism In The Financing Process Of Liujing Firm

In our country,the small and medium-sized enterprises are relatively small in size,and the cash flow is not stable,so private equity financing has become an important way of financing for start-up enterprises.The mature private equity investment industry in Europe and America has greatly driven its economic development and has become a model for private equity development in developing countries.After the 2007 market warming,private placement as a group has emerged.In the context of the global financial crisis,China's market after a century of difficult bear market test,more people exclaimed that this is a private placement year.Since then the development of private placement in China,such as surging water,forming a sweeping trend across the country,through the investment style of private placement has cultivated mengniu,Sina,Suntech and a large number of emerging well-known enterprises.In the private equity financing process,the financiers usually overestimate their ability,to gamble the risk to be evasive.Investors tend to make prudent investment decisions relative to financiers.In addition to the existence of asymmetric information,it is difficult or impossible for investors to grasp the overall information of the enterprise,so it will underestimate the value of the enterprise.As the coordination mechanism of different interests orientation between the two parties,the gambling agreement takes the ownership of the enterprise's income and control into account,thus increasing the fairness rationality of the financing agreement.As a valuation adjustment mechanism,the gambling agreement can not only solve the information asymmetry,protect the investors,but also play a certain role in stimulating the financiers.But the effect on gambling is not always positive.Although for the enterprise,can effectively solve the financing problems,ease the financial pressure in the process of enterprise development but to a certain extent,the gambling agreement will make the enterprise has performance on the great pressure,make the enterprise make not long-term decision-making,into trouble.This paper analyzes the motives and risks of the Liujing technology enterprises to sign the gambling agreement,and sums up the suggestions on the risk prevention of the gambling agreement,and hopes to provide some reference for other start-up SMEs.According to the analysis,the financing party faces four risks in the agreement,which are strategic risk,financial risk,control risk and legal risk respectively.Based on the risk analysis of this article,we get the suggestion of risk prevention and control: first,the financing party should be cautious to sign the gambling agreement,secondly,when signing the negotiation,we should rationally determine the standard of gambling and the way of gambling,and then strengthen the strategic cooperation to improve the management ability of the enterprise.