Research On Private Equity Financing Of Shihua Company

In recent years,China's small and medium-sized enterprises play an important role in the rapid development of economic globalization,and become an important part of our national economy.But,for small and medium-sized enterprises,especially private and medium-sized enterprises,traditional creditor financing,such as through banks,does not have a competitive advantage and direct capital market financing is more restricted;,it's role in social development is not commensurate with the financial resources they receive.In view of the difficulty of financing for small and medium-sized enterprises and the high cost of financing,the 19 major reports of our country put forward to further optimize the financing structure,put the development of direct financing in an important position,increase the proportion of direct financing,vigorously develop equity financing,enhance the real economic function of capital market services.It is worth studying how to promote the development of private equity financing in small and medium-sized enterprises and solve the financing problem of small and medium-sized enterprises.Private equity investment originated in the United States,in recent years in China's localization process has made rapid progress.Over the past decade,the new partnership law,the launch of the entrepreneurial board and the new three-board expansion measures have provided a good policy environment for the development of private equity.With the increasing maturity of domestic capital market and the fall and improvement of industrial regulatory policies,the China market has entered a new era of equity investment.SH Company is a private enterprise that grew up under this background.The company has experienced the difficult period and developed rapidly,but the original fixed assets and working capital can not meet the demand of the order.SH company,as a family-type enterprise,has some problems such as lack of scientific management idea,unreasonable organization,unmatching team building,lack of strategic planning,.it is difficult to introduce private equity financing,but the reasonable introduction of private equity investment is helpful to solve the capital problem,optimize the corporate governance structure and promote the core competitiveness of the company.This paper makes a case study on the private equity financing of SH company,and uses comparative analysis to study the private equity financing path selection of SH company.Using SWOT analysis to demonstrate the effectiveness of private equity financing;At the same time,this paper analyzes the problems and causes in the process of private equity financing,so as to improve the effect of private equity financing with reasonable countermeasures,so as to guide the practice of private equity financing in small and medium-sized private enterprises.