Research On Pre-IPO Project Pricing Of Private Equity Market In China

Private equity investment refers to the behavior of private equity funds investing in their equity before a company goes public.At this time,the pricing of the invested company will play a more important role.Compared with most other countries,China's research on the principle of private placement pricing before listing is very rare,and there is no in-depth research and analysis on the reasons for the difference between the price of private placement before listing and the price after listing.In addition,in the market,the existing pre-market private equity industry default pricing method indicators also lack standard judgment.This paper takes the pricing of Pre-IPO project in China's private equity investment market as the research direction.Based on the previous research,it sorts out the organizational form,operation mode and development characteristics of the private equity investment.Then,the common valuation methods of enterprise value in the Pre-IPO stage are compared and analyzed.On this basis,the article discusses the valuation factors in China's private equity investment,constructs an empirical model with three factors,and calculates the impact of three factors on the valuation of Pre-IPO enterprises through regression;Select W company as a specific case to conduct empirical research and verification.Through research,the main conclusions of this paper are:In practice investment,there are many factors affecting the valuation of China's private equity investment,including quantitative indicators,such as financial data,which are easy to obtain and easy to quantify.With the development of the market,there are more and more factors and indicators to be considered in the valuation,and the importance of the experience and judgment of investment managers and decision makers in the industry is increasing in practice.The qualitative indicators of high subjective personal color have an increasing influence on valuation.This paper selects the three indicators of the industry's development prospects and enterprise competitiveness,current valuation and secondary market price difference,and net profit growth in the next three years,and empirically analyzes its valuation in private equity investment.The impact and sorting.The analysis results show that for the current evaluation criteria of private equity fund institutional investors' investment in pre-IPO companies,the first consideration will be the net profit growth of the company in the next three years,followed by the development prospects of the segmented industry.Competitive with the company,and finally the current valuation and secondary market price difference space.