The Influence Of Private Equity Fund Participation On The Performance Of Chinese Enterprises' Cross-border Mergers And Acquisitions

In today's world,economic globalization is accelerating.Various countries are actively seeking new ways to develop their economies.The rapid rise and development of private equity investment in emerging markets has attracted widespread attention from the international community.As an important financing method,private equity investment arises after bank loans and IPOs.Its emergence has greatly promoted the development of emerging SMEs.Last year,with the advent of national policy support and the emerging investment boom,the private equity investment market in China has grown rapidly,and private equity participation in domestic and overseas M&A markets has also shown rapid development.The study of the impact of private equity participation in cross-border mergers and acquisitions on corporate performance is based on this background.First,on the basis of literature review and theoretical analysis,this paper collected 238 samples of Chinese companies participating in cross-border mergers and acquisitions from 2010 to 2015 to analyze M&A performance,of which private equity participated in M&A sample 73,private equity did not participate in M&A sample 165.The research results show that private equity participation in cross-border mergers and acquisitions has improved the business performance of the company.Then,we selected an instance of Zoomlion CIFA merger and acquisition to analyze its M&A motives,M&A phase,and changes in financial performance before and after M&A.Although Zoomlion's P/E ratio is lower than that of companies in the same industry,Zoomlion successfully completed the CIFA for Italy after analyzing the financial crisis and the continuing downturn in the Chinese stock market after analyzing various financial indicators and long-term profitability.Mergers and acquisitions.This merger involves the participation of three investors from Hony,Goldman Sachs,and Mandarin.They have the support of the PE background.They also have close contact with financial institutions.This not only supplies a wealth of funds for Zoomlion,but also for them.Making various financing decisions,handling international mergers and acquisitions transactions,and business integration have contributed to a wealth of opinions and suggestions.Finally,the closing part provides relevant guidance for private equity institutional investors and policy makers.For private equity institutional investors,it is necessary to focus on their own professional capabilities,make reasonable innovations within the scope of laws and regulations,and to guard against merger and acquisition failure risks while earning revenue.For policy makers,it is necessary to adopt a series of preferential measures to reduce the access threshold for private equity investment.At the same time,it is necessary to improve and perfect the legislation and gradually standardize the development of the private equity investment industry.