Research On Feasibility Analysis Of Private Equity Investment Project Establishment

According to the report of private equity industry development in August,2017 from the Simuhui APP of China Galaxy Securities Co.,LTD fund research center,it showed until August 31,2017,the Chinese actual private equity fund management scale exceeded 10 trillion yuan,reached 10 trillion and 210 billion yuan,the fund industry association registered 20,652 private equity fund managers,has registered 71,030 private equity fund,and 310,121 people engaged in private equity fund[1].It can be seen that Chinese private equity fund has entered into a vigorous development trend,and the growth rate is so fast.This will probably become another trend of China's wealth growth after the real estate industry.The private equity investment is divided into four parts,fund raising,investing,managing and withdrawing[2].The investment process of the project includes 10stages:looking for projects,project feasibility analysis,project approval,signing commerce confidentiality letter,due diligence,business negotiation,investment committee' decision,signing investment agreement,paying and business registration change[3].However,in the face of such a new business about private equity investment,this paper is about to study how to scientifically and strictly carry out the feasibility analysis of the project,and analyze from what sides of investigation factors for the the private equity investment project approvals before the investors initiating the project.So,the study in this article is the problem of the feasibility analysis of project approvals in the private equity investment process.This paper is based on the analysis of private equity investment project feasibility study,then further discusses study elements of project feasibility analysis of private equity investment project,and shares writer's an actual case of private equity investment company-YJ company investment case for empirical research,to explain the feasibility analysis of private equity investment project,in order to provide investment decision-making reference for the follow-up work.This study can draw some conclusions as follows:(1)the feasibility analysis of private equity investment project should start from the following three parts:industry analysis,strategic operation analysis and financial indicators analysis.The industry analysis of private equity investment project should be carried out in five aspects:national industry policy,industry ceiling(market capacity)and growth driving force,industry valuation,industry chain analysis and industry competition.The strategic operation analysis should be carried out in six aspects:feasibility of IPO,management team,business mode,operation pattern,core competitiveness and ownership structure.The financial analysis of private equity investment project should be carried out in four aspects:profitability ability,debt paying ability,operation ability and growth ability.The project can be approved if they are feasible for the three points,industry analysis,strategic operation analysis and financial indicators analysis.This paper belongs to a kind of application articles,its creative significance is to provide a scientific and rigorous feasibility analysis method for private equity investors in the feasibility analysis of investment project,and provides a certain reference value.