A Study On The Practice Of Local M&A Funds In China

M&A funds are the main way for private equity funds to participate in mergers and acquisitions.Mergers and acquisitions of funds are of great significance to optimizing corporate governance structure,improving corporate management performance,promoting sound development of the industrial chain,and optimizing industrial structure.At present,China's M&A funds are showing a booming trend.Research on M&A funds has become a hot topic in the domestic capital market.Although China's M&A fund has achieved certain results,local M&A funds still face many difficulties in their development.Based on this,study the operation mode of the typical local M&A fund,analyze its operating characteristics,explore the advantages and disadvantages of the local M&A fund operation,summarize the main experience of operating the domestic M&A fund,and have significant theoretical significance and practice for the development and expansion of the local M&A fund significance.Firstly,this paper analyzes the background of the study and clarifies the significance of the study,analyzes the course of the development of M&A funds,studies the development status of M&A funds in China.And then this paper analyzes the research of M&A funds by domestic scholars and foreign scholars through literature review methods.On this basis,this paper proposes the main content and framework of this study.Secondly,this paper analyzes the principle of M&A funds from three aspects: optimal capital structure theory,value underestimation theory,and synergy effects theory.Then,this paper compares the difference between the financing model of leveraged buyouts in China and that of foreign leveraged buyouts.On this basis,this paper studies the main content of the structural design of M&A transactions.Thirdly,this paper uses Hony Capital as a case to analyze the operation process of M&A funds,analyzes the fund-raising channels of M&A funds,studies the investment strategies of private equity funds,mezzanine funds and real estate funds subordinate to Hony Capital,analyzes the profit model and exit method of M&A funds,analyzes the problems in the operation of M&A funds in China.Finally,this article analyzes the merger and acquisition cases of Hony Investment's subordinate real estate funds,analyzes the leveraged financing arrangement and transaction structure design of the transaction.This paper presents the inspiration of this case for the development of M&A funds.Through theoretical research combined with case studies,this paper explores the advantages and disadvantages of domestic M&A funds,sums up the experience of operating domestic M&A funds,and has strong practical significance for the leverage financing and transaction structure design of M&A funds in leveraged buyouts.