In Vitro Incubation Risk And Control Of M&A Funds

According to Wind's statistics,the size of China's M&A funds in 2017 has increased significantly compared with last year.A total of 135 M&A funds have been issued throughout the year,with a scale of 177.554 billion yuan,especially the number of funds established in May and June,which is looming..From the current market situation,the establishment of M&A funds by listed companies has become the trend of the times.The capital market has created a batch of professional private equity investment management institutions to compensate for the shortcomings of listed companies in the operation of M&A funds.These institutions will be linked with listed companies and their affiliates to form a community of M&A fund interests,and “tailor-made” to the M&A fund operating model based on the business characteristics of key stakeholders to help listed companies and their affiliates achieve the industry.Upstream and downstream industry chain integration.Among them,the most widely used is the "listed company + PE side" model,which is becoming a new star in the capital market with its unique advantages,and is favored by the medical industry,in addition to the Aier Ophthalmology studied in this paper,Lepu Medical,Runda Medical,Xinhua Medical and other well-known medical listed companies also have M&A funds.China's M&A funds have developed rapidly in recent years,but their rapid growth in the number of establishments and the scale of fundraising are not good news for many “M&A funds successfully exited”.In fact,a large part of M&A funds have fallen into a redemption crisis.It has become a "zombie fund" with no movement.According to statistics,there are no substantial investment progress in the establishment of nearly 62% of the funds in China.M&A funds have a long duration,generally ranging from five to ten years.There are many participants in various processes,and the interests involved are complicated.Any process that is blocked by operations will cause the M&A funds to fail and cause human and financial losses to all parties involved in the listed company.This fact also makes the risk and control of the M&A fund attract the attention of the listed company and enter the vision of all parties.From the academic and theoretical experience of the academic community,in order to ensure the successful exit of the M&A fund,it is necessary to take measures and take actions against the risk of the M&A fund,and to ensure the stable operation of the M&A fund,so as to promote the successful transformation and upgrading of the industry and realize the listed company.The status of the national economy has steadily increased.In this context,studying the risks and control of M&A funds is of great practical significance to both the theoretical and practical circles.This paper begins with a review of relevant literature,explores the reasons for the establishment of the M&A fund,the mode of operation,the relationship between the parties,etc.,and strives to clarify the risks and control methods in the various processes of the M&A fund.Secondly,it briefly introduces the basic situation of Aier Ophthalmology,and reviews the establishment of M&A funds several times in Aier Ophthalmology from the three stages of establishment and recruitment,investment and integration,and successful exit,in order to truly restore the full set of M&A funds.process.Thirdly,it analyzes the risks and control methods in the establishment,operation and exit stages of M&A funds from the perspective of the whole and the process,and analyzes the main risks and control methods of M&A funds.Among them,the overall level is mainly based on the big pattern,based on the principal-agent theory,to explore the principal-agent problem of the various stakeholders of the M&A fund;the process level is based on the overall operation process of the M&A fund,and it is divided into mergers and acquisitions according to the operation order.The fund is set up in three stages before,during and after the operation(ie,the exit phase),and detailed analysis is carried out in stages.Finally,and then contact the actual situation,evaluate the risk control measures of the M&A fund under the name of Aier Ophthalmology,summarize its merits,explore its shortcomings,and propose suggestions for improvement.The analysis of this paper is mainly based on the various literatures in the academic world,the annual report of the listed company and various documents related to the M&A fund,combined with the characteristics of the medical industry and the characteristics of the “listed company + PE” M&A fund model.A comprehensive analysis of the risks and control measures of M&A funds.At the same time,the relevant "listed company + PE party" typical case analysis and summary,learn from each other to explore the advantages and disadvantages of Aier Ophthalmology M&A funds in risk control.Finally,it puts forward suggestions and suggestions from both the overall and the process level,in order to have some inspiration for the operation of the future M&A funds of Aier Ophthalmology and other listed companies.This paper is not in the early stage of the research on the risk and control of M&A funds in the “listed company + PE” model of China's medical industry.Moreover,in the current context,the external supervision system of China's M&A funds is still in an imperfect state,and there is no effective response.Therefore,from the perspective of different previous studies,this paper can make up for the shortcomings of current domestic research to the extent of the risk analysis and control of M&A funds.