Research On The Valuation Of Y Project By X Private Equity Fund

Private equity funds can be a solution to the financing dilemma of SMEs in China.It will improve the capital structure of enterprises,and also will effectively promote the transformation and upgrading of China's current economy.Although the form of private equity investment has been started in China since 2000,it have gradually become one of the most important investment and financing tools in China's capital market.In the four steps of running private equity funds is called "raising,investing,managing,and retreating",the evaluation of the value of a corporate is important.Although there has been formed a relatively mature and systematic enterprise value assessment theory and method for private equity funds.But when it comes to a start-up SME,the financial system and other conditions are far from perfection.Information for reference is lack,and when an investor is pursuing the listing expectation of the invested company blindly,the valuation of the invested enterprise is inaccurate.That seriously affects the decision of the fund manager.If the value is unreal,it will cause losses to private equity fund investors,and also result in fund managers without receiving excess return.If the valuation is too low,it will not meet the financing needs of the invested companies,those will affect the profitability of the company,and also will affect the expected return of investors.These will seriously hinder the healthy development of China's private equity fund products.Therefore,objective,professional and accurate value assessment of the invested companies is a particularly important part of the operation of private equity funds.This paper takes the X private equity fund as an example.The current status of X private equity fund and the influencing factors of the target company's valuation is introduced at first.Then,an investment plan of Y project is worked out based on the analysis of the valuation of the Y project.Through this case,the proposal of the valuation of the target enterprise by the private equity fund is put forward.At the same time of theoretical research,the users of the private equity fund products provide reference for the practical experience.