Research On Risk And Policy Of Using "Valuation Adjustment Mechanism" In Private Equity Financing

For many small and medium-sized enterprises and start-ups in China,financing difficulties are usually one of the problems they need to face in the development period.Private equity financing provides a way of thinking to solve financing problems for these enterprises.However,in order to protect their own rights and interests and reduce the risk of valuation,investors and financiers often sign a supplementary adjustment agreement,that is,the gambling agreement mentioned in this paper.The role of the betting agreement for both sides of investment and financing is to help investors reduce the risk caused by the inaccurate valuation of the target enterprise.For the financiers,the signing of the betting agreement can promote the financing process,and to a certain extent,the signing of the betting agreement can also stimulate the company to operate well.Mengniu Enterprise is the first company in China to sign a gambling agreement in financing.Through this successful gambling,the enterprise grew rapidly.At this stage,the betting agreement has been gradually applied in China's financial market.It is of great practical significance for solving the financing problems of small and medium-sized enterprises and start-ups to analyze the risks faced by both sides of investment and financing and to explore how to avoid such risks in order to achieve the best financing results through deep analysis of the gambling agreement at the theoretical level and the case level.The main research methods of this paper include literature research method,theoretical analysis method and case study method.Through the analysis of specific cases of private equity,this paper makes a theoretical and documentary analysis on the motivation and risk of using the gambling agreement in private equity financing,finds out the risk factors existing in the case,explores the literature on the financing and gambling agreement in private equity financing,and summarizes the relevant research results at home and abroad.Then from the relevant theory,the risk points can appear and the corresponding risk policies are put forward,in order to help more enterprises to use the betting agreement efficiently and reasonably in financing.