Study On The Withdrawal Mode Of M&A Of Private Equity Investment Funds

With the continuous transformation and development of Chinese economy,more and more new financial intermediaries and more diversified investment tools emerge at the right moment.Private equity investment fund is one of the important forces.The operation process of private equity investment fund is not complicated,which mainly includes four links of raising capital,investment,management and withdrawal.For fund managers,the final exit income of the fund is an important index to evaluate their business ability,so the success or failure of the project has gradually become a concern and headache for more and more managers,most of which focus on the choice of exit mode.Initial public offering,merger and acquisition,buyback and bankruptcy liquidation are the main withdrawal methods adopted by the world's economies.However,the withdrawal structure of different countries is different.Most of the major western developed economies use the withdrawal method of merger and acquisition.On the one hand,because Chinese IPO is greatly affected by the policy and market,its prospects have great uncertainty;On the other hand,some enterprises with declining business are eager to find new business growth points,and the asset injection brought by m&a can greatly improve their profitability.In recent years the country issued a series of policy at the same time as a merger,acquisition and reorganization on the company's support and attention,and further promote the development of m&a exit,in the future development of capital market,mergers and acquisitions from the importance of will as the IPO exit,therefore,this article focuses on private equity investment fund exit way of mergers and acquisitions,and systematically for mergers and acquisitions dropped out of the relevant theories,through the case reveals the trend of m&a in our country exit and some problems,and to promote private equity merger and acquisition in our country exit the related suggestions are put forward.Firstly,this paper expounds the background and significance of title selection,literature review and research ideas.Secondly,it discusses the selection of exit modes and the related theories that may be involved in the process,and further explains the advantages and disadvantages of different exit modes.Then it analyzes the evolution process of exit mode in western economies and the current situation of exit mode selection in China,and takes the comparison result as an example to judge the change process of exit mode of domestic private equity funds in the future.After that,through the specific case of three-dimensional communication merger and acquisition of juwang technology,the advantages of merger and acquisition withdrawal are further explained,and the reasons for private equity funds to choose merger and acquisition are explained in combination with various possible influencing factors.It also summarizes the conclusion of the whole paper,proposes the possible problems under this mode,and gives some Suggestions,so as to provide some new ideas and choices for each participant in the private equity investment market.