Research On The Application Of Gambling Agreement In Private Equity

China's small and medium-sized enterprises in promoting economic development has made a great contribution,because of the rapid development of enterprises,endogenous financing has been unable to meet its huge capital needs.And China's high listing conditions,most small and medium-sized enterprises difficult to meet the listing requirements,so that China's small and medium-sized enterprises face more serious financing difficulties.With the development of economy,private equity also has a rapid development,enterprises can choose the financing methods more and more diversified.Therefore,many small and medium-sized enterprises will seek private equity financing,to alleviate the shortage of enterprise funds,for the future development of enterprises to lay a solid foundation.Companies often sign betting agreements in the process of introducing private equity financing,which has become a habit in the industry.In fact,the betting agreement is a kind of valuation adjustment mechanism,the introduction of the betting agreement is mainly due to the existence of information asymmetry between the two sides caused by inaccurate valuation of enterprises,at the same time can stimulate and restrain the management of financing enterprises.It is because of the ability to solve these problems,so the betting agreement is widely used in China's market.But a large number of enterprises in China in the gambling has not been successful,and ultimately led to the loss of control,corporate bankruptcy,litigation and other difficulties,such as Prince Milk,Yongle and so on.Therefore,there are some risks in the use of gambling agreements,these risks exist because the management of financing enterprises do not really understand the connotation of the betting agreement,only in order to raise a large amount of funds in the short term,and signed an impractical bet agreement.If the enterprise can rationally set the terms of the betting agreement,the use of the funds raised,set up a reasonable development strategy,the enterprise can be developed rapidly,such as Mengniu,Sina such examples.Therefore,this paper analyzes the successful use of gambling agreements in China's small and medium-sized enterprises,for China's small and medium-sized enterprises in the use of betting agreements to provide reference suggestions,but also for small and medium-sized enterprises to provide a new way of financing.This paper studies the case of the introduction of dual-British shares into private equity investment,and introduces in detail the specific terms of the betting agreement,the development prospects and implementation of the industry in which the financing enterprise is located.Based on the theory of information asymmetry,principal-agent theory and option theory,this paper analyzes in detail the motivation,clause setting,risk control and effect evaluation of the two sides ' introduction to the betting agreement.Finally,through the above analysis,it is concluded that dual-British shares can eventually be successful in betting on the external environment and their own development situation,signed a reasonable agreement on gambling,the introduction of enterprise development needs funds,and ultimately achieve a win-win situation for gambling.The conclusion is that China's small and medium-sized enterprises in the combination of external environment and their own advantages on the premise of prevention and control of potential risks,the courage to sign provisions to set a reasonable agreement on gambling,the introduction of enterprise development needs funds,so that enterprises can achieve rapid development.