Research On The Application Of Valuation Adjustment Mechanism In A Company Private Equity Financing

Private enterprises occupy a very important position in China's overall economy.However,the difficulty of financing has always hindered the further development of private enterprises.As a private high-tech enterprise,A company is also deeply troubled by the difficulty of financing.In recent years,China's economy has maintained steady growth,and the government is also vigorously developing direct financing and the real economy.Under this favorable economic situation,private equity financing has been favored by the majority of private enterprises.After Mengniu and the investor signed a successful Valuation Adjustment Mechanism,some start-up or growth companies have also signed up Valuation Adjustment Mechanism to develop rapidly.However,there have also been companies like A that have not properly signed the Valuation Adjustment Mechanism and have affected the development of themselves.In this context,this paper takes A company as a case study,and hopes to provide some reference and for A company and other enterprises to apply the Valuation Adjustment Mechanism in the future.Firstly,through the review of related materials and literature collation,this paper starts with the basic concepts,systematically sorts out the theoretical basis of private equity financing and Valuation Adjustment Mechanism,and provides theoretical basis for the case analysis in the following texts.Secondly,it analyzes the basic situation of A company,then analyzing the background and the motive of signing the Valuation Adjustment Mechanism.Thirdly,it's a comprehensive and systematic analysis of the application in A enterprises.Including financial analysis,risk analysis,and on the basis of the work done,analyze the problems existing in the application of the Valuation Adjustment Mechanism.Finally,for the problems found in the analysis process,make the following suggestions: Before signing the Valuation Adjustment Mechanism,it is necessary to set a reasonable and diversified goal and understand the company's own situation fully.At the same time,consider signing in stages.After signing the Valuation Adjustment Mechanism,it will use financial analysis to alert and mitigate the short-sighted behavior of management.Meanwhile,it will focus on relevant influencing factors and dynamically adjust the Valuation Adjustment Mechanism.After the end of the Valuation Adjustment Mechanism,it is necessary to prevent the investors from holding too much shares,and to protect the interests of third parties.