S Private Equity Fund Investment Case Study

Private equity(PE)funds are financial actors that raise billions of dollars in investment each year.They use these funds to buy well-performing companies with high amounts of debt,take them private,and promise their investors outsized returns in the process.PE take an active role in the invested enterprise board of directors,use their own social network resources to provide cutting-edge information for the enterprises,provide value-added service from many aspects,bringing about the value promotion of the invested enterprise.There is no doubt that small and medium-sized enterprises is an important and indispensable part during Chinese economic and technological innovation,limited by the relatively low capital volume,weak social influence and micro social credibility,the small and medium-sized enterprises face with a shortage of funds,lack of information,and many other problems,such as to raise the funds required for the daily operation and future development,optimize its own enterprise management system,perfect the incentive mechanism,to maximize flexibility advantages of technological innovation.The correct and reasonable evaluation about small and medium-sized financing enterprises is vital to PE.Optimize the investment process,and urge small and medium-sized enterprises to operate in compliance,so as to achieve a win-win situation.This article means to analyze “The equity investment decision-making between S private equity and Z company” as the study object of the case,we have constructed a comprehensive investment system as far as possible,including the current status of private equity developing,the current categories of funds and the corresponding operation mode,investment decision-making process and so on,respectively.And then doing deep analysis according to the national policy,industry prospect,enterprise development aspect to illustrate investment motivation,next,estimate the enterprise value,prejudge investment risk,design investment programs,anticipate the exit way,gradually hold the final investment decisions in-depth,using quantitative and qualitative analysis tools from macro to micro to catch the sensitive point of market situation.Finally find the deficiencies in the process of investment and corresponding Suggestions are put forward.Through the case study,it shows great significance to private equity firms and small and medium-sized enterprises.For example,standard the investment process,the procedure of investment target selection,investment value analysis,risk identification and control,exit strategy of the medical information industry are all helpful for private equity firms.Secondly,it has certain reference significance for the developing small enterprises to standardize their own operation in order to attract private equity investment.Finally,the paper puts forward some Suggestions to accelerate the construction of multi-level capital market.The shortages of the research are mentioned as well,sincerely hope this paper can play a certain reference to private equity funds and small and medium-sized enterprises.