Research On The Analytical Framework Of Private Equity Investment

After years of development,private equity investment funds have become an important force and promoter of social finance and economic development.The scale of domestic private equity investment funds has also maintained a relatively high growth rate.Private equity funds have played a role in promoting macroeconomic development,optimizing resource allocation,adjusting industrial structure,balancing regional economic development,and promoting the growth of SMEs.From the perspective of the Internet industry Y company to be invested by the private equity investment company H fund,from the perspective of investment value mining and investment risk investigation,it is carried out from the basic situation of Y company,business operation and financial analysis.Based on the results of the survey,a comprehensive analysis of Y company using Porter's Five Force Model Analysis,using the free cash flow discount method and the comparable company method to evaluate the value of Y company.Finally,the investment plan and transaction structure of H Fund Investment Y Company were designed,which revealed the risk of investing in Y Company.Through the review of the investment analysis process of Y company through H fund,readers can further understand the investment decision-making framework of equity investment.Specifically,the investment team needs to analyze the company's situation from the legal,business,and financial aspects,including the investigation and analysis of the basic situation and historical evolution of the Y company from the legal level;and the operation status and industry of the Y company from the business level.The situation was analyzed;the operating performance of Y Company was evaluated from the financial level.Based on the above analysis and risk investigation basis,combined with the analysis of Y company's financial statements,financial ratios,etc.,the combination of qualitative and quantitative methods to predict the performance of Y company.Using the free cash flow discount method and the comparable company law to evaluate the relatively reasonable value of Y company,it provides a theoretical basis and strong support for the design of investment terms.Finally,the investment plan and key terms were designed.