A Case Study Of Private Equity Post-investment Management Of Company A

Private equity funds are securities investment funds that raise funds from specific investors in a non-public manner and invest in specific targets.At this stage of development,China's private equity funds need to shift their focus from pre-investment to post-investment to provide value-added services to the target companies.In this context,this paper uses the field investigation method,literature research method and multi-case analysis method to study private equity fund company A and three target companies,and explores the operation and practice of private equity fund post-investment management for specific types of post-investment management services.Specifically,private equity company A provides comprehensive services in post-investment management services,which well reflects the cutting-edge service types of China's current post-investment management industry and has A strong research value.Taking B,C and D companies as examples,A company provides diversified service forms to meet the objectives of target customers.First of all,company A assisted company B to acquire high-quality medical device enterprises,which improved the diversification degree and product promotion ability of company B,and improved its asset quality and profitability.Secondly,the private equity company A assists the target company C to solve the market development and financing problems,not only investing in the target company,but also supporting the enterprise to accelerate product research and development and market promotion;It also provides strong guidance and help for its smooth IPO by making use of its experience in capital market listing accumulated over many years.Thirdly,the private equity company A also assisted the target company D to successfully IPO.Private equity is not only company A to invest money to the target company,and provide support in the subsequent operation and development,and support the D company to speed up the products developing and market promoting,at the same time with the aid of its own good interactive development model of industry chain,to realize the support drive the upstream and downstream to upstream downstream and upstream and downstream fu good investment strategy to the middle path,boost customer enterprises bigger and stronger.Finally,private equity company A will also help the target enterprise to obtain bank loans to facilitate the development of the enterprise.In the above cases,through the analysis of the annual report disclosed,this paper finds that the above post-investment management activities have played a promoting role in the good development of the main financial indicators,and company A has also achieved high investment returns and performance,which to some extent demonstrates the importance and necessity of post-investment management.However,in the practical process of providing post-investment management services,company A has also exposed certain problems,which are mainly reflected in the following four aspects: the initial level of post-investment management mode,insufficient team personnel,limited types of value-added services and the lack of performance appraisal mechanism.These typical problems are also common problems in post-investment management industry.Therefore,in order to further overcome these typical problems,improve the post-investment management activities of private equity company A,set up a professional post-investment management team,and provide a better value-added services for the target enterprises,we need to start from the following three aspects: first,invest in human resource development,and improve the professional level.Carry out regular business training and internal communication to make it regularized and institutionalized;Broaden the vision of business personnel through internal and external communication;Through the cooperation with the industry's top private equity fund growth experience,learn advanced foreign experience.Second,implement fine management after investment to improve the performance of invested enterprises.After defining the responsibility subjects of post-investment management,the implementation procedures and frequency of post-investment management,the contents of post-investment management,and the rewards and punishment measures of post-investment management shall be determined in the form of the company's rules and regulations.Establishing a special post-investment management department to coordinate work and improve efficiency.Generally,the post-investment management should cover the tracking and understanding of the project,the reporting and handling of major issues and risks of the project,the provision of financing guarantee,and the assistance in finding suitable m&a enterprises according to the needs.Finally,we should strengthen the relationship between the management personnel and the invested project to realize the binding of interests.Only by connecting the interests of managers and projects after investment can the enthusiasm of employees be motivated.On the one hand,we should strengthen the spiritual incentive.In the form of system,the project manager and the project team should have more say in the project decision,give full play to the subjective initiative of the business team,and provide spiritual incentives.On the other hand,material incentives should be used to bind the interests of the project with those of the employees.For example,set the bonus coefficient of the company's employees;Motivate the project team according to the phased achievements of the project.