Study On Operational Effect Of Balance Fund Based On “Listed Company + PE” Fund Model

At present,domestic listed companies are generally facing development problems,such as slowdown in growth,technological innovation,and industrial transformation.Meanwhile,as a typical example of capital service,"Listed Company+PE"-type M&A funds have outstanding performance in economic restructuring and corporate governance optimization.Meanwhile,This model is not only recognized by the capital market but also favored by the majority of investors,and it has also become one of the important ways for listed companies to expand financing channels,improve capital operations and carry out mergers and acquisitions.However,this M&A model is still in the development stage,and its motivation and operating mechanism should be viewed rationally to prevent the possible risks in the process of servicing listed companies.This article is divided into six parts which uses the case study to analyze the motivations,operating conditions and risks of the "listed company+PE" M&A fund named Huaian Balance Fund.Firstly,based on the existing research results at home and abroad,it discusses the relevant concepts,operating characteristics,main classifications,advantages and disadvantages of the model.Secondly,analyze the transaction participants of this fund and the motivation for setting up,and then point out the possible risks.Then go into the specific operation process of the fund.Combined with the market research method and the enterprise EVA performance evaluation method,it comprehensively analyzes market performance,revenue of related investment projects and the impact of the merged party’s financial performance on the listed company during the period.Finally,discuss the problems and causes in its operation.The research in this paper shows that listed companies will participate in "listed company+PE" M&A fund for the purposes of financing leverage,investment risk reduction,and M&A buffers,but the use of this M&A model may not necessarily bring expected benefits to both parties: On the one hand,the establishment of M&A funds and the release of relevant M&A transactions have limited long-term market value.On the other hand,under the double principal-agent relationships,problems are easily generated,such as unidentified investment project risks and insufficient information disclosure.In addition,deep-seated reasons,such as lack of internal supervision,insufficient due diligence and value assessment,and lack of post-investment management will cause unsatisfactory M&A integration and ultimately damage the interests of investors.Therefore,the corresponding prevention and control system should be designed,combined with the risk fromearly establishment,mid-term operation and later exit of the model,in order to improve the operational effect of the "Listed Company+PE" M&A funds.