Case Study Of Mengniu's Successful Use Of Gambling Agreements In Private Equity Financing

As a relatively new type of financing,private equity financing,due to the successful introduction of Mengniu in 2005,has gradually begun to occur in various types of enterprises in my country.According to statistics from relevant institutions,the unique feature of private equity financing in my country is that more than 80% of private equity financing has participated in gambling agreements.The gambling agreement,also known as the "valuation adjustment mechanism",is actually a financial option.The existence of the gambling agreement reduces the risk of asymmetric information between the investment and financing parties,and can also protect the investment and financing parties to a certain extent.interest.Therefore,research on gambling agreements is of great significance to SMEs that introduce private equity financing.The most representative of these is Mengniu's betting against three institutions including Morgan Stanley before it went public.This is the first successful betting case in China.In the end,Mengniu exceeded its expected performance indicators.Won the bet,and successfully listed on the Hong Kong Stock Exchange.This article is based on the Mengniu case.It is different from others.From the perspective of Mengniu as a financier,through a comprehensive analysis of this classic case,the three aspects of gambling background,gambling content,and gambling results are representative.This time,we conducted a comprehensive anatomy of the gambling,grasped every detail,then analyzed it from all aspects,cracked down one by one,found out the reasons for success and summed up the successful experience,and finally combined the case analysis for the whole process of signing the gambling agreement.Recommendations,with a view to providing some successful ways for other companies with private equity financing needs.