Strategies And Effects Of Leveraged Acquisitions By Buyout Funds

In recent years,with the prosperity and development of emerging industries and the transformation and upgrading of traditional industries,mergers and acquisitions have gradually become the main means for enterprises to open up markets,and the main difficulty for enterprises in mergers and acquisitions is that it is difficult to find suitable financing channels.With the continuous innovation of financial products and the continuous improvement of fiscal and taxation policies,buyout fund has begun to receive widespread attention in the M&A market.In the long run,the state continues to encourage mergers and acquisitions based on industrial integration,and the fluency of M&A exit channels continues to improve.In addition,local governments have established government guidance funds to promote state-owned enterprise reform and industrial integration,providing buyout funds.Strong financial support has also provided opportunities for the continuous expansion of buyout fund.This article combines the case of JCET acquisition of STATS,using case analysis method and literature review method to analyze the use strategy,role and buyout effect of buyout funds.Through research,it was found that the buyout fund assisted JCET to complete the acquisition.While alleviating the financing pressure of JCET,it also introduced strategic investors with rich management experience and abundant funds.However,through analysis,it is found that the synergy effect between JCET and STATS is not obvious.The continued loss of STATS has seriously affected the performance of JCET.Moreover,after JCET raised funds twice,its first major shareholder lost control,which may adversely affect its future operations.In this regard,this paper gives relevant countermeasures from the formal design of fundraising entities of buyout fund and the distribution mechanism of strategic investors and listed companies.