Application Research On The Exit Mechanism Of Partnership M&A Funds

In recent years,Chinese economic development is in an important transition period,and M & A funds are increasingly participating in corporate acquisitions in capital operations.In the operation process of M & A funds,the exit link is an extremely important link in each operation link,and it determines whether the M & A fund can end successfully and obtain the expected returns.However,the existing exit mechanism of China's M & A funds is relatively scarce.The mainstream exit mechanism in the existing exit mechanism: the IPO or equity transfer exit mechanism has certain defects.This article takes the exit mechanism as the starting point,and focuses on the first case of the exit of a partnership M & A fund,that is,the Dingliang Huitong M & A fund was acquired by Shandong Xinchao Energy Co.,a listed company,and all its property shares became a subsidiary of the listed company.Based on the relevant theories of the exit mechanism of M & A funds,relevant conclusions are drawn and suggestions are made.At present,the exit mechanism of M & A funds includes IPO,backdoor listings of target companies,direct acquisition of target assets by listed companies,direct acquisition of M & A funds by listed companies,sale of equity to strategic investors,and repurchase and liquidation exits of target companies.This case belongs to a listed company's direct acquisition of a merger and acquisition fund,and its exit trading operation is typical and representative.Dingliang Huitong M & A Fund is a limited partnership,Shandong Xinchao Energy is a listed company,and there are many obstacles when a listed company acquires a limited partnership.In order to facilitate this merger,Dingliang Huitong demolished the structured arrangement and replaced it with a flat design and disclosed the investors' penetrating information disclosure.Xinchao Energy Company established a wholly-owned subsidiary to acquire the property share of Dingliang Huitong general partner.The general partners withdrew from the cash,and the remaining limited partners withdrew from the M & A funds by holding the shares of the listed company.In this case,Dingliang Huitong did not participate in listed companies when it was established,so its active management ability is strong;the demolitionof structured arrangements and reduction of leverage will help the regulatory authorities to review and promote the smooth exit of merger and acquisition funds;the regulatory authorities will disclose information The quality requirements will gradually increase,and penetrating information disclosure conforms to the regulatory trend;the establishment of a wholly-owned subsidiary by a listed company to become the new general partner of a merger and acquisition fund is an innovative model to reduce compliance risks.Based on the case analysis,this article puts forward relevant policy recommendations: M & A funds should strengthen risk control,including control of policy risks,asset price fluctuation risks,and moral hazard controls;listed companies should maintain the stability of the controlling shareholder position to maintain stock price stability and promote transactions Complete efficiency;the supervisory authority should improve the information disclosure system and implement comprehensive supervision.It can start by strengthening the requirement to disclose the information of the transaction subject,the transaction plan and the income arrangement.