The Risks And Their Prevention Regarding The Application Of VAM To Private Equity In Private Enterprises

Private equity,originally originated in the United States,has become a widely used financing method in the capital market.The emergence of private equity investment not only solves the difficult problem of capital demand of many enterprises,but also the professional management level and superb capital operation ability of investors can directly promote the rapid growth of enterprises and make great contributions to the vigorous development of the real economy of our country.As a special contract clause in private equity investment,gambling agreement also introduced the capital market from abroad in 2003.In essence,the gambling agreement is a valuation adjustment mechanism,which can effectively protect the rights and interests of investors through the design of the corresponding terms,while constantly adjusting the enterprise valuation and alleviating the information asymmetry between the investment and financing parties,it can also play a supervisory and incentive role to the management of the financing parties.Focusing on the domestic application of gambling agreements in the past ten years,it is not difficult to find that some enterprises use the power of private equity investment to achieve the rapid development of corner overtaking,but in comparison with the actual case of the use of the majority of failed gambling enterprises,they may face the dilemma of cash compensation,control change,gambling disputes.So we can see that the gambling agreement is not a panacea,it is a kind of incomplete contract,there is a hidden huge risk.However,the domestic private entrepreneurs generally lack a deep understanding of the risk of gambling agreement because of the late development of the practical application and theoretical research of gambling agreement in China compared with foreign countries.We must deeply realize that the establishment of risk prevention system is of great significance to the rational use of gambling agreements,only in this way can increase the possibility of win-win investment and financing.Taking the connotation,risk identification and risk prevention of gambling agreement as the starting point and combining the relevant concepts andcharacteristics of private equity,this paper uses option theory and information asymmetry theory to analyze the signing function,risk type and risk prevention path of gambling agreement.Combined with the case analysis method,this paper selects the gambling cases of Charioteer Pharmaceutical and JD capital,explains in detail the motivation of signing the gambling agreement and the content and influence of the three stages of the gambling agreement,and expounds the risks existing in the case from the perspective of six risk points.Finally,the risk prevention and control suggestions are put forward from the three levels of investor,financier and government supervision.At the investor level,it is mainly necessary to do a good job of due diligence in advance and strengthen the supervision and incentive to the financing enterprises.The prevention and control measures are put forward from the three stages before,during and after the signing of the gambling agreement,and a relatively complete risk prevention and control system for the gambling agreement is established.