Research On The Application Of "Listed Company+PE" Buyout Fund

With the building of the Belt and Road,more and more Chinese companies have gone abroad to seek opportunities for business expansion.However,with cross-border M&A becoming a new appeal to Chinese enterprises,various problems appears subsequently,especially financing difficulties fettering the pace of overseas merger and acquisition.At the same time,the domestic private equity industry is blooming,buyout funds gradually becoming a new force in promoting the development of cross-border M&A.The domestic buyout funds started late but developed quickly.Until now,it has formed a unique type of buyout fund with Chinese characteristics--"Listed Company+PE".This innovative model of fund structure is very flexible and has the advantage of integrating industrial capital and financial capital.And the frequency of using it is getting higher and higher.Firstly,this paper reviews the domestic and foreign theoretical research on buyout funds which laying a theoretical foundation for the application research of "listed company+PE" buyouts in cross-border merger and acquisition.Then it introduces relevant theories of M&A and analyzes the application status of "Listed Company+PE" buyout funds in market.Thirdly,combined with the case of acquisition of LEDVANCE by MLS,it analyzes the application of this special kind of buyout fund from four aspects,including the motivation of establishment,the specific application process,the role played by listed companies and the problems it brought about.Finally,based on the analysis of the above cases,this paper makes a summary,and gives different Suggestions from the regulatory level and buyout fund level,such as strengthening the integrity of information disclosure,paying attention to the transaction structure design,and reducing the principal-agent risk through multiple channels,etc.,which has certain reference significance for the development of "Listed Company+PE" buyout funds in China.The conclusion of this research is that "Listed Company+PE" buyout fund has the dual function of improving the efficiency of mergers and acquisitions,and it can balance the interests of all participants through the design and arrangement of the ingenious transaction structure so as to achieve a good situation of multi-win.However,as an innovative mode of buyout funds,it is still in the stage of exploration and development.Therefore,listed companies should fully consider potential risks when setting up buyout funds,and external regulators should establish corresponding supervision and management mechanism to restrain the non-standard behaviors of all parties involved in such buyout funds,so as to achieve better development.