A Case Study Of "Baofeng Technology+Jinxin Fund" Participating In M&A Of MPS

From 2014 to the first half of 2019,the total amount of M&A of enterprises in China reached 3434.5 billion US dollars.In the choice of M&A methods,many enterprises with the intention of M & A have chosen to use M&A fund to implement M & A,a big branch of M & A Fund — "Listed company + PE" is also active in M&A market.In addition,in cross-border M&A,it provides a solution to the problem of capital shortage of listed companies.However,due to the short development time of this mode and the lack of M&A experience,enterprises should pay attention to risk prevention,reasonable planning,and avoid the failure of M&A.This paper takes the participation of "Baofeng Technology+Jinxin Fund" in the M&A of MP&Silva Holdings S.A(MPS)as a case study,using "literature analysis method" and "case analysis method",this paper mainly analyzes the causes of the failure of M&A in the application of listed company M&A funds,and provides some experience for standardizing the development of listed company M&A funds and expanding its application in cross-broder M&A.In this case,MPS is on the verge of bankruptcy within two years of the acquisition of a 65% stake in MPS by Jinxin Fund,causing its failiure.In the whole process of M&A,although various capital parties have set up a complicated "priority-middle-post" structure for the fund,it has greatly reduced the amount of capital contributed by the listed companies,however,due to business integration,information disclosure,and other problems,the merger was not implemented smoothly in the end.This paper mainly analyzes the reasons for the failiure,the details of the merger,the impact of the merger on the financial situation of the company,and the Stock Valuation,this paper sums up the reasons of the failure of M&A about listed compay type M&A fund in this case,and summarizes the experience and enlightenment of standardizing the development of this mode,so as to provide relevant reference for Future M&A.