Research On The Implementation Path Of PE Financing Under The Multi-Target Valuation Adjustment Mechanism

Private equity,one of the main financing means in the capital market,provides a key financing mode for small and medium-sized enterprises.In our country,the private equity is characterized by a valuation adjustment mechanism in the vast majority of cases.This phenomenon is due to its adjustment effect on the expected value.The valuation adjustment mechanism can reduce the risks faced by investors and incentivize the financiers.However,due to the limitation of the single bet target in the domestic private equity market,in reality,the vast majority of cases of bet failure,investors and financiers can not get benefits.In the case of private equity with VAM,the successful experience of Xiaomi Group and Morningside Capital is of great reference.In the eight years,the financing enterprises completed the multi-targe valuation adjustment mechanism provisions,and maintained a high growth rate and very rich growth.Financing enterprises and investment institutions have obtained large capital gains.At present,the national policy strongly supports the development of small and medium-sized enterprises.Therefore,it is particularly necessary for us to study the implementation path of the financing with multi-targe VAM of Xiaomi Group and Morningside Capital,and at the same time provide reference and help for small and medium-sized enterprises with similar needs.The research direction of this paper is process research and mechanism research,and adopts literature research method,case study method,financial index analysis and other research methods.Based on the game theory,goal setting theory,equity financing theory and option theory,this paper sorted out the implementation time line and key events of the financing plan of Xiaomi Group,and studied the implementation path of private equity financing with multi-target valuation adjustment mechanism.On the basis of the actual situation of the case,this paper qualitatively studies the process of route selection,studies the action mechanism and evaluation effect of private equity financing with multi-objective valuation adjustment mechanism,through the game model,quantitative analysis and other methods.It is found that the multi-objective valuation adjustment mechanism can help financiers reduce the cost of financing,increase the amount of investment,encourage and attract strategic investors,etc.In private equity financing,at the same time,its risk is limited.This paper considers that multi-objective valuation adjustment mechanism is a successful scheme that can be popularized.On the one hand,this paper contributes a case study in the current field of theoretical research;On the other hand,we identify the success factors and offer a new approach to the private equity fund market.This article for similar companies in the domestic private equity financing in the market can be more successful using valuation adjustment mechanism,at the same time,the research content of this article can give small and medium-sized enterprises to build a good environment.