Research On The Application Of Gambling Agreement In Private Equity Financing

The operation and development of enterprises cannot be separated from the support of capital.Some enterprises in Our country are particularly difficult to finance due to factors such as scale,credit investigation and unlisted.Many enterprises choose private equity to raise funds,and more than 80% of private equity is realized through betting agreements,because the risk of information asymmetry between investment and financing can be reduced through betting agreements.However,studies show that there are few successful cases in China,with a failure rate of more than 70%.Therefore,through two cases,this paper comprehensively analyzes the problems that need to be paid attention to when signing the association and excavates the factors of success and the methods of avoiding risks.This paper combed the literature of using bet agreement in private equity at home and abroad,analyzing the use of the bet agreement in our country,secondly through case analysis,in a classic case mengniu dairy and huaxia happiness bet agreement signed for two enterprises,standing in the perspective of the financiers,compared to eleven percent with two enterprise case,From sign background,design,process and bet bet effect many aspects comparative analysis,case analysis and quantitative analysis,try to find out the factors in the success of the Mongolian and the reasons for the failure of huaxia happiness,summed up the two companies signed before and after when signed,and sign and avoid the risk of method,and concludes that two companies using the bet agreement in the differences of the results.Set up a logical and complete suggestion system for the future enterprises that need to use the betting agreement for private equity financing.The two selected companies participating in the betting agreement are typical representative,which has a milestone significance in the application history of China’s betting agreement.Mengniu Dairy made reasonable use of the betting agreement,successfully raised financing,and its market share kept rising.CFLD failed to make bets and fell into huge debts,and its corporate performance and brand influence declined.Through the case analysis of two enterprises,it is found that the success or failure of betting is not only related to the environment and policy,but also closely related to the development period of the enterprise,its own growth power,the design of betting clauses,the situation of competitors and the selection of investors.The author believes that before signing the betting agreement,we should carefully choose the investment institution,accurately measure our own strength and rationally bet.When signing the agreement,we should set reasonable betting indicators,combine financial and non-financial indicators and repeat the segmentation game of betting.Finally,we should strictly supervise and reduce the short-term behavior of the management and reduce the risk.