Private Equity Investment Project Evaluation Research On Yunnan H Limited Company

Private Equity(PE) investment is an important means to resolve the enterprise financial issues, and also an important financial tool in China’s financial market, which can help small and medium enterprises solve financial difficulties.At the same time, Private Equity(PE) investment is also a high risk industry, this requires us to make scientific, accurate and comprehensive analysis before our investment to the project. This article will be on the basis of current research results of project evaluation, trying to use existing research method combining with target enterprise’s own characteristics on project evaluation, through the various index to determine the feasibility of PE investment.First of all, I introduce the concept of the private equity,summarized the significance of the development of private equity,reviewed of the history and current status of the development of domestic and foreign private equity, especially compared to the domestic and international private equity evaluation process. Based on the combination of an actual case commenced H company investment background information,use the evaluation process of the private equity, in accordance with the screening project, the initial evaluation project, detailed assessment projects from14items,31small items on the project expand the evaluation, and the introduction of quantitative evaluation by experts on the project score to determine project investment feasibility. At the same time, through the evaluation of the project revealed that the project investment risk may exist, and finally through the exit mechanism for private equity several private equity exit to find the optimal exit ways and appeared exit risk to protect the private equity enjoy a certain amount of revenue.