The Exit Mode And Time Of Private Equity

In the course of the operation of private equity funds, the exit is the key. China’s currentstudies of private equity funds to exit the mode and timing of the theoretical are limited to themacro level, but few will withdraw from a combination of study of the way and exit timing.In practice, the lack of a mathematical model, the exit strategy and the timing is not enoughobjective science. Therefore, the JSSR company as a case at the micro level, to build the exitstrategy and timing choice model, research and private equity funds to exit with the timing ofcertain theoretical and practical significance.On the basis of domestic and foreign theory of private equity fund concepts, features,macro analysis, exit strategy and timing, summary is publicly traded on the IPO, mergers andacquisitions, share repurchases and bankruptcy liquidation five exit the characteristics of theway their selection of influential factors and the exit of the time of the impact factors. On thisbasis, drawing on the law of geometric Brownian motion, the Bellman equation and optimalstopping theory of theory and Ito lemma, building a private equity fund exit strategy andtiming choice model. And then JD investment company, the JSSR chemical companies,private equity fund investment as a case specific analysis of private equity funds to exit time.On the basis of analysis of the JSSR company production and sales of the the JSSRcompany’s future earnings forecast, the use of private equity funds to exit the manner andtiming choice model obtained when the JSSR company cash flow is greater than a certainthreshold, JD The company should opt out. The same time, the decision functioncorresponding to the fixed costs of a publicly traded equity transfer variables, including theconditions to choose some kind of exit strategy and timing, can be used to select a specificexit strategy and timing.