The Feasible Analysis Of Stock Right Investment To Zhong Tian Pharmaceutical Company

Private Equity Funds (PE), as a form of investment, is one of the new words which are very popular in socio-economic development in recent years. PE went through the bustle of1980s and the silence of1990s, and reemerged from the Western Hemisphere in the early21st century and expanded into the newly emerging market, causing numerous waves of investment. Nowadays, in Europe and America developed countries, the annual amount of investment of PE account for4%to5%of the total GDP and PE become important financing means, ranking only second to loans from banks and IPO. With the pour of foreign PE into China, PE is becoming more and more normal. Since2001, the entrepreneurial environment keeps changing, all kinds of preferential policies lead to the integration of entrepreneurs and capital, PE investment market is directly influenced by policies, the limit of collect become fewer and fewer, investment in space is gradually released, exit channels become easy and smooth.With the approval of security and insurance company into PE market, PE investment industry is becoming the most active constituent part of China’s economic entity. The development of PE can expand the capital market, lead to win-win situation of investors and raisers, help entrepreneurial companies solve financing problems and promote enterprise value.This article takes the example of the equity investment of Gansu biological medicine investment fund company to Zhong tian Pharmaceutical company, under the direction of theory of equity investment and analysis of investment feasibility, from the basic situation, industry profiles and market analysis, the main business and operating results, the main competitive advantage, the company financial analysis, investment income estimates and risk analysis,each target of Zhong tian Pharmaceutical company was evaluated and analyzed, which prove the feasibility of this investment and provides practical suggestions.This article used some practical examples of corporations and referred to related literature. According to process of equity investment, evaluating and analyzing models of investment feasibility have been established, which give demonstration to other equity investment funding company.