A Private Equity Case Analysis Based On H Company

Private equity funds pursue high yield, high risk, as a result, a complete set ofselection criteria of the enterprise and the valuation basis is necessary. Private equityinvestment enterprises, how to choose the financing from which aspects analysis thefinancing enterprises, implementation of both "marry", as the main research content of thisarticle.In China，private equity has been booming developed since the year of2000, andplayed an important role in the field of direct financing. In the financial sector, privateequity can optimize the distribution of financial market, promote the stable developmentof financial markets; In the field of enterprises, private equity has broaden the channels ofenterprise financing, promoted the upgrading of industrial structural and cultivated publicresources. On the one hand, the enterprise financing through equity financing way andincrease its own internal value, on the other hand, the private equity’s value has beenincreased through the development of the invested enterprise.In this thesis, we focus on the options of the private equity firm of financing objects,and how to choose the enterprise and make a decision of investment. By analysis of Hcompany’s investment, choosing the way to the enterprise investment and decision in theform of case reveals. By analysis of H company’s investment, in the form of case analysisand how to choose the enterprise investment decision-making rights and interests. Hcompany is a set design, manufacture, installation and service as one of the manufacturingand engineering services for auto production line, the company has good growth in recentyears, the rapid growth of the performance highlights the company the bottleneck problemof insufficient capacity, so the company plan through bank loans and equity financingcombination of financing, building a new production base to expand capacity. M companyas a private equity investment institutions, stand in the perspective of private equity funds,this paper based on field of investigation, demonstration, H company, from the autoproduction line industry development present situation and trend, the market spacecompetition position, competition, enterprise, enterprise operation mode, enterpriseprofitability, financial, investment opportunity and risk analysis, structure design, so as to whether the project is to make investment decisions. The case is a combination of theoperation mechanism of private equity investment, operation process, investment strategy,valuation basis and deal structure, inform the financing enterprise of private-equityinvestment operation and the focus of enterprise management, target for equity financing,improve enterprise financing success probability. At the same time, it shall be referencefor other financial industry, and complement for each other.