Research On The Risk Of Private Equity Financing Of Small And Medium Sized High-tech Enterprises

In recent years, the vigorous development of the domestic private equity industry for small and medium sized high-tech enterprises has brought new opportunities for development. It’s not only solved the problem of shortage of funds for enterprise development, but also let enterprises to rapidly grow up. Private equity financing, a new financing model, has changed the single situation of financing, and became more popular with small and medium high-tech sized enterprises. Currently, although a lot of small and medium high-tech sized companies cause private equity financing, that does not mean that the successful using of the private equity financing. Because of small and medium high-tech sized enterprises with feature of asset-light, too large intangible assets, poor corporate governance, so after the using of private equity, these features can enlarge the risk of private equity financing, such as the development of enterprises strategic risk, operational risk and market risk and so on. Therefore, from the perspective of enterprises, the article focus on private equity financing risk identification, assessment, analysis, and proposes appropriate measures to control risks, so that enterprises can be successfully use private equity financing.In this paper, taking high-tech company M as example, based on the theories of finance growth cycle and enterprise risks management to analyze the company’s potential risks in the process of its private equity financing in the recent years. Fuzzy synthetic evaluation method will be used to analyze the risk in the paper. Fuzzy synthetic evaluation method is a process to establish an evaluation system during the analysis. It will first identify the enterprises’ internal and external risk factors, and then establish the hierarchy structure to confirm the relevant index weight; finally, results will be calculated to evaluate the degree of the risk. Through case analysis, M company conduct private equity financing in 2013 and 2014, and gets assessment of the degree of risk of financing that belongs to low level, but thus faces some risk of internal operations and external environmental risks, so it should take to this some related control measures.