Analysis Of AVIC Trust's Participation In CAGR Merger

In recent years,China's trust companies in order to break through the traditional business model,and actively explore business innovation,the formation of trust companies to participate in mergers and acquisitions business,credit asset securitization business,family wealth management business and other new trends.M& A business as a trust company to vigorously develop one of the new direction,has a huge market space and market prospects.This paper explores the pattern and effectiveness of trust participation in M & A business from the perspective of trust company,and puts forward some solutions and policy suggestions on some problems in the form of case analysis.The first part of this paper introduces the background knowledge of trust and mergers and acquisitions,combs the current situation and innovation trend of trust industry in China,and summarizes the existing research results.It is found that trust participation has the advantages of policy,operation and capital,This paper focuses on the acquisition mode,the equity financing mode,the equity financing mode and the active management mode.The second part introduction AVIC Trust shares CAGR to participate in M & A,and makes a brief introduction to the M & A case transaction.It deeply explores the transaction structure and transaction process of the case,and summarizes the important details of the transaction contract.The implementation process and the exit process are fully described.The third part analyzes the motivations of the case,analyzes the behavior of nested limited partnership and nested shell in the case transaction mode,and makes a judgment on the investment result obtained by AVIC Trust in the acquisition case.In the analysis of mergers and acquisitions results found that the trust equity financing M& A model for the enterprise to quickly raise the required funds,the trust company to rely on their own advantages to participate in corporate mergers and acquisitions activities in the expansion of business innovation,but also to achieve the trust company and business mutual benefit Win-win situationThe fourth part discusses the shortcomings of the case,including the risk of the preferred dividend payment,the risk of the preferred stock valuation discount,the risk income of the trust product,the lack of active management ability,the improvementof the shortcomings,such as increasing the priority Share dividend guarantor,re-estimate the value of equity exit,optimize the trust product risk-return matching,optimize CAGR governance structure.At the end of this paper,the author summarizes the above contents,and gives some suggestions on how to improve the trust supervision system,construct the national trust product transfer system and enhance the initiative management level of trust company in the inspiration suggestion of the trust companies participating in the M & A.