Research On Evaluation Of Private Equity Investment Project Based On The Case Study Of A Fund's Investment In Company X

Private equity investment of capital market development is a major innovation in financial sector,it gained rapid development in china in recent years,its development and gradually mature provided financial support for large,medium and small business,the development of enterprises has a strong role in promoting.As of 2016,the Fund Industry Association released the latest data show that China's equity investment institutions have more than 10,000,with more than 200 thousand employees,the total management of capital over 7 trillion yuan,private equity investment has become one of China's financial sector very important way of investing.High-speed development for China's capital market has brought gratifying achievements,though China as the world's second largest equity investment market,its development maturity and perfection compared to abroad are still distinct.China's private equity investment projects on the development of the imperfect of the late exit of the project caused some very big potential risks.A fund company as a deep plowing private equity industry more than 20 years old company its practice there are many shortcomings.Through the analysis of its investment process and project evaluation for X company,the author finds that the A fund's contract for the private equity investment of X company is in addition to the contracts,books,certificates and prizes and patent certificates for X upstream and downstream customers Carried out,but not based on this further comparison analysis,the evaluation criteria is relatively simple.A fund on the X company's financial analysis,but also only in the initial financial statements of access,making the financial information is relatively thin,thus affecting the judgment of the company X evaluation.In addition,the A fund for the X company's project evaluation is too qualitative,there is no clear evaluation of the index system,making the company's evaluation,the information required and the analysis carried out is not comprehensive system,and no quantitative scoring model,making It is difficult to compare horizontal items between different projects.A fund investment in the X company is not the practice of China's private equity investment industry,the case is the industry's current widespread problems.Project evaluation as one of the most important aspects of private equity investment,determines whether to avoid risks,the right choice of a good business to invest,and thus successfully withdraw from the proceeds.Therefore,these issues must be resolved,thereby reducing the A fund and even the industry's investment risk.Based on the analysis of the causes of the above problems,this thesis introduces two more advanced methods to solve.In view of the financial analysis,this thesis will analyze its financial analysis into the analysis of the current financial situation and the analysis of the future financial situation.The former mainly analyzes the profitability,the solvency analysis,the operation analysis and the growth of X Company This thesis analyzes the project evaluation of private equity investment by using cash flow discount method,net present value method,investment recovery period method and investment calculation method.In this thesis,we introduce the analytic hierarchy process(AHP),combine the previous research results to further study,re-establish the new index system,through the expert scoring method to deal with the average after finishing the criterion layer evaluates and evaluates the judgment matrix of the target layer and the judgment matrix of each criterion layer to the criterion layer,and obtains the weight of each index.Finally,this article based on the above indicators on the X company for each specific target score to calculate the final score and rating to determine whether the A fund should invest in X companies,to give investment advice.At the end of the article,the two methods are compared,and some suggestions are given to the project evaluation of private equity investment,so that the financial analysis method and the analytic hierarchy process can get a universal application in the selection of the project.