Research On The Risk Control Of "Listed Companies + PE" M & A Funds

As a financial innovation under the new economic situation in China,M & A fund of "listed company + PE" mode is popular all over the country as soon as it rises.However,the new model of M & A fund appears to be prosperous,but there are many problems behind it.In practice,there are various organizational forms,weak internal control,blank legislation and supervision,and a large number of risk factors have accumulated.According to the statistics,nearly 62% of the funds in China have not made substantial progress in investment since their establishment,and have become "zombie funds" without any movement."Listed company + PE" M & A fund has a long duration,many participants in various processes,complicated interests involved,any process operation blocked will make M & A fund fail,resulting in human and financial losses of all stakeholders.This fact also draws the attention of listed companies to the risk and control of the new model of M & A fund.In order to ensure the successful operation of M & A fund,it is necessary to analyze the risk of M & A fund,identify the causes and take a series of countermeasures.Based on this,this paper takes Mingtai aluminum M & A fund,a newly established M & A fund,as the research object,and analyzes its risk control problems according to the operation process,in order to provide reference for the improvement of the risk control system of the model M & A fund.First of all,this paper begins with a review of the relevant literature,briefly introduces the relevant research of "listed companies + PE" M & A fund risk control,and makes a bedding statement of the main concepts and theories involved.Secondly,it introduces the basic situation of Mingtai aluminum,ruizhan assets and M & A fund.At the same time,it systematically reviews the establishment of M & A fund project of Mingtai ruizhan,the specific operation process and the establishment motivation.Thirdly,combined with the general situation and actual operation of M & A fund,this paper analyzes the main risks faced by M & A fund of Mintai aluminum from the overall level and process level.Based on the whole level,risks mainly include system risks,information disclosure risks and insider trading risks;based on the process level,according to the operation sequence of M & A fund,it is divided into five stages: establishment,financing,investment,management and withdrawal.Due to the different characteristics of each stage,risks have different manifestations,mainly including moral risks,integration risks and default risks.Thirdly,the causes of risks are analyzed from three aspects: macro environment,internal management and inherent disadvantages of the new model.The macro environment factors are mainly international trade friction,fierce industry competition and lack of legal system.The internal management factors are mainly the lack of M & A fund in professional management personnel and the lack of dynamic risk control concept.At the same time,the "listed company + PE" model The double principal-agent relationship and high financial leverage are also the adverse factors that lead to the risk.Finally,according to the action path and causes of different levels of risks,this paper puts forward suggestions on the risk control framework from the perspectives of internal control and external supervision.While designing the internal risk control mechanism of M & A fund,we should focus on the construction of corresponding laws and regulations system,industry self-discipline system,etc.o as to reduce the operational risk of "listed companies + PE" M & A fund.This paper holds that there are many risks in the overall and process level of "listed company + PE" M & A fund.The reasons are not only the impact of the external environment and the lack of internal management,but also the limitation of the inherent disadvantages of "listed company + PE" model,which needs to be dealt with from the two lines of internal control and external supervision.