A Case Study Of Equity Investment Decision Of ZX Private Fund

Private equities finance funds through non-public method and invest the equity in private companies.They act as the major financial investors and have an influential impact on the operation of the companies.After that they quit and benefit from the investment.This method overcomes the difficulties of financing involved in the small-And-medium enterprises,boost the development of national economy and allocate the resources more reasonably.PE is quite risky,with bad liquidity,asymmetric information,long cycle,And involved with expertise.In this case,it is very significant to have a deep understanding of the objective companies And a thorough and correct evaluation.In China,there are many PE theorems And practical research,but,as to how the PEs invest,evaluate the projects and make decisions,related research is scarce.As the development of the PE market,optimization of the investment of equity investment,standard operation of small-and-medium enterprises and have a successful coordination become very significant.The article focuses on the project executed by ZX Private Equity,based on the background of the PE,procedure of the investment in equity,reasons for investment And the evaluation of investment value.In that case,this article states the logic,investment procedure,enterprises due diligence,financial analysis And evaluation methods in projects selection of PE through the discussion of ZX's analysis of industry,commercial mode,financial status And exiting strategies in project A.The Article prefer analysis motivation of the private equity And how to make A decision.The purpose of the private equity is increasing equity value by providing industrial integration for the enterprise.The analysis of the case is of great impact on the PE And small-and-medium companies.For example,the standardized investment procedures,Telematics' selection of objective,evaluation of the investment values,exiting strategies And risk control Are beneficial to PE.Besides,it is very instructive for how the developing small-And-medium enterprise Attract PE.There Are some tiny defects in the studies in the Article;however,it is convincing that this Article can certainly proved some valuable information for both PE and small-and-medium enterprises.