Xingmei Cinema Project Research On The Risk Of Private Equity Financing To Gambling Agreement

With the development of China’s investment and financing market,various foreign financial instruments have gradually entered into China,and the word"gambling agreement" has gradually been familiar to operators.The gambling agreement is a mechanism originated in the developed countries such as Europe and the United States to adjust the interests of investors and financiers in the process of investment and merger.The root of the agreement lies in the uncertainty of the future operation of the container side.The basic purpose of the agreement is to achieve the fairness and rationality of investment and financing as much as possible and improve the efficiency of the use of funds.The agreement can not only protect the interests of investors in black and white,but also stimulate the daily operation of financing parties.As a financing tool,the role of gambling agreement is certainly a double-edged sword.On the good side,gambling can solve the problems in the process of enterprise development and expansion,so that enterprises can get the funds needed for enterprise development as soon as possible,and then use the capital to get faster development.At the same time,there is also a bad aspect in the agreement on gambling.The agreement on gambling often brings greater performance pressure to the management of financing midnight,which often leads to more radical business decision-making of financing enterprises.As unrealistic,the enterprises are in trouble,even to the point of bankruptcy and liquidation.In this paper,we take the case of Xingmei group’s introduction of gambling agreement to obtain capital,and take the case of enterprise expansion as an example,to explore the role of gambling agreement as an investment tool in enterprise expansion and M&A.If Xingmei makes proper use of the capital,the gambling agreement can not only effectively protect the interests of all investors,but also play an incentive and control role for the management of Xingmei group,so as to achieve a "win-win" result.If it is not properly used,it may cause Xingmei group to take radical and unrealistic strategic policies under the pressure of gambling performance,thus ignoring the long-term war of the enterprise Slightly,the operation of Xingmei group is in a dilemma,which eventually leads to the result of "double loss".Therefore,when negotiating the gambling agreement,both sides of the investment and financing should set up reasonable and efficient gambling terms in combination with the actual situation of the industry,the reality of the enterprise and the long-term strategy,so as to avoid too strict gambling terms and blindly pursue unrealistic performance,so as to better protect the interests of both sides of the investment and financing.