Case Study On Investment Evaluation Of Software Development And Service Enterprises By Private Equity Funds

Since the 1980s,China's private equity funds have been continuously developed.Especially after the financial crisis in 2008,the amount of investment in China continued to grow nearly 8 times,from 3,162,261,100 yuan in 2010 to 2,347,027,380 yuan in 2017,In 2018,China's private equity funds The new fund raising of 1.3 trillion yuan.In the same year,the strengthening of market supervision and the implementation of relevant policies led to the development of standardized and diversified private equity funds.Private equity funds have seen an significant growth from scratch to scale.With the implementation of series of measures to improve liquidity and the introduction of the "New Regulations on Assets and Regulations",China's private equity funds have developed steadily and healthily.At the same time,the software development and information service industry is so important that it have drawn attention to Chinese government in recent years.It has been included in strategic emerging industries of the"13th Five-Year Plan" and is favoured by their investment of private equity funds in recent years.As a strategic emerging industry in China,the industry needs strong support from private equity funds.However,China's private equity fund investment market is still primary.So it is difficult to avoid the speculative behavior in the investment process and the blind investment phenomenon aroused by the incorrect investment evaluation.At the same time,the lack of proper investment evaluation for specific industries is the main factor that sets private equity fund institutions in trouble.All in all,the lack of systematic,reasonable,industry-specific investment evaluation and correct risk control measures will definitely cause the blindness and speculation of private equity fund investment,followed by investment income without effective guarantee.In order to solve the above problems,the case study of this paper will be unfolded with the combination of specific enterprises in the software development and service industry and private equity fund investment evaluation.At first,this paper presents the problems faced by private equity fund investment companies.Then it introduces the concept,types,characteristics of private equity funds,the theoretical basis and the operation process of private equity funds used in this article.Then the paper will introduce in-depth study of software development and the L company in service industry,from the perspective of industry and enterprises.After that,the paper will build a investment evaluation system for the L company,by the utiliazation of analytic hierarchy process and fuzzy comprehensive evaluation method.Among them,when selecting the indicators of the investment evaluation system,the paper focuses on the four aspects,namely,the ability of income acquisition,the ability of value creation,policy environmental risk and internal risk of enterprises.Finally,the paper will produce reflections and summarization on the case.This paper will provide some reference for the private equity fund managers who focus on the software development and service industry.