A Study On The 'Listed Company + PE'M & A Fund

"Listed company +PE" mode M&A fund,which is the first one being set up by listed company and private equity funds(PE)in China,has been founded formally by the Silicon Paradise and Dakang Pasture Farming in September 2011.This sought-after model has emulated by many listed companies and private institutions,because it not only could meet the needs of listed companies for the acquisition of the target company,but also helping private equity funds to lock the project launch channels in advance and achieved a win-win situation.The main structure of the model could be illustrated as follow:the listed companies and private equity fund signed an agreement to set up M&A fund.The M&A fund gained control of the target enterprise through the acquisition of the underlying company's equity at first,and then carried out some optimization,integration and restructuring through the target enterprise in order to improve the performance and enhance values of the enterprise.Finally this enterprise has been acquired and joined into the listed company system,the private equity funds exited at this stage.In order to get a better understanding of the "Listed company +PE" mode M&A fund,this paper will focus on analyzing the historical evolution,business model,advantages and problems,as well as legal compliance related issues of M&A fund that set up by private equity funds(PE)and listed companies,and revealing the particularity and necessity of the "Listed company +PE" mode M&A fund.Taking the M&A funds of channel cinema chain industry as an example,through a comprehensive analysis of channel cinema chain industry's operation and governance mechanism,including the establishment of the funds,the selection of investment targets,the adjust of financial legal survey screening of investment to study the operation pattern of the "listed companies +PE" mode M&A fund,showing the way that the SanPower Group using the "listed companies +PE" mode M&A fund to give a full play on leverage effect of capital,and quickly making the mergers and acquisitions of cinema chins by using social capital.Finally,summarizing the significance of developing the "listed companies +PE" mode M&A fund through the case study,and puts forward some suggestions on the development of this model.