Analysis On The Operation Model Of "Listed Company+PE" M&A Fund

The "listed company + PE" merger and acquisition fund is a joint venture between a listed company and a private equity investment company to establish a merger and acquisition fund.This model of M&A funds has rapidly gained market recognition with its innovative architecture design and stable exit channels.Each listed company regards this merger and acquisition model as the first choice for scale expansion or strategic transformation.The existence of "listed company + PE" mergers and acquisitions fund is of great significance to the activeness of China's capital market and the transformation of traditional enterprises,and it is good news for the development of China's emerging industries.With the widespread adoption of this acquisition model,there has been more and more controversy over this model.Problems have also emerged with this acquisition model.Based on the perspective of a listed company,this article selected the Donghu&Everbright Industry Investment Fund as a case study and analyzed the Donghu&Everbright Industry Investment Fund from the aspects of organizational structure,financing structure,and post-investment management.In terms of organizational structure,Donghu&Everbright Industry Investment Fund selected the direct investment institutions of brokerage firms as the general partners of the fund,and the financing structure adopted structured financing.The structured financing is a special part of the Donghu&Everbright Industry Investment Fund.The advantage of adopting structured financing is to reduce the future M&A costs of the listed company.The unfavorable aspect is that it increases the financial burden of the listed company.On the basis of the analysis,the problems found in the Donghu&Everbright Industrial Investment Fund were found,such as the over-valuation of the target company,the single financing channel,information disclosure and insider trading.In conjunction with the issues identified,the article put forward development proposals from the M&A fund and regulatory level in the final part.At the level of mergers and acquisitions funds,listed companies must control the scale of appropriate financing,mergers and acquisitions funds can be phased investment to reduce the cost of mergers and acquisitions,mergers and acquisitions funds can be appropriately widened financing channels.At the regulatory level,regulators should guide listed companies to disclose information on key nodes in M&A fund operations;the government can strengthen guidance and form a form of “government + listed company + PE” to guide some of the social capital flows to key industries.Through these suggestions,we hope to promote the better development of "listed companies + PE" mergers and acquisition funds...