A Study On The Influencing Factors Of PE Bargaining Power:Empirical Test Of Small And Medium Family Enterprises

The investment strategy of PE(short for private equity)has changed a lot in the process of developing from small workshop into big asset management.More and more PE companies hope to be involved in small and medium enterprises of high quality earlier,which would bring long-term investment income with less capital.The obtainment of high-quality subject has become strategy emphasis of PE companies.However,the family character of small and medium enterprises conflicts with nature equity of PE.Besides,out of protecting social emotional wealth-specific asset,PE is always used as the last financing option of small and medium enterprises.Facing the exclusion of family nature and pressure from fierce competition,the study of bargaining power shows its importance.The project will take the difference among small and medium family enterprises as the logic start,then build the finance negotiating model between PE firms and small and medium family enterprises,conduct a questionnaire survey to the PE manager in Yangtze River Delta in China,finally find the factors that influence PE bargaining power by theoretical analysis and empirical test,especially the family nature.On the one hand,this research can enrich the research results of PE and family enterprise financing,On the other hand,it is significant for private equity to invest effectively.Firstly,bidder competition,expertise advantage,time pressure and affective commitment are the main factors affecting the bargaining power of PE firms.Secondly,the effect towards expertise advantage,affective commitment and the relationship to private equity bargaining power made by familial factor can be regulated dramatically.Thirdly,the effect towards bidder competition,time pressure and the relationship to private equity bargaining power made by familial factor can be partly adjusted.