Research Of Equity Investment Decision On A Education Group Of YR Capital

The adoption of the new “Law of Promoting Civilian-run Education” in November 2016 cleared the way for the educational training organizations in the non-compulsory education stage to dock with the capital market.and the education industry ushered in a great opportunity for development.There is no single Chinese education company listed on domestic stock exchange independently at present.Domestic independent initial public offering of education companies will be realized in the next few years.It is an opportunity for the placement of venture capital institutions and private equity funds.The issue of equity investment decisions on educational institutions is crucial to this,and it is also the significance of this paper.This paper focuses on the "investment" in "Fundraising,investment,management and withdrawal",and takes YR Capital Management Co.,Ltd.'s equity investment decision-making practice on the A-Education Group as its research object.And it analyzes the background,causes and status quo of the problem,which leads to the necessity of designing the equity investment decision-making practice plan.Then it elaborates the YR Capital's equity investment decision-making process and investment logic on A-Education Group,including the overall target business analysis,industry analysis,market demand analysis,driving force analysis,Competitor analysis,investor motivation,financial analysis and forecasting,etc.Then use relative valuation method to estimate the target's valuation.The solution to the problem is designed,including transaction architecture design,IPO path planning,and restricting conditions such as terms of gambling and anti-dilution clause agreement.It puts forward the key points and highlights of the scheme.Finally,the feasibility of the scheme is verified from various aspects.Cost-benefit analysis and sensitivity analysis are conducted from different exit channels.And risk warning and control strategy analysis are made to complete a set of equity investment decisions solution scheme of education group.Through the study of financial practical problem solutions in this paper,it shows the subject selection logic of private equity investment,due diligence scheme,project establishment process,investment value analysis,risk identification and control,trading scheme design and exit reward measurement.It has important reference value for venture capital institutions and private equity funds to Invest Education Group.At the same time,it also has important reference significance for the education group to regulate its own operations and to dock with the capital market.