A Case Study On The Establishment Of M&A Fund In Boya Bio Medical Company

Under the background of the global economic downturn in 2008,in order to stimulate the vitality of economic development,China introduced policies to promote the docking of financial capital and industrial entities.At this time,private equity funds developed with its unique financing advantages.Private equity funds mainly profit from the exit of investment company’s IPO.But in 2012,after the SFC increased its audit of the IPO,the IPO was essentially suspended.This makes private equity funds in the way of exit suffered greater resistance.At the same time,the SFC also issued policies to encourage private equity institutions to participate in mergers and acquisitions of listed companies.In this context,the joint establishment of industrial M&A funds by listed companies and private equity institutions has gradually emerged,which not only develops a new exit channel for private equity funds,but also responds to national policies.Since the mode of setting up industrial M&A funds by joint private equity institutions of Listed Companies in China is still in the exploratory stage compared with that of foreign capital markets,it is of great significance to perfect the operation of industrial M&A funds under this mode through the combination of theoretical analysis and case analysis.Boya company not only is representative in the biomedical manufacturing industry,but also has set up three industrial M&A funds with the controlling party Gotega Group and its subsidiaries since 2015.The successful completion of the first project M&A enables the fund to exit smoothly.Therefore,this case is representative.Based on the related research status and theoretical basis of industrial M&A fund,this paper analyzed the motivation of establishing industrial M&A fund and the actual operation of the fund.From the perspective of enterprise competitiveness,industrial chain and market value,it analyzed the effect and operational risk of establishing industrial M&A fund by Boya company,and then drew the conclusion of this paper.The research finds that the establishment of industrial M&A fund by Boya company can produce synergistic effect with project enterprises in the fund in terms of market competitiveness,improve the performance level of the company,enhance the profitability of the company,consolidate and improve the position of the industry;in terms of the layout of the industrial chain,it adds business types such asbiochemical products other than blood products,testing services and so on,and invests in the upstream of the industry.In terms of market value,outside investors have a positive attitude towards the establishment of industrial M&A fund and project enterprises within the M&A fund of Boya company,and the stock price can rise.At the same time,M&A can be carried out at a price lower than market value.Obtain the second-level market premium,and then enhance the value creation ability of enterprises,and increase the total market value.In the aspect of risk control,make full use of the advantages of investment management of the controlling party,although project selection risk,moral risk and financial risk are generated in the course of fund operation,they are all within the scope of control,and the risk degree is relatively small.Finally,according to the conclusions of this paper,we get some enlightenment,hoping to provide some references for the listed companies that intend to set up industrial M&A funds in the future.