Research On The Model And Performance Of Listed Companies’ M&A Fund Establishment

M&A fund is an equity investment fund for the purpose of acquiring the controlling interest of the target company.Generally,the investment method is that the listed company acquires the right of control over the target company by acquiring the equity of the target company.After the establishment of the merger and acquisition fund,PE institutions usually get involved in the management of the target company,and exit by preferential sale to the listed company after the assets meet the agreed conditions.Generally,the target of M&A fund investment is companies that are in line with the strategic objectives of listed companies,which are used to consolidate and develop the market of the main business of listed companies or introduce upstream and downstream enterprises as dual main businesses for layout and operation,so as to enhance the core competitiveness of the company.In 2016,the listed company Xiwang Food made a cross-border merger and acquisition of Kerr,a Canadian nutritional food company,in the form of merger and acquisition fund.As a classic case of "combining small with big" in the merger and acquisition market,it has a strong reference significance.This paper analyzes and discusses the motivation,mode,performance and risk of listed companies in establishing merger and acquisition fund.Firstly,it analyzes the process of establishing merger and acquisition fund jointly by Xiwang Food and chunhua jingxi to acquire Kerr company from the aspects of fund raising,investment strategy,management strategy and exit strategy.Secondly,this case is compared with other companies in the same industry in the same period that did not adopt the method of merger and acquisition fund.It is found that the M & A fund model will reduce the financial pressure of the M & A.At the same time,professional investment institutions are introduced to deeply involve in the management of the target,so as to help listed companies to improve the m&a benefits and reduce the M&A risks.But it also has certain optimization space,this paper puts forward the corresponding improvement method.After the merger,Xiwang Food has realized diversified business strategies,increased the company’s benefits,and gradually enhanced its solvency,profitability and operating capacity.Finally,this paper summarizes the successful experience of the case,and calls on different companies to choose their own mergers and acquisitions mode according to their own situation,in order to better play the role of mergers and acquisitions for all stakeholders.