"Controlling Shareholder + PE" Merger And Acquisition Fund Of China Transinfo Financing Path And Risk Control

With the rapid development of China ’s capital market and the trend of industrial structure optimization and upgrading,mergers and acquisitions are becoming more and more active,which leads to a series of new financing methods for mergers and acquisitions.The introduction of PE into listed companies to establish merger and acquisition funds is a new type of merger financing,it is necessary to study relevant risks,prevention and control measure.In this paper,the“controlling shareholder+PE" merger and acquisition funds as the research object,analysis of listed companies to introduce such merger and acquisition funds on mergers and acquisitions financing,financing risk,risk prevention and control.This paper summarizes the general mode of ’ controlling shareholder+PE’ merger and acquisition funds established and operated in the current market.Also,selects and analyzes one of the representative cases-China Transinfo set up the ’ controlling shareholder+PE"type merger and acquisition fund merger Uniview.Through analyzing the financing path of China Transinfo mergers and acquisitions,the purpose of introducing mergers and acquisitions funds,the possible risks in mergers and acquisitions transactions,and combining theory with practice,putting forward countermeasures on how to prevent and control risks.It is found that the establishment of mergers and acquisitions funds initiated by controlling shareholders of listed companies can not only access to merger and acquisition funds,but also disperse the leverage ratio of listed companies;If the controlling shareholder introduces the financial PE to establish the merger fund or can master the power to deal with important matters through the organizational arrangement of the merger fund,it can help the controlling shareholder further stabilize its control right;At the same time,the addition of PE makes the merger fund have strong investment management ability,and can alleviate the psychological impact of the manager stake in the acquired enterprise.However,the "controlling shareholder+PE" mergers and acquisitions fund was established primarily for a particular merger and acquisition,didn’t form the long-term cooperation,the investment and management ability of PE also has not been fully developed.Through summarizing the general mode of "controlling shareholder+PE"" mergers and acquisitions funds,this paper makes an in-depth analysis of individual cases,and puts forward some suggestions for the listed companies to pay attention to when using this mode of mergers and acquisitions fund for mergers and acquisitions financing,so as to provide reference for the optimization of mergers and acquisitions fund in the future.