Private Equity Investment Fund Project Selection And Valuation Case Analysis

The purpose of private equity investment is to invest in the equity of unlisted companies to earn the time value difference of the company.It is to raise funds through non-public means to solve the problem of financing difficulties for SMEs and make the development of SMEs more standardized.Private equity investment is an emerging investment method.Compared with traditional investment methods,it is characterized by high risk,poor liquidity,and highly asymmetric information.Therefore,when selecting an investment company,detailed investigation and accurate assessment are required Domestic private equity investment research is more of a review of foreign private equity investment theories in China.There is a lack of research on local theory and practice,and there is a lack of how to invest,what kind of investment processes and investment decisions are made.In recent years,due to the implementation and development of policies such as innovation and entrepreneurship and the concept of "mass entrepreneurship and innovation",domestic private equity investment market fundraising has achieved unprecedented development in number and scale.Therefore,private equity investment companies are more professional,and project selection is more precise is the current problem facing private equity investment companies.At the same time,standardizing the operation of SMEs has become the key to achieving a win-win situation for both.In view of this,this article takes S company 's private equity investment project as an example,analyzes the factors that the investment company considers when facing the company 's financing plan,and finally uses the price-earnings ratio method to estimate the company 's corporate value to verify the investment company's investment decision Is it feasibleThis article aims to point out through case analysis that the main considerations of private equity investment companies in project selection and valuation are:enterprise growth,industry development prospects,enterprise investment value and confirmation of valuation methods.In the end,this article provides some suggestions for private equity investment companies.One is to improve the professionalism of the equity investment team;the second is to choose a reasonable and appropriate exit method before the project decision;the third is to choose a suitable valuation method based on corporate information;Post-investment management;Fifth,improve the relevant policies and laws and regulations of the private equity investment industry.