The Risk Analysis Of M&A Fund Of Rotary Information Acquisition Taihao Intelligence

In recent years,M&A fund in China market has developed rapidly.The scale of fund raising has also shown a warming trend.In 2019,the fund size of China’s M&A fund reached66.157 billion dollars,and there were 621 cases of listed companies using M&A fund to conduct M&A.More and more listed companies participate in the establishment of merger and acquisition fund to invest in mergers and acquisitions.This innovative operation mode of merger and acquisition fund first appeared in 2011 in China.Later,many listed companies used merger and acquisition fund to acquire target companies based on their actual situation.This new M&A model enables listed companies to target companies in advance,reduce the pressure of cash flow,accelerate the combination of capital and real economy,and improve the success rate of M&A.However,this mode is a new thing in China.Many merger and acquisition funds set up by listed companies are zombie funds without merger and acquisition investment,and the relevant laws and regulations are also strictly restricted.The listed companies are faced with great risks when using this mode,which is not conducive to the rapid development of merger and acquisition funds in China.In China,there are few research literatures on mergers and acquisitions of listed M&A funds.Combined with cases based on the operation process of m & a fund,this paper analyzes the risks encountered by listed companies using M&A fund.In recent years the rapid rise in our country,the author of this paper the listed companies involved in mergers and acquisitions fund set up M&A mode,selection of Rotary Information acquisition Taihao Intelligent acquisition funds as case study object,as the first fund is structured mergers and acquisitions of listed companies the target company,its investment M&A behavior has a certain reference value.On the basis of studying the domestic and foreign literatures related to the participation of listed companies in the establishment of merger stake funds,combined with the specific case analysis of the risks in their operating processes,it is possible to identify the risks faced by enterprises under this model,and to find that the risks are mainly credit risks and operational risks.The credit risk is mainly manifested in the forced closing of the actual controller of the listedcompany,and the operational risk mainly shows that the underlying enterprise has high valuation,insider trading,conflict of interest between partners and legal risk.Finally,the prevention suggestions for the risks existing in the case include the appropriate time to exit the merger and acquisition fund,regulate the valuation of the target company,avoid crossshareholding of listed companies,strengthen the restraint and incentive,and broaden the financing channels of mergers and acquisitions of listed companies.It is hoped that the research of this paper can provide reference for listed companies using merger and acquisition funds,so that investors can understand the risks of mergers and acquisitions funds.