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Feasibility Research On Equity Investment In Company A By SH Fund

Posted on:2022-11-24Degree:MasterType:Thesis
Country:ChinaCandidate:X L LiuFull Text:PDF
GTID:2492306764481074Subject:FINANCE
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After the development of over three decades,private equity funds have become widely known in China.Apart from flexible investment methods,private equity funds fully empower invested companies in terms of technology,marketing and management through resource integration.At present,equity financing is well received by S&M enterprises in China and recognized as a crucial means of financing.However,the country’s private equity investors vary in their development,especially since the "new rules on capital management" and the "registration system".There is an obvious "80/20effect" in the private equity investment market,with the concentration of funds and projects to head institutions.Due to the absence of a sound investment decision-making system,S&M private equity investors blindly follow suit and overlook investment analysis.As a result,they frequently fail and many risk being disqualified as managers.Hence,S&M private equity investors are required to emphasize the fundamentals,attach importance to investment analysis and adopt a path that suits their circumstances.In light of existing research findings and the status quo of China’s private equity market,this paper selects SH fund as the research object to study its project investment.Paper first introduces the background and investment preferences of the Fund’s shareholders,This is followed by a detailed analysis of the investment feasibility of Project A,including the fundamentals of A company,of the overall industry environment,SWOT analysis,market position and financial data analysis.lastly,the prediction based on financial data uses FCFF model and PE model to value Company A.In addition,the SH fund investment income is estimated,sorting out the highlights and risks of investment A company.Finally,the article concludes that the track selected by the company meet the national industrial policy,the development strategy meets the market demand,and the company is leading in equipment and technology,and with strong support of its parent company,the company’s performance is in rapid releasing period,growth certainty is high,the valuation is reasonable,the expected return also meets the requirements of the SH fund,suggestion is to invest in A company.This paper has certain reference significance for other small and medium-sized private equity investment institutions to improve the investment decision-making system and improve the comprehensive analysis of investment projects,so as to improve the success rate.
Keywords/Search Tags:Private equity investment, Investment decision-making, SWOT analysis, FCFF model valuation
PDF Full Text Request
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