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On the corporate investment exit channel analysis

Author: LiuJuan From: www.yourpaper.net Posted: 2010-06-22 23:31:46 Read:
[Paper Keywords] Capital Exit the stock market liquidation
[Abstract] In recent years, the venture capital exit channels are sluggish corporate development in China are severely constrained. The investment exit channel, a deeper look into a variety of investment out of the way and their pros and cons, optimize the investment exit channel.
I. Introduction
The risk of an investment in the spray is a chase high-margin, high-return financial capital. Risk investments, the sale of equity capital gains is the fundamental purpose and motivation, is also a Venture Capital smooth necessary condition for development. How to ensure the success of the return on investment successfully recovered as soon as possible out of the body from bad investments humble, venture capital crucial. The beginning of the investment, venture capitalists began to consider a reasonable exit strategy, as it relates to the entire investment of the proceeds of the investment success of. Venture capital ultimate goal is to promote the rapid growth of new enterprises in the short term, and with the reported higher investment at the right time, cash out, and then convert the funds to other enterprises or projects to continue to the next round of investment. Venture capital exit channel selection is not good, will bring huge losses to the enterprise, and affect the implementation of new investment juice plan. Therefore, in practice, combined with China's national conditions and the enterprise's own specific circumstances, a reasonable choice of investment exit channel. Below will often several investment exit channel system and in-depth research, in order to be able to provide some suggestions on China's enterprises to invest.
venture capital pros and cons of the various exit channels
1, listed companies overseas or in the second board market in Hong Kong Spin-off
The spin-off company has been listed on the Main Board of the existing assets spin-off, or to transform its holding in the form of venture capital enterprises, listed in the soon to be opened - Market capital operation. Through a spin-off of a subsidiary set capital from external sources of capital are no longer confined to the parent ... channels; spin-off makes the management personnel of the subsidiaries bear the primary responsibility for the financial and investment decisions, give full play to their potential and mining passionate about their work; through the spin-off, you can retain scarce talent for business development; through the spin-off, most of the decision-making of the investment, research and development and asset acquisition expenses is transferred to the spin-off of a subsidiary of processing, greatly increase the company's capital and research spending from capital investment of great value; decision-making may lose market opportunities in the rapidly changing economic and technological environment, rely on centralized and hierarchical organization, and the spin-off is based on spin-off decision-making, especially in the decision-making of investments and the purchase of assets, decentralized decision-making has its unique benefits. For overseas or in Hong Kong, the second board market and public companies in overseas or second board market split City both risk tl: after the listing of the start-ups, require regular disclosure of a lot of internal information, the competitors of its operating become better condition; enterprise performance decline, investors will be eager to sell stocks, making the stock all the way down F.
2, backdoor listing and backdoor listing
RTO is the non-listed companies through the stock market acquisition of shares of listed companies, listed companies through a variety of ways to inject their own assets and operations from the dark control L, reaching indirect purpose of listing and venture capital from the capital market to gradually withdraw. The backdoor listing City, the parent company with the listed companies has their own high-quality assets into the listed company through the reorganization of assets and the progressive realization of the purpose of group companies of the overall market, and venture capital exit from the capital market. The advantages of doing so is a L City market can bypass the public to L City's various requirements, and asked then to achieve the purpose of listing. However, this approach is also given problems and risks. On one hand, this approach requires risk enterprises have a lot of money and a strong capital operation ability and has the risk of anti-takeover. Other ... aspects of China's capital market is not sufficient shell resource is the shell resource are the operational difficulties of listed companies, to buy or backdoor listing of new shares can not be immediately banished, so that enterprises should assume improved E assets responsibility.
3, M & A exit
M & A exit recover the investment capital through mergers and acquisitions by another enterprise start-ups in this way is relatively convenient. This method can make the investment interests of both parties are guaranteed to increase the flexibility and attractiveness of the exit way. But there are some risks.
First, M & A exits in addition to the income is lower than the open I =. Outside the city, the management of the start-ups will be set up obstacles to enterprise lost its independence. Secondly, if the acquisition is equity and equity exchange, income changes in the stock exchange after the sale, and the actual gain will be subject to the effects of fluctuations in the stock market price, if enough other mixed exchange options, Wen Yi complexity of the structure sexual risk will face a variety of different investment risks.
4, repurchase
_ "To avoid Wen Ji purchase will lose the independence of the company, ten cattle production start-ups the right to repurchase this fat fed quickly. GEN II, enterprises 1LF, with the purchase of a: First, management buyouts. Management of entrepreneurial enterprises by financing type part of the equity of the venture capital acquisition pry held after the completion of the acquisition, the company management and H Shu Seoul all. member: acquisitions. Venture's employees will be part of the shares acquired venture capital the promise held generally in the operation to the formation of an Employee Stock Ownership Fund as a source of funds for the acquisition. Second, the management and shellfish l: acquisitions. The management and staff: l jointly funded venture capital part of the shares acquired and held. Risk capital gains back by several secondary old share, irrigation NJ _ but also to avoid the venture capital exit to the industry too much influence.
5 liquidation exit
Liquidation exit loss including loss liquidation and bow to the cancellation of two type. The advantage is resistance the I Bu loss progressive expansion and capital inefficient operations. Its insurance performance larvae F: item had failed to give investors a small negative growth in revenue, the liquidation of the industry and there is a cost, and time-consuming, these risk investors will feel worse.
, venture capital exit channels reasonable choice
Four venture capital exit ways have advantages and disadvantages, but are required to forward a further refinement, the assessment on this basis, constantly expanding. _c = j = investment retire channels. With the current capital markets and referral LII specific circumstances, mainly from the following aspects of selection and improvement.
1 reasonable choice of investment channels
(1) stock market [City. Stock market risk investment institutions through risk enterprise deposit and high-tech enterprises, pull the block male liver listed equity assets into venture capital institutions have the right to public leisure, recognized by the market, changed hands in order to achieve the high broadcast exit way. Stock market instrument for the risk of small-scale high-growth enterprises 1JF the City finance effective way, and also levy a certain dispersion r investment risk, high return exit conditions. High-tech enterprises in the sector. Bu standard are usually low compared to the first plate market, tax, legal incentives, regulatory system, accounting principles, information disclosure requirements are different, the equity transfer locked relaxed. However, when the risk enterprises City, venture capital firms usually only sold extremely d'l: L Example shares only after a period of time to determine that the venture capital institutions can be red sold all your shares will be held in the securities market. This means that venture capital firms, even after the successful listing of the risk enterprises, but also bear the revenue can not be realized or delay in the realization of the risk. J. FLJ'b stock market compared with the other out of the way, conditions, high cost, long cycle and involve legal, accounting and other issues, too heavy a burden for small businesses, is not feasible.
(2) for sale. Sales are venture capital organizations to be conduct for the transfer of the entire equity interest of holding risky enterprise. Compared with the listing on the stock market, negotiations risk investment institutions to sell equity at risk is relatively simple, without the face of the whole market open to question, but only a handful of buyers on the market, the cost of cheaper procedures also relatively simple, fast cash recovery and recycling have a lower risk, and the risk has a very strong interest in the sold objects, methods and timing flexibility for a variety of different sizes and different types of enterprises. In the sale process, the Government should make greater efforts to cultivate the property rights trading market. First, speed up the reform of property rights, the establishment of clear property rights and market players, improve the protection of intellectual property rights, property ownership of clear scientific and technological achievements. Second, improve the the regional technical property market, the close integration of scientific and technological achievements and venture capital to build a good trading platform, improve the efficiency of transactions of property rights, reduce transaction costs, access to capital early support for the commercialization and industrialization of high-tech achievements. Again, standardized structure of listed companies, and constantly improve the operating efficiency of listed companies, to further improve the system of transfer of shares of the listed companies.
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