The mode of launching M&A fund
1. Exit from merger and acquisition of listed companies
Under the mode of "listed company +PE" setting up M&A fund, M&A exit refers to the exit mode realized by listed companies after PE institutions select and successfully incubate investment target enterprises.
2. Initial public offering (IPO)
Generally speaking, listing through IPO is the most ideal exit method for PE investment, and the capital premium function of the capital market will bring rich returns to investment. In the past, PE's exit channel was mainly IPO because of its high return.
3. Withdraw from third-party mergers and acquisitions
After cultivating the target, PE institutions are likely to be favored by third parties other than listed companies and take the initiative to make acquisitions. This way, like mergers and acquisitions of listed companies, belongs to the exit of mergers and acquisitions. With the active bidding of external institutions, it can generally obtain better expected annualized expected returns.
4. Transfer by agreement
Agreement transfer is similar to the third party M&A, but the difference is that the third party M&A is the buyer's active behavior, while the agreement transfer is the passive behavior of PE institutions looking for the buyer. In these two cases, the valuation of the subject matter for sale will be different.
5. Share repurchase of the acquired enterprise
Share repurchase of the acquired enterprise refers to the way that the enterprise or company manager acquired by PE buys back the shares of the enterprise at the agreed price, thus making the private equity investment fund withdraw.