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The third stage is from the end of the transaction to the exit

After the acquisition, PE gained control of the company and a key seat on the board of directors. Since then, PE will be committed to improving the core competitiveness and market position of the acquired enterprises through various means, as well as considering exit at an appropriate time to achieve investment returns.

1. Set up the project coordination team and take full charge of the planning and implementation of post-acquisition integration;

2. Hire and appoint excellent CEO and CFO to the acquired company, and work with the management of the original company to take charge of the daily management of the company and ensure the smooth operation of the company;

3. Help the new management to improve and implement the proposed development strategy;

4. Help enterprises to integrate resources in the industry, including finding acquisition targets that can produce synergies, introducing human resources, strengthening contacts with major suppliers and customers, etc.;

5. Help enterprises open up overseas channels and enter overseas markets;

6. Plan and implement exit plan according to market conditions.

The project primary is the PE discovery investment opportunity process. This process includes two aspects:

First, there are enough projects to be screened.

Second, select the target companies that meet the investment standard by economic method.

1. Project source

People or companies that provide project information for PE are called project intermediaries. Project intermediary including those with a large number of customer relationship of law (firm), accounting (firm), consulting firms, investment Banks, trade associations, including those with extensive personal relationships. In some cases, particularly in the case of united children, the same industry can be a source of projects. PE will actively expand project sources, such as take part in all kinds of exhibitions, various forms of investment and financing projects symposium, and take the initiative to contact the local property rights trading center, institutions such as investment promotion office.

2. Market research

The development phase of the project is divided into the creation, early stage, growth and maturity stage. PE tends to invest in the next two stages; In each case, PE will also consider investing in and founding and early-stage enterprises, but entrepreneurs must have extensive experience and good management skills.

The first is market research. The job of industry research is to precisely define the main business of the target company. From large industries to sub-sectors, to business models/profit models, and even target customers; Through the analysis of industry chain, market capacity, industry cycle, technology trend, competition pattern and policy influence, PE gained a preliminary understanding of the target company.

In charge of the national bureau of statistics, industry sector, professional electronic databases, industry associations and industry experts are industry data sources, such as the Internet, books and periodicals, newspapers, phone call, business meeting, is access to information or tools such as exhibition.

3. Company research

The purpose of the company's research is:

1. Verify the authenticity of the business information stated in the business plan of the target company;

2. Understand the content of the business plan that is not described or cannot be expressed through the business plan, such as the production process and the mental outlook of employees;

3. Find out the main problems existing in the current operation of the target company, and whether to solve these problems will be an important basis for early investment decisions of PE.

These problems include not only technical aspects, but also tax, legal and property relations. To improve the understanding of the industry and re-evaluate the future development strategy and market positioning of enterprises; In close contact with the target company's management, management of personality, values, management concept, experience and ability, through the establishment of mutual understanding and trust, communication and to exchange views on matters such as investment and equity ratio.

4. Investment memorandum

The investment memorandum integrates all the valid information of business plan, industry research and company research. The following information should be reflected in the investment memorandum:

1. Target company: development history, main business, management, financing structure, market position;

2. Investment highlights;

3. Industry overview: historical data and forecasts of market capacity, cyclical and seasonal, price trends of products or services, policy shocks, market drivers and constraints;

4. Competition pattern: porter's "five forces analysis model" ranked top 10 in competition;

5. Key points of financial information;

6. Financial risks;

7. Recommendation: abandon the project or request the investment committee to conduct due diligence.

5. List of terms

Namely, the list of equity investment clauses is the principle agreement between PE and business owners on the future investment exchange. The agreement in terms of listing the PE valuation and plan of the invested enterprise investment amount, also includes the invested enterprise should bear the main duty and PE for the main power, and the premise of investment deals, etc.