Dissertation > Excellent graduate degree dissertation topics show

Private Equity Financing of X Fine Chemical Co., Ltd.

Author: WuZuo
Tutor: LanFaQin
School: East China Normal University
Course: Business Administration
Keywords: Private equity financing Business Valuation SMEs Difficulties in financing
CLC: F426.7
Type: Master's thesis
Year: 2011
Downloads: 32
Quote: 0
Read: Download Dissertation

Abstract


In a very long time, the bank credit is the main financing channels in our society. But now, with the tightening of monetary policy, deposit reserve ratio of large financial institutions has risen to a record of 21%. Bank loans can no longer meet the needs of enterprise development. It is increasingly important to expand the financing channels Especially for SMEs. Private equity financing has become the preferred mode of financing for our SMEs.X Fine Chemical Co., Ltd. was established in 2005. It is a Private SMEs. It provides services of R&D productions, sales of organic, inorganic chemicals, fine chemicals and polymer chemicals technical. The Companies registered is more than 25 million yuan. The company has three polyacrylamide(PAM)production lines. To face of development opportunities, the company’s managements decide to use a lot of money to expand production capacity.But the company is shortage of funds. One hand, the company has been difficult to obtain loans from banks as a small and medium private enterprises. The other hand, China is currently in the interest rate cycle. The cost of capital from banks and other corporate sources is higher than direct financing. It is not conducive to the operation of the project. The private equity financing introducing strategic investors through non-market orientation, can not only provide funds for the company, but also help regulate the internal governance and promote the healthy development of the company and provide support the resources of private equity investors outside the capital, such as customers, marketing channels, technical experience and so on. Therefore, the management of company decides to introduce private equity investors to increase their investment in order to solve the company’s financial bottlenecks.In this papers we develop a feasible financing for the company that based on the company’s actual situation. The company has been expected to invest 380 million yuan for expansion project. After estimating value, the pre-investment valuation of the company is 490 million yuan. Company decided to raise 210 million yuan through equity financing which accounted for 30% of shares. The remaining funds obtained through bank loans.

Related Dissertations

  1. The introduction of the value of social responsibility Hu corporate valuation method,F224
  2. A Study on Encentive Effects of Private SMEs’Key Employees,F276.5
  3. Improve the Small and Medium-sized Enterprises Credit Risk Rating System of Commercial Bank,F832.4
  4. Research on the Factors of Credit Constraints for SMEs Based on Internal Perspective,F832.4
  5. Study on Issues and Countermeasures of Small & Medium Enterprise during the Period from OEM to OBM,F276.3
  6. The Research of Financing System for Innovative SMEs,F276.3
  7. Research on the Relationship between Government Arrangement and SMEs Finance in the Perspective of Commercial Banking,F276.3
  8. The Analysis about Development of Foshan Ceramic Enterprises in Post-Financial Crisis Era,F426.71
  9. Research on the General Form of Product Development Model,TB472
  10. Research on Credit Evaluation of Smes Based on Logistics Financing Service,F252;F832.2
  11. Turkish SMEs in the European patent system, the role of the integration process,G306
  12. Wuhan private SME financing difficulties and Countermeasures,F276.3
  13. The context of the financial crisis financing difficulties of SMEs in China and Countermeasures,F276.3
  14. Commercial Bank Risk Evaluation System of SMEs,F832.4;F224
  15. The Analysis on Financial Channels of Guangxi SMEs Based on Pecking Order Theory,F276.3
  16. Guizhou Province landing GEM Financing SME Research,F276.3
  17. RFID Information Sharing in Supply Chain and Business Valuation Research,F224
  18. Orders for manufacturing SMEs Project Management Method,F425
  19. Small electronics manufacturing ERP system design and implementation,TP311.52
  20. SME participation in the main core of the collection annuity plan Game Study,F276.3;F224.32

CLC: > Economic > Fiscal, monetary > Finance, banking > China's financial,banking > Financial market
© 2012 www.DissertationTopic.Net  Mobile