What is M&A Fund?
M&A Fund is a fund that focuses on M&A, the target enterprise. Its investment method is to acquire the control right of the target enterprise by acquiring the equity of the target enterprise, and then sell it after a certain period of restructuring and transformation. The difference between M&A fund and other types of investment is that venture capital mainly invests in entrepreneurial enterprises, and M&A fund chooses mature enterprises; Other private equity investments are not interested in corporate control, while M&A funds want to gain control of the target enterprise. M&A funds often appear in MBO and MBI.
Simply put, M&A fund refers to the equity investment fund that mainly invests in corporate finance M&A. M&A fund invests in the stock equity of an enterprise by purchasing equity, without providing any funds for the enterprise. It is just an investment method of equity transfer, and the funds are obtained by the old shareholders who transfer the equity of the enterprise.
Operation mode of M&A fund
M&A funds are mainly divided into holding M&A funds and holding M&A funds. The former is the mainstream model of M&A funds in the United States, emphasizing the acquisition of control rights of M&A targets and leading the integration, reorganization and operation of target enterprises. The latter does not obtain the control right of the target enterprise, but assists other M&A leading parties to participate in the integration and reorganization of the target enterprise by providing debt financing or equity financing, which is the main mode of M&A fund in China at present.
Article 32 of the Regulations on the Management of Foundations stipulates that foundations shall implement a unified national accounting system, conduct accounting according to law, and establish and improve an internal accounting supervision system.