Regarding the profit model of M&A Fund, Hong Tao concluded: First, some target land assets can be packaged and acquired through debt restructuring, debt restructuring, bankruptcy restructuring and management upgrading, and then other assets can be integrated to upgrade the industry again, and then the income can be realized through mergers and acquisitions. For example, General Motors has filed for bankruptcy protection, and M&A Fund has been listed again in various ways. M&A fund may not necessarily not participate in IPO, but it can be combined with privatization and IPO.
Second, the Hony model. For example, the acquisition of a glass enterprise in Jiangsu, the integration of six or seven other glass enterprises, and then packaging for china glass overseas listing, the overall revenue increased by about 7- 10 times, because of holding reasons, Hony Capital invested a lot of money and earned a lot of money.
Third, Sany Heavy Industry joined hands with CITIC Industrial Fund to acquire the entire equity of Putzmeister, a German concrete pump manufacturer. In fact, it is a leveraged buyout. In this process, M&A funds are supported to participate and assist, and may also be provided to bridge financing under Sany Heavy Industry, and then some M&A loans are arranged for acquisition. After the acquisition, it holds a certain equity, but the total assets owned by this equity are relatively large. Because of the high-debt acquisition, it can be absorbed and merged into the name of Sany Heavy Industry listed company through the integration of debt issuance and bridge management in the future. CITIC Industrial Fund has achieved a complete process of re-entry, which is the mode of CITIC Industrial Fund.
Fourth, like the backdoor of mergers and acquisitions made by CCB International, before the backdoor, the assets are invested in the asset side, and then injected into the listed company, because the backdoor assets are often relatively large, and hundreds of millions are invested to earn relative income and make money by the price difference in the secondary stock market. If the shares are relatively large, they can help listed companies to integrate in the future and continue to load assets to realize income. This method can also be classified as the investment method of M&A fund, but it is between PE-IPO fund and M&A fund.
Fifthly, M&A funds can purchase some assets, which may not necessarily be listed in IPO through their own integration, but may be transferred to listed companies in the future, or become minority shareholders of listed companies by issuing shares to purchase assets, that is, employee shareholders, which is equivalent to transferring assets and exchanging shares after stock exchange, but it does not necessarily constitute reverse mergers and acquisitions to become major shareholders of listed companies. In the future, this method will be very common, and there will be many M&A funds.
Sixth, M&A sniper mode, such as Carl Celian Icahn, known as the Wall Street sniper. His classic cases in those years, such as AOL and time warner Inc., he bought shares of listed companies through continuous secondary market acquisition, holding more than 3%, so he may try to become a director of listed companies. In this case, he kept lobbying for separation or company reorganization to further raise the stock price. I hope that the value of the company can be continuously released or the management can be improved, and the stock price can go up in the future, so that he can quit after holding it for many years, which is also a way to obtain funds. Carl Celian Icahn also did something related. For example, Microsoft once acquired Yahoo. He hopes to buy Yahoo shares first, then enter Yahoo's board of directors, and then make an offer to Microsoft. In the international market, the general stock prices are relatively low, most of the valuations are at a reasonable level, and some even have a price-earnings ratio of several times to ten times. It is possible that the tender offer is even 65,438+000% higher than the market price. In this case, if the sniper fund accepts the quotation or transfers cash on the basis of higher price, there can be more arbitrage space, and there are many such ways abroad.