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Exploring the Market Impact of Private Equity Fund Mergers and Acquisitions of Public Companies

Author(s)

Yan Huang

Affiliation(s)

Alpha Square Group, Shenzhen, Guangdong, China

Abstract

This paper focuses on analyzing the economic benefits of the private equity fund acquisition model of public companies, discussing how this model alters the dynamics of the capital markets. The article elaborates on how private equity funds utilize their expertise and resources for corporate restructuring and enhancement through these acquisition activities. It analyzes the model from a macroeconomic perspective, emphasizing its significance in the current economic climate for capital markets. Through empirical research, the paper investigates the direct impacts of private equity fund acquisitions on public companies, including improvements in operational efficiency, financial performance, and market share expansion. Furthermore, the article examines how these acquisition activities influence shareholder value, particularly in terms of changes in long-term investment returns.

Keywords

Private Equity; Fund Acquisition; Public Companies; Model; Benefits; Capital Market

References

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