Factors Influencing Performance of Private Equity Investment Funds Exit Through Mergers and Acquisitions

Using data from 2009 to 2019, this article examines exits through mergers and acquisitions (M&A) of Chinese private equity to explore factors affecting the return of M&A exit. The result suggests a U-shaped relationship between investment duration and M&A exit performance. Additionally, M&A exit performance is significantly higher in high-tech industry, with PE showing higher performance than VC. Regionally, investing in economically developed areas significantly improves M&A performance. To analyze factors affecting M&A exit performance, such as duration, region, and industry, we develop an empirical research and provides suggestions on improving exit efficiency and supporting M&A exit.