Exploring the Impact of Private Equity Investment on Corporate Performance: A Case Study Pharmablock

Abstract

Reasonable use of private equity investment not only effectively solves the problem of corporate funds, but also rapidly enhances the expansion of enterprises; Equity participation in enterprise management and decision-making can also make the development of enterprises more scientific and efficient. However, private equity investment also has the attribute of a "double-edged sword", such as excessive participation in internal business operations and the timing of exiting equity, which greatly affect the decision-making direction and debt stability of enterprises. This article takes Nanjing Pharmablock Co., Ltd., hereinafter referred to as "Pharmablock", as an example. By interpreting the process of private equity investment and investment, it studies the changes in the company's financial indicators such as profitability, debt repayment ability, and development ability, interprets the impact of private equity investment on enterprises, and ultimately identifies relevant issues and proposes corresponding suggestions.