Group 1 - The core viewpoint of the discussions at the closed-door seminar "M&A Breakdown: Investment and Exit Games in the Era of Stock" highlights a shift in focus from due diligence and transaction design to litigation and dispute resolution in the M&A landscape since 2018 [1] - The investment in distressed asset funds has been a notable area of growth since 2018, with successful outcomes in property rights investment, debt investment, and bankruptcy restructuring [1] - Recent M&A activities have predominantly concentrated in sectors such as semiconductors, biomedicine, artificial intelligence, and new energy vehicles, which present valuation complexities due to their reliance on patents and R&D outcomes without immediate revenue generation [1] Group 2 - Traditional market methods like PE, PB, and PS are less applicable for early-stage valuations of companies in these sectors, leading to the adoption of alternative metrics such as equity value to GMV and equity value to R&D expenses [2] - For biomedicine companies, valuation methods must adapt to different R&D stages, utilizing techniques like binomial tree models or Monte Carlo simulations to meet listing requirements [2] - Cross-border M&A transactions, particularly involving A+H share companies with state-owned backgrounds, face significant operational challenges due to the need for triple regulatory approvals, highlighting the critical role of valuation firms in navigating these complexities [2]

Core Insights - The closed-door seminar titled "Breaking the Deadlock in Mergers and Acquisitions: The Investment and Exit Game in the Era of Stock" was successfully held in Beijing, gathering over 50 guests from government investment funds, industrial capital, GP/LP, and intermediary institutions to discuss policy trends, opportunities, challenges, and practical experiences in the M&A market [1] Group 1: M&A Market Trends - Prior to 2018, the focus of legal services for fund companies was primarily on due diligence, transaction design, and contract-related areas. Post-2018, the emphasis has shifted towards litigation, including handling of betting disputes, overseas asset recovery, and anti-fraud investigations of corporate controlling shareholders [1] - The reduction in litigation cases and the return of due diligence and transaction-related business suggest a potential transition from the stock era's investment and exit game to a new growth era [1] Group 2: Investment in Non-Performing Assets - A noteworthy area of focus is the investment fund business for non-performing assets, which has been actively participated in since 2018. This includes investments in property rights, debt, and bankruptcy restructuring, achieving commendable results in both returns and scale over the years [1]