Private Enterprise "backdoor Listing" An Effective Way To Explore Case Studies From The Capital Market

Due to the historical reasons, China's privately-owned economy has undergone a difficult process, from nationalization to restoration, then being supplement to the state-owned economy, and finally becoming an important part of the socialist economy. Today's privately -owned economy is progressively enhancing its status and its effect in the state sector of the economy.The party's 15th National Congress defined the private sector as one of important parts of the socialist economy, the private sector faces a great opportunity to develop. But, there still some problems remain unsolved.How to solve the existing problems in the development of the private enterprise in order to achieve its low cost and fast expansion? Looking at the merging and acquisition of companies in domestic and foreign markets, we can see that by forming an alliance with an established brand name is the best way for private enterprise to achieve such goal.This thesis discusses the above point of view in four parts.The first part views the merging and acquisition of companies and concludes that it's a necessity for the development of economy and the best way for companies to achieve rapid development. This can be used for reference in the development of private enterprise.The second part illustrates that the alliance formation is the best way for the expansion of private enterprises. Firstly, it introduces the five development stages in our country, secondly, it demonstrate the importance of the private enterprise in the state sector of the economy, thirdly, it point out the six problems caused by limiting the development of private enterprise. Finally the paper describes the concept of alliance formation and its effect. After comparing with the existing method of company expansion, the paper recommends that alliance formation is the best way for private enterprise to achieve the "low cost, fast growth" goals.The third part illustrates two cases. One successful example is by TOP Group which formed an alliance with Chuan Chang Jiang. One is Kang En Bei Group which failed. These two cases clearly demonstrate the problems of the formations. Top Group assessed their own potential and planned their strategy very carefully. They also sought the assistance and support from government bodies. This guaranteed the success of their planning, and enhanced the growth potential of the organization. Kang En Bei Group's choice was fit with it's capacities and failed to correctly analyze the potential of the alliance company. This led to their failure.The fourth part further explores the alliance formation. First the paper briefly introduces and analyzes the existing alliance formation in China, then the paper suggests different approaches in view of a few different corporation and alliance formation. The paper finally emphasizes that the formation of the alliance companies does not necessarily mean a success. It's only the beginning and still has a long way to go. There are still lots of work ahead, especially in the restructure of management, human resource management, production, resources etc.Looking at the development progress of China's private enterprise, this thesis combines domestic and overseas corporate merging , and recommends that alliance formation is the best way to solve the problems during corporation development and hence achieve the "low cost, rapid growth" in private enterprise. This thesis analyzes some classic cases to illustrate its value to be used as reference to private enterprise in China.