The Research Of DC Landscape Design Company’s Equity Financing Project

Corporate financing decision is a very important part of financial management, which also working throughout corporate life, and equity financing is a significant element of it. China lacks guidance of the financing practice for SMEs and mostly based on the macro-policy level. Therefore, the importance of a viable business development plan and the research of financing decisions are obvious. In recent years, because of national policies and economic development, there are higher requirements for environment and life living environment. In this context, landscaping industry is developing rapidly, and as a ring on the landscaping industry chain, landscape design industry benefits greatly. Many companies are facing the challenge of strategic transformation in this sunrise industry. And financing decision-making is a pillar of this kind of strategic layout, at the meanwhile, financing decision plays an important roll in it.DC is a typical landscape design company which has the need for strategic adjustment, with the change of the external environment. This strategic transformation needs money to support,so the DC company faces the financing decision. Therefore, this paper selects DC landscape design company, by using the method of literature research and case studies to research the equity financing problem in landscape design industry. Firstly, this paper introduces relevant concepts and theories------Pecking Order Theory and Life Cycle Theory. And compare creditor’s rights financing with equity financing according to the division of capital property, consider that equity financing is better than creditor’s rights financing in flexibility and adaptability. So SMEs which are in growth period can choose equity financing to meet the demand for money. Secondly, this paper imports the case company------DC landscape design company, introduces the basic information and future development strategies of it, in order to achieve this strategy, DC needs facing financing problem. Combing theory and the actual situation of the DC, analyze the options of financing modes and consider the last two more matching with DC strategies. Thirdly, according to the financing options states problem, make a DC company’s equity financing project. A comparison between the ways of venture capital and several listed financing, these ways are feasible, and through the present situation of the DC the GEM listing financing more suitable than the others. After doing the financial analysis through the comparison with the analogy company, combining case company’s financial index with relevant indexes, then estimate the price range of IPO and the scale.The final conclusion is that listing financing through GEM suits DC company best in current stage, which could satisfy its requirements in capital and other fields. And propose both possible financial problems and solutions before listing. The discussion of DC company’s equity financing, not only provides reference for financial decisions, but also give out example to other landscape design companies. Through the case research, we should know that when a company is making financial decision, the decision maker must consider industry development firstly, then make the decision which based on company’s situation and obey the strategic layout as well. The risk and feasibility of financing, and the influence it may bring, you should not ignore them when you have already considered the cost and process of financing before you choose the financing mode.