A Study On The Path Selection Issue Of Equity Carve-outs And The Financial Evaluation Of The Haidilao Group

Equity carve-outs is referred to as ECOs,its definition is that the parent firms sell part of their subsidiaries' ownership through the IPO of their subsidiaries,seen in the time when the enterprises adopt enterprises' shrinking capital operations.Equity carve-outs as a common value management method in the international capital market is also received much attention in our country.Especially catering industry exists many problems such as the strong commodity homogeneity,the financial system defect,so that the catering industry can't list overall easily(currently there are only three catering enterprises in nearly 3000 a-share listed companies),but equity carve-outs can offer catering enterprises a listed financing way.Therefore,the article analyzes the effect factors of the equity carve-outs' path selection issues and the financial evaluation of the HaiDiLao group,and serves as a reference for catering enterprises' IPO and other enterprises' equity carve-outs' path selection.First,The article studies the current situation and the path selection issue of the equity carve-outs,combining the relevant research results and related theories about equity carve-outs.Second,the article uses the single case method,deeply analyzes the development situation and financial status of the HaiDiLao group and the current macroeconomic situation of capital market and catering industry.When the HD group chooses the path of equity carve-outs,its effect factors includes the following two aspects:(1)the internal cause,including the shortage of funds of enterprises,domestic market saturation,the management incentive problem,tax issue problem.(2)the external cause,including the industry factors and the policy factors.Finally,the article analyzes the financial data and capital market data of YIHAI LTD.,and gives the inspiration for the route of listing of catering enterprises and other enterprises.The main conclusions of the article are as follows:(1)the catering enterprises hardly totally list,equity carve-outs can solve the problem of financing issue in the catering industry.(2)the method of equity carve-outs listing abroad and building the red chip architecture can hedge the risks of policy factors,and solve the related problems about the development of the enterprise strategy.Finally,the article gets the following enlightenment:due to the birth defect in the financial aspect of catering enterprises,catering enterprises can't get exogenous financing easily.So in order to make the future listing road of the catering enterprises more unobstructed,the first thing is standardizing their operation,financial system,etc.,then early planning their own financing.Finally the government should support in policy.For example,changing the audit system to the registration system,strengthening the post-marketing surveillance and designing different listing indicators for different industries,etc.