Analysis On The Motivation And Consequences Of The Equity Carve-outs Based On The Perspective Of Parent Company-

For a long time,most enterprises have expanded their scale through diversified development to achieve the enhancement of company value.However,the unreasonable diversification strategy of some enterprises has caused a series of problems in the company's operation.At this time,the equity carve-out as a means for the diversified enterprise to modify the business strategy has attracted widespread attention in the practical and academic circles.In mature foreign capital markets,it is extremely common for diversified companies to carry out equity carve-outs.However,successful cases of equity carve-outs did not appear in our country until after the establishment of the GEM.Therefore,the study of this case will not only help improve the equity carve-out model and implementation rules in our country's capital market,but also provide reference value for companies that intend to carry out equity carve-outs on GEM or Science and Technology innovation Board.In this thesis,a case study method is used to conduct an in-depth study on Conba carve out Jolly pharmaceutical to GEM.When the author analyzed the specific reasons for Conba carve out Jolly pharmaceutical,it found that:Conba's unrelated diversified mergers and acquisitions of Jolly pharmaceutical in the course of diversified development are the main reasons for its carve-out of subsidiary.At the same time,based on the policy background of the equity carve-out on the GEM,other motivations for carve-out are obtained.In addition,when studying the economic consequences of the equity carve-out,this thesis mainly analyzes the changes in the performance of Conba companies before and after the equity carve-out.Finally,based on the case study of the equity carve-out of GEM,this thesis affirmed the prospect of equity carve-outs in the future market of Science and Technology innovation Board,and made corresponding suggestions for situations that may affect the development of the enterprise and market demand.The author finds that:Firstly,the equity carve-out on the GEM can help the parent company obtain excess investment income,but it will generate less investment income than the direct carve-out.Secondly,The equity carve-out can meet the short-term financing needs of the parent company and enhance the short-term solvency of Conba.Thirdly,The equity carve-out is difficult to improve the short-term market performance of the parent company,investors are generally skeptical about the equity carve-out.Fourthly,The equity carve-out failed to effectively improve the long-term operating performance of the parent company,and the parent and subsidiary companies should adjust their development strategies in a timely manner after the equity carve-out to achieve long-term value creation.