Research On The Risks And Way Of Backdoor Listing Of The Education And Training Industry

The education and training industry is a rising industry strongly supported by the country.The relevant ministries and commissions have issued a series of laws and regulations and industrial policies to support the development of the education and training industry.The amendment and perfection of non-governmental educational promotion law have promoted the private capital to enter the education industry.The market scale of non-academic vocational education is expanding,and the development prospect is broad.The education and training industry has entered a period of rapid development and the market scale is growing rapidly.However,the teaching quality and service level of various training institutions are uneven,and the homogenization competition is serious.The opportunity of industry integration will emerge.At present,there are two ways to go public: IPO and RTO.Due to the particularity of the education and training industry and the urgency of listing,the company in combination with its own financial status,will choose the more rapid and efficient way---RTO.Different from IPO,the enterprises to be listed not only need to adjust their own business,but also need to choose a suitable shell company to avoid the risk of information asymmetry.However,the whole restructuring process involves many links and the participants.The enterprises are not only faced with various risks such as the high transaction cost and the difficulty in the audit of the CSRC,but also handle with many uncertainties in the integration and subsequent refinancing.It is worth discussing how education and training enterprises can successfully go public,avoid the risk of restructuring and lay a good foundation for long-term development after restructuring.In this paper,according to the sequence of RTO process,combined with key audit points and relevant accounting principles,the risks prone to occur in important links of RTO process were sorted out,and typical cases were used to explain how to identify and deal with the risk in the restructuring.Finally,suggestions for risk avoidance and response were summarized.Firstly,the thesis reviews the domestic and overseas theory references about RTO,and induces and concludes some related references.Meanwhile,some basic concepts and theories of RTO are being clarified.Secondly,it points out high risks in the current situation of RTO.Then,in respect to these risks,it proposes a series of measures to solve them by analyzing typical cases in the same industry.Finally,combined with the risk points in the two cases,it puts forward suggestions that can be used by education and training companies.The following conclusions are being reached: firstly,restructuring side should make full use of favorable policies to sort out the scope of assets to be injected in advance,divest private non-profit schools and adjust the equity structure.Secondly,when choosing a shell company,restructuring side should,in addition to hiring reliable intermediaries,also choose the right motive and choose carefully,refusing to reorganize listed companies that frequently and repeatedly fail,and avoid falling into a reorganization.Thirdly,restructuring side needs to choose the appropriate borrowing transaction scheme in combination with the company’s own financial situation and assets to reduce transaction costs and risks.Last but not least,restructuring side should do well in the reorganization of the integration work,and make full use of the capital platform to maintain the industry’s leading advantages.