Case Study On Financing Scheme Of Private Education Group Based On Life Cycle Theory

The K12 private-run school in China started to develop late and began to flourish after entering the 21 st century.Now it has become an important part of the socialist education cause.At present,China is moving forward from a big country in education to a strong country in education.In order to complete the historical task,private-run school must innovate the investment and financing mechanism and expand the source of funds for running schools.This paper combines the financing scheme of K12 private-run schools with the theory of enterprise life cycle,enterprise financing structure and financing preference theory,and conducts an innovative research on the financing scheme of K12 private-run schools.This paper studies the problems faced by K12 private-run schools in financing.The main problems include: financing subject,asset mortgage and income distribution.Then,this paper selects two cases to study the K12 private-run school's bank loan and stock listing financing in Hong Kong in detail,involving the analysis of the school's life cycle and the choice of financing scheme,and the establishment of the enterprise's equity structure and transaction structure.Through the above theoretical analysis and case study,this paper believes that both bank loans and stock listing in Hong Kong can effectively solve the main problems faced by the financing mentioned above.Bank loans are suitable for K12 private-run schools in the initial stage and growth stage.So that the school can obtain long-term stable funds and ensure that the school focuses on the improvement of education.Stocks listed suitable for mature K12 private-run schools,the reason is that the valuation of K12 private-run schools in Hong Kong market is higher,the listed conditions relatively loose and the inspection dimension,process is convenient,the premise is to listed companies need to set up the VIE structure.Finally,this paper also warns the risks of the financing scheme.