A Case Study Of W Company’s Spin Off And Listing

In the 1960 s and 1970 s,western capitalism was keen on diversification.Many enterprises wanted to adjust the imbalance of their business structure through diversification,and thus achieve the purpose of expanding their enterprise scale.However,blindly expanding will lead to a series of problems such as inefficient corporate governance,imbalance of resource allocation and undervaluation of market value,so the new capital operation mode of splitting and listing began to gradually become popular.Although spin-off and listing can solve the financing needs of the company to a certain extent,there will be certain difficulties in the actual operation process,which may lead to the decline of the operating level of subsidiaries and other problems.Therefore,in this context,we need to make an in-depth analysis of the spin-off and listing behavior in the capital market.The establishment of the Science and Technology Innovation Board in 2019 has set off A frenzy of spin-off and listing in the domestic A-share market.For the medical device industry,spin-off and listing have become a new choice for industrial upgrading in this industry.Taking W Company as an example,this paper makes an in-depth discussion on the motivation,process and effect of its spin-off listing,so as to provide some help for the enterprises planning to carry out spin-off listing.First of all,on the basis of combing domestic and foreign literature and theories related to spin-off and listing,combined with the basic situation of W Company,this paper expounds the status quo of W company’s spin-off and listing and the specific process of spin-off.Secondly,comparative analysis method is used to analyze the financial index and non-financial index of the spin-off listed parent-subsidiary company.Different from other research methods used in spin-off listing,this paper uses comparative analysis method,combines the industry characteristics of parent-subsidiary companies and the motivation of spin-off listing,so as to make the analysis more targeted.Finally,this paper summarizes the case of spin-off listing,and provides some reference for the companies that plan to spin-off listing.The research results show that the reason why the spin-off listing of W Company is successful is that the behavior is in line with the long-term development strategy of the company,the spin-off listing satisfies the needs of the parent company and the subsidiary company respectively,and has a favorable impact on the performance of the two companies.From the perspective of financial indicators,the following conclusions can be drawn:(1)the profitability and development ability of the subsidiary after the spin-off and listing has an increasing trend,but the parent company has an obvious decreasing trend;(2)In the short term after the spin-off and listing,the solvency of the parent-subsidiary company is improved,while the operating capacity is decreased;In terms of non-financial indicators,the spin-off has a positive impact on the brand value of the subsidiary,the research and development results of the parent company and the market recognition of the parent company.Based on the in-depth research and analysis of W Company,this paper also draws the corresponding enlightenment for W Company and the companies that plan to be split and listed.