Research On The Performance Of Equity Carve-outs Of The Poly Property Services

In recent years,China’s real estate has entered the era of stock,how to seize the opportunity to become the common thinking of real estate companies,so reasonable asset operation is more and more concerned by real estate companies.Benefiting from the focus of the stock housing market and national policies,the innovation of property management mode has become an important link,and its development prospects are considerable.In the post-real estate era,the equity carve-outs of property management companies can make them get rid of the restrictions of being affiliated to real estate companies and expand their own development,which is of great benefit to the development of property management companies.Real estate companies can not only reduce the negative synergistic effect caused by business differences,but also enable efficient allocation of resources,realize more professional operation and give full play to the market value of subsidiaries.In view of this,a large number of real estate companies choose to separate their property management subsidiaries and go public in order to get better development.Therefore,this thesis takes the equity carve-outs of Poly Property Services as a case,aiming to explore the motivation of its equity carve-outs,the performance changes before and after the equity carve-outs and the reasons for the changes,so as to provide reference for property management companies with the same intention.Based on the case of Poly Property Services,this thesis elaborates and analyzes the performance changes of the equity carve-outs through five parts.The first is the introduction,which elaborates the research background and significance of this thesis,and makes a literature review from the motivation and performance of the equity carve-outs of enterprises.Then sorts out the research ideas and methods,and finally summarizes the research content and writing framework.The second part is the theoretical overview.This part summarizes the definition and model of equity carve-outs,motivation and performance evaluation methods,and introduces the relevant theoretical basis.The third part is the case introduction,which includes the basic information of the parent company Poly Developments and Holdings Group and its subsidiary Poly Property Services,the motivation and specific process of equity carve-outs.The fourth part analyzes the performance changes and causes of the equity carve-outs of Poly Property Services,and makes a comprehensive evaluation from the three dimensions of market,financial and non-financial,and analyzes the causes.The fifth part summarizes the conclusion of the research on the performance of the equity carve-outs case of Poly Property Services,and puts forward the corresponding enlightenment to the equity carve-outs behaviors of other property companies.This thesis uses literature research method to lay a solid theoretical foundation,and summarizes and combs the views on the motivation and performance of equity carve-outs.Then,taking the equity carve-outs of Poly Property Services as the research object.The case analysis method was used to explore the motivation and process of the equity carve-outs,and the event study method,financial index analysis method and non-financial index analysis method were respectively used to analyze and evaluate the performance changes in market,financial and non-financial aspects after the equity carve-outs.The study found that Poly Property Services chose to go public by spin-off mainly because of four aspects: expanding investment and financing channels,motivating management,focusing on core business and obtaining valuation premium.In the process of analyzing the performance of Poly Property Services before and after the equity carve-outs,this thesis finds that the event study method does not bring significant market reaction to the parent company in the short term,but brings positive market performance to the subsidiary and improves its value.After the equity carve-outs,the solvency and growth ability have been improved,the operating capacity remains relatively stable,and the comprehensive financial risk is gradually reduced,but the improvement of profitability is limited.In addition,social recognition,management scale,innovation ability and employee motivation are gradually improved.Then,this thesis further analyzes the causes of the performance changes of Poly Property Services,including the refinancing of rights issue after the spin-off promoted the expansion of scale,accelerated the release of value-added business potential,strengthened strategic layout and strengthened competitive advantages.This thesis puts forward three suggestions to improve the performance of enterprises through equity carve-outs.First,equity carve-outs should conform to the strategic objectives of enterprises,and avoid blindly following the trend and even "rounding up money" in listing.Second,we should choose the right way and place to make good preparation for the equity carve-outs.Third,it also needs to rely on reasonable planning and layout to achieve the best spin-off effect.