Study On M Company’s Equity Structure Design

This article takes M Company’s business development and ownership structure as the research object,analyzes the irrationality of M Company under the unitary ownership structure through combining theory and case studies,and points out the problem of excessive reliance on "faction" support.At the same time,it analyzes in detail the achievements of the company under the structure of dual equity governance and employee stock ownership platform after equity reset.The author works on a government investment platform,representing the government in investing and supporting high-tech enterprises,thereby driving the development of regional industries.M Company is a real case encountered by the author during his investment process.In 2019,the company developed relatively slowly,but due to unreasonable equity structure and management authority,it encountered malicious competition during its further development.To liquidate and reorganize the company in 2019.From the perspective of investors,the author also serves as a financial advisor to M Company.On the one hand,he supports M Company to further expand its market share through equity investment,and on the other hand,he also hopes that M Company will grow into an excellent and neglected online company in the region.By communicating with Founder A and assisting Company M in designing a new equity structure and related terms,Founder A has established a top-level design thinking.In the new structure,Founder A has abandoned short-term gains,but rapidly expanded operating revenue and valuation.The study found that the situation of M Company is a common phenomenon in companies at the beginning of their startups.The founders have technical and product development experience,but lack top-level design and strategic planning.In fact,a company needs to set up a matching equity structure based on its actual internal and external environment during its start-up,development,and acceleration periods.The ownership structure refers to the proportion of different types of shares in the total capital stock of a joint stock company and their interrelationships.Equity refers to the rights and obligations of a stock holder corresponding to the proportion of shares they own and the power(obligation)to assume certain responsibilities.The rights that can be claimed against the company based on shareholder status(identity).This article combines the company’s financial situation,using relevant theories such as principal-agent theory,summarizes and summarizes the legal,employee,and strategic development aspects of the equity structure,deeply analyzes the internal and external environment,analyzes the unreasonable factors of the equity structure,and optimizes the final targeted solutions.