Research On Cooperation Strategy And Effect Of Double GP Model Relief

With the development of China’s private enterprises,private enterprises are playing an increasingly important role in China’s economic development.For a long time,China has always attached importance to promoting and guiding the development of private enterprises.However,private enterprises have been facing financing difficulties.In such an environment with large financing constraints,a large number of listed private enterprises either actively or passively choose equity pledge with fast approval process and retaining equity to finance.However,the high proportion of equity pledge has great risks.In 2018,Sino-US trade frictions intensified,the stock market went down,and listed companies faced the risk of large-scale liquidation of equity pledge and liquidity crisis.The global COVID-19 epidemic in 2020 has made it more difficult for a large number of enterprises to operate,resulting in more turmoil in capital markets.In order to stabilize the market and maintain the healthy and steady development of the economy,the state has issued relevant policies or regulations to rescue listed companies,and relief funds have been set up one after the other in response to the policies.At the same time,with the increasing number of rescue cases,the research on the operation mode and effect of the rescue fund is becoming more and more important.Dafu Technology received a joint rescue from Bengbu Investment and China Cinda at the end of 2019.In order to maintain the control of the founder of Dafu Technology,the scheme design of the rescue fund adopts the double GP model,with China Cinda Investment Management Co.,Ltd.and Beijing Bitian Smart Cloud Technology Co.,Ltd.as general partners to jointly manage the rescue fund.This case is one of the successful cases of this rescue.Taking Dafu Technology,a private listed company,as a case study object,the paper comprehensively uses case study method,game theory,event research method and other research methods to explore the specific impact of the double GP model relief fund on Dafu Technology under the background of facing the capital dilemma of private enterprises.In the process of writing,firstly,it sorts out and digests the domestic and foreign literature on the rescue fund,political connection,corporate governance,private enterprise financing and equity pledge,to understand the relevant theoretical results,especially the operation mechanism and investment model of the rescue fund.Secondly,this paper introduces the basic situation of both parties to the rescue and the motivation of each party’s rescue,analyzes the specific content of the rescue agreement and analyzes the main reasons why the case company chose the double GP model rescue fund.Then,this paper analyzes the case from three aspects: cooperation strategy,action path and implementation effect of the double GP model fund rescue.Through the analysis of the case of Bengbu Investment and China Cinda’s joint rescue of Dafu Technology,this paper draws the following conclusions: when the rescue fund is established,appropriate cooperation strategies should be adopted,and a stable cooperation alliance is beneficial to the subsequent rescue work of both parties.The double GP model relief fund can obviously boost the enterprise performance and enterprise value in the short term,but the long-term effect is not ideal.Compared with the single GP rescue fund,the double GP rescue fund can obtain more financial support,which is also more conducive to the subsequent management of the fund and equity checks and balances.At the same time,more rescue parties can also bring greater synergies,which can have a positive impact on corporate performance and corporate value.The improvement of short-term performance and value benefits from a large amount of capital investment,but the improvement of long-term effect requires both parties to make adjustments in terms of corporate governance and strategic coordination in order to produce the effect of "1+1>2".Finally,based on the analysis and summary of the case,this paper puts forward the corresponding improvement measures from the five aspects of rescue plan design,rescue target selection,rescue follow-up management,rescue evaluation system and optimization of private enterprise financing environment,in order to provide reference for other rescue parties and rescued parties,and hope that all parties can avoid such incidents from the root.