During the operation of listed companies, with the change of business strategy and market conditions, some subsidiaries and business segments will develop strongly and have outstanding intrinsic value.
Or there are some subsidiaries and business segments that are not suitable for the long-term business strategy of listed companies, have no growth potential or affect the overall business development of enterprises.
In this context, in order to make the allocation of resources more reasonable, promote the better development of subsidiaries and business segments, better avoid risks and make listed companies more competitive, listed companies will adopt capital operation methods such as separation, spin-off and divestiture to promote the overall value.
After the relevant listed companies adopt the capital operation mode of separation, split and divestiture, it has a positive impact on the overall strategy implementation, market value management and business development of listed companies, which is worth learning.
Extended data:
The role of contractive capital operation in the development of enterprises in China;
The expansion and contraction of an enterprise, like the movement of the piston in an engine, has a dialectical and unified relationship:
Expansion leads to contraction. Any form of merger has a "degree". When the expansion of M&A exceeds this "degree", it will lead to diseconomy of scale, increase of average cost, decrease of profit rate and decrease of enterprise performance.
When this expansion exceeds a certain degree, it will shrink to optimize resource allocation.
Contraction is the basis of expansion, and it is for better expansion in the future. In order to pursue a larger expansion after El, enterprises sometimes have to retreat to advance, first "reduce swelling", divest some businesses or departments that are incompatible with the development strategy of enterprises, and then go into battle lightly.
The expansion momentum may be stronger. Therefore, not only the expansionary capital operation with merger and acquisition as the main content can make the enterprise develop, but also the contractive capital operation with divestiture as the main content can promote the enterprise development.
Baidu Encyclopedia-Shrinking Capital Operation