A-share merger and reorganization of the current suspension tide: PE profit model to find a new channel

With the gradual deepening of economic transformation, a-share merger and acquisition restructuring has come to an climax. According to the data from the public market, as at August 20, 2014, there were 214 stocks in a share market, of which 59 were suspended, and 155 were suspended. The reasons for the 214-stock suspensions are "significant", while the vast majority of the so-called major issues involve mergers and acquisitions, restructurings or backdoor listings. These companies are given higher valuations because of the market's preference for mergers and acquisitions. This wave of mergers and acquisitions not only let the two-level market investors surging, but also to take this project to withdraw from PE, VC earned pots overflowing. Macro measures favorable mergers and acquisitions data show that the current a-share company restructuring of the main direction of the new energy, TMT industry and cultural industries. New energy technologies, such as lithium-ion batteries, will have a long life cycle, in the context of traditional communication tools such as smartphones and tablet computers, which are affected by industry upgrades and environmental dynamics. In addition, in the real estate, automobile, infrastructure and other traditional industries facing the background of surplus, network technology, electronic communications, media, such as TMT industry rapid development, China's economic restructuring and the highest prosperity of a class of industries. and cultural industry as the country to encourage the development of the industry, the growth of space, become a cross-border goal is also understandable. "At present, China's economic structure is in transition phase, listed companies will follow the direction of industry development or innovation to enhance the core competitiveness of their own." "Analysts pointed out that this transformation is in line with the objective requirements of economic development, but also the guiding role of policy." For example, by the state to create new media groups and other policies driven by public companies to invest in entertainment into hot spots, cultural sector shares rose, the two-tier market good performance, stimulating a large number of listed companies to expand Cross-border investment. In addition, "National nine" to encourage market restructuring and a new round of mixed ownership reform, such as a series of macro-measures favorable mergers and acquisitions. The change of PE profit model it is worth mentioning that the above listed mergers and acquisitions in the case of the majority of the acquisition of VC/PE institutions to invest or participate. Statistics show that the hundred round pants mergers and acquisitions of the global easy to buy by Deep venture capital injection 5,000 yuan, 0 yuan, accounting for 21.7% shares. Crown Fu home mergers and acquisitions of technology, by VC/PE agencies in Shanghai Yong Xuan Investment, accounted for 8%, and so on. "For VC/PE investors, this wave of suspension not only means that the exit will become the future VC/PE important exit channel, but also the agencies through a variety of ways to participate in the merger and reorganization of listed companies in the process of seeking new profit model vane." "It is understood that China's VC/PE institutions have always been the main exit from the IPO, mainly because of the return of the IPO mode of investment, but the threshold of the IPO exit is high, not every enterprise has a listing conditions, not every enterprise in the listing can gain value growth, high cost, long time, limited market capacity, The risk is related to capital markets and securities approval requirements, any change in the capital market may be in VThe C/PE market is stirring up waves. Recently, the introduction of nine new countries on gem financing, brokerage innovation and other documents issued to show the increasingly stringent IPO regulation, and regulatory policy changes to bring many of the uncertainty of the IPO exit; By contrast, the State Council's opinion on further optimizing the market environment of Enterprise merger and reorganization, issued in March this year Shows that the government has introduced multiple policy incentives and the merger and reorganization process is being streamlined. Industry insiders said that, encouraged by national policies, mergers and acquisitions are expected to be more active, and more VC/PE institutions will participate in the merger and reorganization process of listed companies.