Actual combat of market value management law

We introduce the theory and basic concept of market capitalization management law, this method is usually a publicly listed company for the operation of the target of actual combat operations, but put aside the listing of goodwill, intangible assets premium and liquidity premium, the value of the enterprise and whether the listing relationship is not small, mainly to see its market share, innovative ability and cash flow. In fact, unlisted companies have the same market value, especially after their size has become bigger, the difference is that the unlisted company liquidity is not listed companies, the market to participate in the transaction of less than the main body, it is not easy to find a suitable opponent disk, transaction costs high. Many of China's largest private enterprises are unlisted companies, such as Huawei, Wanda, Ari and Wahaha, and there are a number of mega-unlisted private enterprises in Europe and America.

At the time of merger or reorganization, both listed companies and unlisted companies play a very important role in this, and valuations are the cornerstone of the deal. And what is capital operation, a story can be answered. Now there's a batch of fruit coming in, but there are some bad parts on the surface. Discount treatment? But some people will cut off the rotten parts, and then the quality of the part of the careful production plate to sell high prices in the market, this person's name is called, investors.

However, investment institutions will tend to invest in listed companies or listed companies. One of the big benefits of listing is the openness of the business, the transparency of financial data, the liquidity premium, the high return on low transaction costs, and the flexibility. The so-called market value management refers to: the company to establish a long-term organizational mechanism, the effectiveness of the pursuit of the company market value maximization, and through the capital market to maintain accurate and timely information transmission, maintain the relationship between the relative dynamic balance, so as to create greater value for the relevant subjects and shareholders. Although the value management is based on the values management, it should not only be committed to the creation of intrinsic value of the enterprise, but also to the realization of external value. In layman's terms, the most common case of market capitalisation management is through the use of competition, acquisitions and reorganization, and so on, and continue to enlarge the market value of enterprises and carry out industrial integration.

"DeLong system" has been the model of market capitalisation management law, regardless of success or failure, their attitude and entrepreneurial spirit is particularly worth learning, choose their good and from it, its poor and change it. The Minilab group, which invests 400 yuan to flush the film, started its huge industrial and financial "Empire", which involved half of China. From 1997 to 2002, DeLong carried out some of the "big" industrial integration war, including the arrival of the Xinjiang Tun River, Shenyang Alloy and Hunan Torch, through performance improvement and two-level market speculation, its share price rose 1100%, 1500%, 1100% respectively. After that, DeLong uses these listed companies ' platforms for industrial integration, through the mortgage, stock exchange, directional additional, cash or financing acquisition, the other companies in the industry into the listed companies, the total market value of the enterprise will continue to expand, and then to purchase other enterprises on the basis of continuous integration, the company into an industry leader, established a market position. Although the final development of DeLong is somewhat dramatic, it does not obscure the brilliance it once created.

The benefits of market capitalisation for the company are as follows:

1. May at any time carry on the equity mortgage, the financing, after unceasingly bigger may mortgage, refinancing, the Enterprise fund has the fluidity, the flexibility, the Fund may carry on the circulation use. The use of money is rising, and if it's in the vault, it's always just that much money and it's not going to create value. But if the enterprise is particularly large, still need to maintain the appropriate leverage, safety margin and wind control, like a war always have a reserve team, with the history of the German-long rout as a guide, enterprise funds can not be excessive overdraft.

2. Make full use of capital operation means, through effective mergers and acquisitions or equity participation to expand, learning delong do industry ideas. In the third quarter of the first article mentioned: VC/PE for the trend of sunken ship enterprises generally will not invest, but the industrial capital or enterprises can. Only by making their own enterprises into industry, can through continuous mergers and acquisitions, equity participation and restructuring to carry out synergies, and constantly expand the enterprise.

3. Through effective marketing, continuously spread the value of the company, establish an industry position. Market value management is inseparable from the relationship marketing of capital market. Why to do the whole industry chain integration, why to develop new media, why endogenous growth and extension of the layout of both? Bouquet is also afraid of Deep alley, you want to have a big development, the first need to be known to others you, so big market value itself is a strong marketing strategy.

There are many kinds of ways to manage the market value of listed enterprises, how to create values for enterprises, and the realization of value is also a very arduous task. Industry factors, innate genes and competitive gaming inhibit the company's ability to grow indefinitely, even in companies that are in an attractive position to lead the way. In addition, the company's internal management system, structural framework, staff quality and team spirit and other factors will affect the enterprise to create value process.

In the second quarter, we mentioned the concept of the industry valuation method, using the entire industry to predict the future valuation of the enterprise, but when using the industry valuation method, two important premises were not clearly stated in the previous article. First, the industry must be an explosive growth industry, if the industry has a downward trend in development or can not grow at a high rate within the predictable period, it is not within the scope of selection. Second, the industry can not be too big, if it is an infinite growth industry at the same time the plate is very large, the future unpredictable things too much, the industry valuation method is not applicable. But the market capitalisation is different, we can still be in the super big industry or declining trend of enterprises in the industry to use this thinking and methods, because the industry is often declining when the business downturn is a good time for mergers and acquisitions.

In the article "Acquisitions must create value," We cite a virtual example of an industrial gas company, which argues that "landlords" simply merged to buy "two or four two", because there is no synergy and new cash flow, so it does not create value. In fact, this is not comprehensive, because this is only a period of time to the financial analysis and acquisition of a company to make the inference. In fact, the "landlords" of the leader is very ambitious and adventurous spirit, through mergers and acquisitions can quickly expand the scale and accumulation of experience, after a period of integration process, can use the new company to acquire a larger standard, establish industry status. So unlisted companies can adopt the essence of market value management method to make investment decision, and there is no essential difference.

Finally, dr.2 to emphasize the concept of an "ecological", that is, in the same industry, to maintain reasonable competition in the market. Enterprises can not be infinitely bigger, especially in a large plate industry, monopolies often also means high risk, because the market is dynamic. For example, why is Tencent into the Beijing east instead of Alibaba? If Alibaba and Jingdong become a family, then in the electric business industry in fact formed an absolute monopoly, this leviathan will be for their own interests to hinder the development of the whole ecology, will become particularly heavy, and then continue to be challenged by the invaders. Because human society, like nature, has the ability to repair and balance itself. Reasonable competition can accelerate the development of enterprises and the whole industry, but also encourage innovation and technological progress. As if without the tiger, the juvenile pie should have gone sadly, unable to complete the fantastic drifting feat and grow into a real man. Your friends can only help you for a while and your opponents will make you a changed man.