Study of the Impact of Private Equity Involvement on Corporate IPO Decisions

Shengyuan Chen; Xinyi Mei; Yujie Yang

doi:10.54097/7m6pc238

Authors

Shengyuan Chen
Xinyi Mei
Yujie Yang

DOI:

https://doi.org/10.54097/7m6pc238

Keywords:

Private equity, IPO, Single case analysis method, Tiantu.

Abstract

At present, private equity investment has become a relatively popular option for financing enterprises of unlisted companies. This paper conducts a case study on the changes in profitability, development, and technological innovation ability of NAIXUE before and after its listing. Tiantu invests in this famous listed catering company to explore the issue of how private equity intervention affects the decision-making of enterprises to go public. The single-case study found that personal equity intervention can help enterprises accelerate the speed of financing, improve their soft power, profitability, and competitiveness, and accelerate the listing process. They proposed a profitable way for private equity firms to continue to hold shares after listing. Under its unique operation mode and management ability, private equity supports enterprises in management, technology, resources, and other aspects. Resource integration helps solve the difficulties in developing enterprises before going public so that they can concentrate on technological innovation.

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