Research On The Performance Of Aier Eye Hospital Establishing "PE+Listed Company" Buyout Funds

With the development of the Chinese economy,a large amount of capital has begun to flood into the Chinese market,and competition in the industry is becoming increasingly fierce.If companies want to occupy a larger market share quickly,improve brand awareness and industry status,mergers and acquisitions is one of the essential ways.However,as the capital market becomes more and more active,and the promotion of market regulatory environment,new and diversified merger and acquisition models have emerged.Buyout funds have developed rapidly in the Chinese market due to the unique advantages.Chinese unique "PE + listed company" buyout funds model grow rapidly after the first successful attempts by Dakang Animal Husbandry and Silicon Valley Paradise in September 2011,many listed companies have followed suit.By using the strategic vision and excellent management experience of PE,we can choose the target that is more suitable for our own strategic objectives,and manage the target enterprises effectively after investment,so as to rapidly improve the value of the target enterprises.This innovative model of combining financial capital and industrial capital has formed a boom in the domestic mergers and acquisitions market.However,due to the short time of "PE + listed companies" buyout funds,and the problems of poor post investment management and principal-agent risk,there are few cases of successful incorporation of target companies into listed companies.Therefore,this paper selects the event of "PE + listed companies" buyout funds established by Aier as the research object,through the evaluation of its performance before and after the establishment of buyout funds,summarizes the problems that should be paid attention to the actual operation process,and proposes more listed companies in the future through this mode of buyout funds.In addition,the theoretical and academic research on "PE + listed companies" buyout funds is still limited,the research mainly focuses on the operation mode and risk management,while the introduction of the complete operation process of buyout funds and the systematic research on the performance generated by the establishment of buyout funds are relatively few.Therefore,this paper focuses on the analysis of the performance of "PE + listed companies" buyout funds established by Aier,enriching the theoretical research of buyout funds.As the most potential emerging medical market,China has a huge market scaleand development space,but there are serious industry homogeneity competition,so it is the general trend for enterprises to take advantage of mergers and acquisitions to grow rapidly.As the leading enterprise of private ophthalmology industry in China,Aier has been speeding up the construction of medical outlets and increasing the coverage of ophthalmology business since its listing.As one of the ways to realize its strategy,buyout funds plays an important role.This paper first introduces the general situation of Aier,and expounds the background and operation process of its establishment of "PE + listed company" buyout funds,then evaluates the performance of Aier before and after the establishment of buyout funds by event research method,financial index method and economic value-added method,and analyzes whether the establishment of buyout funds can improve the performance of Aier.Through the analysis of short-term performance by event study method,it can be concluded that the establishment of buyout funds can improve the stock price of Aier in the short term and enhance the market value of listed companies.In the study of long-term performance by financial index method,it is found that the establishment of buyout funds can improve the financial situation of Aier.Through the analysis of the EVA of Aier from 2013 to 2018,it is found that the value creation of enterprises can be realized after the listed companies set up buyout funds.On this basis,combined with the specific operation process of Aier,this paper analyzes the reasons for the performance improvement after the establishment of buyout funds,and concludes the problems and key points that should be paid attention to when the listed companies cooperate with private equity investment institutions to establish buyout funds.Based on the above research,the following three suggestions are put forward for the listed companies: firstly,enterprises should make clear the company strategy and select high-quality target enterprises in advance according to the strategy;secondly,after the acquisition,they should strengthen post investment management to facilitate the secondary integration and reduce the integration risk;finally,they should find the right time to carry out the second acquisition,so as to complete the high-quality enterprises at the lowest cost At the same time,after merger,we should strengthen the integration management in the later period,so as to better play the synergy.