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Advantages And Disadvantages Of Apparel Enterprises Going Public

2011/12/21 12:02:00 7

Advantages And Disadvantages Of Apparel Enterprises Listed

Li Kailuo said that capital is the booster of enterprise development, and there is a qualitative leap after the listing.

compete

China is evenly divided. It is because the listing has opened a great distance between the two.

After the listing of enterprises, the capacity and scale increase; the funds needed to solve the development of enterprises will provide a stable and long-term financing channel for the sustainable development of the company, which will form a benign fund cycle; be conducive to attracting talents and opening up market space; conducive to the pformation of private enterprises; enabling the market to resist risks and diversify production; and enhance the public of entrepreneurs.

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Wait.

Although the listing has many advantages, just like a coin has two sides, the listed companies are listed.

malpractice

It is also being mentioned constantly.

The obligation of the public (including competitors) to disclose information fully, including information on main business, market strategy and so on, sometimes has a negative impact on a listed company. After the listing, in order to protect the interests of small and medium shareholders, a major business decision of a company needs to fulfill certain procedures, which may lose part of its business flexibility as a private enterprise. After the listing is diluted, management will inevitably lose part of its control over the enterprise. After listing and listing, enterprises need to pay higher fees; such as public relations costs, investment banking costs, audit fees of financial statements, etc., and listed companies need more obligations and more responsibilities than the private enterprises, and management will also be more stressed. After listing, enterprises are no longer Private Companies, but have regular direction.

At the same time, more than 90% of the domestic garment enterprises are private enterprises, most of which are based on family management, which is not compatible with the rules of the stock market game used in the capital market. If we want to go public, we must carry out the shareholding system reform.

As for the different problems exposed in the process of applying for listing, the analysis of the investment department of a securities company may be due to the incomplete reform of the enterprises themselves, resulting in a hidden danger that is difficult to change in the short term. Some textile and garment enterprises have short preparatory time for listing and lack the guidance of professional organizations, resulting in their lack of timely recognition of the lack of management mechanism.

The official said that there were three kinds of consequences for the unsuccessful Enterprises: the first outcome was to start the "big shuffle", to replace all the key personnel and institutions responsible for the listing work, and to re declare them; the second outcome was to sort out the problems of the enterprises themselves, carry out rectification, and report them again after the completion of the rectification; the third outcome is that the enterprises completely abandon the idea of listing, and no longer apply for listing, or turn to the overseas listing path.