Capital operation is to operate the tangible and intangible existing assets of the enterprise efficiently by way of flow, fission, portfolio and optimal configuration, which is aim for the maximum capital appreciation. It is a fundamental condition for the enterprises' production and operation, also provides incentives for enterprises to create profits.
Capital operation introduces the high investment value of a company into the capital market at an appropriate time, realizes the potential value added contained in its brand, and turns corporate value, which is formed through years of investment and brand building, into real profit through price premium. The logic is simple. For a first-rate company, it will take a very long time for it to expand its scale of business through capital accumulation if it were only to make money from its products. Returns on assets of a company are always limited. Suppose the return on assets is 20 percent. Then every RMB 100 invested will only earn RMB 20 in profits each year. It will be years before the corporate scale is doubled. If 20 percent of the rights are diluted for financing, RMB 80 could be financed at one time with a P/E ratio of 1:20 in the capital market.
The important role of capital operation in the development of small business
In the production management of business, the operation of capital is at a high level, which can improve the product structure, expand the scale of enterprise, optimize resource allocation, enhance the management level, these major roles can be seen from the following aspects:
1. Help enterprises achieve the optimal allocation of resources;
2. Expand the business scale, and optimize the capital structure;
3. Help enterprises to improve their management level.
Tannet's capital operation services include, but are not limited to, restructuring, mergers and acquisitions (M&A), liquidation, stock reform, asset management, overseas trust, insurance and financing, etc. Capital investment is concerned with the deployment of capital for long-term uses. Companies make continual capital investment to sustain existing operations and expand their businesses for the future. Tannet's capital investment is value-oriented, with the investment mainly in the direction of equity investment, property investment, project investment and human capital investment. Tannet's investment can range across to the primary industry, the second industry and the third industry.
Contact Us
If you have further inquires, please do not hesitate to contact Tannet at anytime, anywhere by simply visiting Tannet’s website www.tannet-group.net, or calling Hong Kong hotline at 852-27826888 or China hotline at 86-755-82143422, or emailing to tannet-solution@hotmail.com. You are also welcome to visit our office situated in 16/F, Taiyangdao Bldg 2020, Dongmen Rd South, Luohu, Shenzhen, China.
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