A Study on the Motivation and Financial Performance of Haidilao’s Equity Crave-Out

Since the 1980s, many European and American companies have chosen the means of equity carve-out for more diversified development, and this method is also popular and perfected in the European and American capital markets while the Chinese market started late with equity carve-out, many companies are also favorable to this means. China’s restaurant industry is highly competitive, but it is difficult to go public due to the lack of financial transparency and imperfect systems. Haidilao, the leading restaurant industry in China, spun off its spice business subsidiary Yihai International to go public with a representative approach and path. This article analyzes the motivation for the listing of Haidilao Group and analyzes the performance of its subsidiaries after the carve-out by selecting financial indicators before and after the listing and concludes that the carve-out can improve the financial performance to a certain extent. Other restaurant brands can learn from the successful experience of Haidilao to achieve the effect of disguised IPO, but enterprises should plan reasonably according to their strategic development.