The Valuation And Integrated Cost Analysis Of Ping An Purchasing Sdb

Through the case of Ping An Insurance (Group) Company of China (be simple as PING AN) purchased the Shen Zhen Development Bank (be simple as SDB), this article evaluated the value of the SDB using the Equity Free Cash Flow Discounting Model. SDB had the great purchasing value and the significance both in the fact of financial analysis and financial channel.This case was the milestone for development of banking plate in stock markets. However considering integrated cost which could not be exactly calculated by simple model should be included in purchasing cost, we only had to do the qualitative analysis from macro level. Trough the analysis of integrated cost of the management, financial, business procedure and culture, I concluded that the integrated cost improved this purchasing risk.On the whole, we drew the expected conclusion after analyzing the cost of purchasing and integration. Even though the purchasing cost and the integrated cost is a little higher than the value of SDB, this purchasing action is significant for the future. This case started the purchasing and merging waves in financial industry of China since the merging and purchasing focused on manufacturing and resourcing industry before. At the last part of this article, I concluded this case and provided some suggestions for merging and purchasing in China. I hope the financial industry of China can be stronger in the world.