The Study On Synergistic Effect Of The Merger And Acquisition Between Shenyin & Wanguo And Hong Yuan Securities

Chinese securities companies came into being in the big wave of economic reform and continue to grow and develop together with its unique characteristics of the times. Since 1987, the birth date of the first securities companies, China’s securities industry has undergone a total "silver certificate separation", "Capital Increase", "comprehensive management" and "a reference a control," the four M & A wave. Since the early development of the regulatory system is imperfect, the relevant law is not perfect, mergers between securities firms are mostly carried out by government guidance, and with the deepening of reform and opening up policy, foreign securities companies to enter China’s securities market, securities industry competitive pressures continue to increase, In order to improve competitiveness, due to consider their own development needs, mergers and acquisitions among Chinese securities companies to gradually shift from government-oriented market. In recent years, China’s securities merger implementation case between the companies is endless, July 25,2014, SW and Hong Yuan Securities announcement restructuring plan, the implementation of the whole year’s merger into reality, Chinese securities industry to date the largest mergers and acquisitions market was finally settled. The two "old" after brokerage merger, from the financial indicators and industry rankings point of view, among the top five brokerage industry, there is no suspense.With respect to the implementation of the pre-form merger acquisition programs and consolidation of the process of the takeover proposal, a synergistic effect can be effectively combined to create value for the surviving company, to influence the success of M & A activity is more important, this paper merger synergies theory, mainly from business, finance, management, and four intangibles on acquisition synergies Hongyuan brings a detailed analysis:operating synergies, the surviving corporation through inheritance of all business and branches, help complementary strengths and resources, optimize business structure to improve profitability and core competitiveness, business collaboration; financial synergies through the combination, the surviving company financial indicators and industry rankings are among the industry first echelon, to optimize the capital structure, further broaden the financing channels, effectively improve the anti-risk ability of the surviving company, to reduce the financing costs,the formation of optimal allocation of resources; management synergies after the merger, the surviving company on the one hand can draw SW excellent traditional management experience, innovation capacity but can also be invoked Hongyuan’s innovation management system and derive new management resources to improve the overall management level; intangible synergy, mergers and acquisitions mainly formed advantage in R & D capabilities, brand and customer resources Complementary to realize the value of mergers and acquisitions. However, mergers and acquisitions is the real form of synergies, but also need to refer to the subsequent integration of the case, which the survival of the enterprise follow-up management, financial management and human resource management, but also put forward higher requirements. After research and analysis, the main conclusions of this article considers Shenyin&Wanguo convertible merger prospects Hong Yuan although there are still a lot of uncertainty, is the formation of business mergers and acquisitions, a good trend in the financial aspects of the formation of coordination is gradually emerging; Shenyin&Wangu and Hong Yuan merger plan and significantly better than the industry expected, on the one hand, Hui Jin for Hong Yuan shareholders cash option, the full protection of the rights of dissent shareholders, on the other hand, highly innovative design of the entire program, both from the institutional innovation and strategic layout have made a key change in the new round of SOE reform has played a good role in the beginning; In addition, post-merger integration risk the success of the merger also plays a role cannot be ignored.