Study On The Synergistic Effect Of Shenyin Wanguo's Acquisition Of Hongyuan Securities

Since the end of the nineteenth century,the world's major developed countries have experienced five large-scale mergers and acquisitions tide.Historical experiences show that there is no big company that has not grown up by mergers and acquisitions in some way or another.What's more,almost no major company is mainly based on internal accumulation of growth,mergers and acquisitions is the most direct and efficient way to quickly change the value of the enterprise.In the modern M & A theory,the synergistic effect is the most important motive of M & A,and it is also the key factor to evaluate the success of M & A.Therefore,how to understand the synergistic effects,how to measure synergies,and how to achieve synergies,these problems are becoming much essential for the increasingly active M & A activities in China.Making Shenyin Wanguo merged Hongyuan Securities as a case,this paper analyzes the operational synergies,management synergies and financial synergies form qualitative and quantitative levels.And using the accounting index method as a quantitative analysis method,this paper tries to build a evaluation framework of mergers and acquisitions synergistic analysis for similar corporates,in order to facilitate similar enterprises to learn from.Four main parts compose this paper.The first part is about research background,significance,ideas,methods,innovations and research on the synergistic effects of M & A.The second part is about detailed introduction of the case of Shenyin Wanguo and Hongyuan Securities merger and acquisition,including the basic situation of both sides of the merger,the M & A motivation,M & A program and the implementation process and other aspects.The third part,as the core of this paper,mainly analyzes the operational synergy,management synergy and financial synergy of the merger and acquisition from the qualitative and quantitative aspects of the two levels,then focuses on the part of the erosion effect after the merger and acquisition.The fourth chapter is about the conclusion and deficiency of the research.According to the results of the case analysis,it points out whether this merger and acquisition gets synergistic effects in various aspects,and gives a comprehensive evaluation.Then it points out some shortcomings of this paper.Through the analysis,the paper thinks that the company acquired the synergy effects of operation and management in the first year after the merger and acquisition(2015),but the erosion effect appeared in the financial aspect.In nutshell,the company got the synergy effects partly in 2015.However,in the next 2016,by the impact of market downturn and its own factors,the erosion of the operation and management have emerged.So,in general,the company did not get synergies.