Analysis Of Synergistic Effect Of China Ping An And Shenzhen Development Bank's M&A Case

The implementation of mixed operation in industries such as finance and insurance is a future development trend,and many developed countries are implementing mixed operations around the world.At present,China's major Banks,Insurance institutions and other financial groups are trying their best to obtain all financial licenses and carrying out mixed operations.Due to economic systems,regulations,license shortages,etc.,it can not be accomplished in a short peirod of time for financial groups using its own business accumulatuion.Therefore,expanding business scale through mergers and acquisitions of high-quality companies is an effective way to achieve mixed operation,and it is also one of the most important way for enterprises to achieve optimal allocation of resources and expand production scale.China Ping An's acquisition of Shenzhen Development Bank is a milestone.It is not only the largest M&A case in China's financial history,but also a huge attempt for insurance companies to achieve mixed operation by merging banks.Previously,scholars did a lot of research on this case,and also studied synergies from different aspects.This artical prefers to use an angle of synergy to restore the M&A case,and from the perspective of insurance M&A banks,analyzing the whole case in five points of view throughout strategy,operation,administration,intangible assets and financing.It shows the synergy effect of Ping An's acquisition of Shenzhen Development in a three-dimensional and comprehensive way,hoping to make a periodic evaluation of the acquisition.At the same time,by studying this merger case and exploring its synergistic effect,it can provide direct experience for insurance companies to merge with commercial Banks in the future,and also provide reference path for other financial institutions in China to realize mixed operation.Based on Ping An's acquisition of Shenzhen Development Bank,this thesis analyzes the synergies generated by M&A.The main content is discussed by following aspects.Firstly,it expounds the background and significance of the research,and summarizes relevant literatures at home and abroad,and systematically analyzes the relevant theories of mergers and acquisitions.Secondly,the article emphasizes the rationality of China Ping An and Shenzhen Development M&A case,that is,Ping An needs to accelerate the promotion of mixed operations.In the situation of increasing proportion of banking business,Shenzhen Development Bank continues to solve the problems of shortage of funds and insufficient reserves in the course of sustainable development.From the perspective of decision-making,the thesis analyzes the financial risks and integration risks that M&A may encounter.Thirdly,the thesis uses the literature and M&A related theories explain the changes betweewn stratigic synergies and management synergies from strategic objectives,production lines,management models,management platforms,etc.It comprehensively analyzes synergies by using a large amount of data from customer sharing?operation branches and solvency?profitability?cash flow and other perspectives;At last,the thesis concludes the case of Ping An's M&A of ShenZhen Development bank,and summarizes the measures that can be used for reference.Through the case study of China Ping An's M&A SDB,financial institutions are able to enhance its various capabilities with right M&A means,and its ultimate purpose is to improve its comprehensive ability,so that the group value can be promoted;During the proccess of Ping An's M&A of SDB,it has set up multiple M&A objectives subject to strategic objectives,and clearly realized the advantages and disadvantages of both sides,Ping An has integrated its management capabilities,brand strengths,network capabilities with the professional advantages of the banking sector of SDB.In terms of strategy,Management,operation,finance and other aspects,synergies have been achieved,and M&A have been completed smoothly,so it has generated zero negative impact on the Group's business;Ping An'sM&A of SDB is worth learning for other financial institutions in terms of overall strategic design,mergers and acquisitions operations,business segment synergy,network integration and the use of life insurance;in the short-term after China Ping An's M&A of Shenzhen Development bank,the business of Ping An has been running steadily,which has overcomed the difficulities faced by SDB before the M&A,However,Ping An Group's overall profitability and business growth capacity have not significantly improved,which still takes a long time to further complete the integration of resources,so as to improve the overall performance of the company.