A Research On Financial Synergistic Effect Of Fangzheng Securities Merger And Acquisition Of Minzu Securities

China’s economy is in the stage of rapid development,domestic enterprises are also actively responding to the global development model,using mergers and acquisitions to improve market share and create value for enterprises.Enterprises carry out MERGERS and acquisitions to obtain financial synergies,and financial synergies are important criteria to evaluate the success of mergers and acquisitions.Therefore,it is very important to analyze the financial synergies when evaluating the performance of mergers and acquisitions.At present,China’s securities industry is characterized by the majority of small-scale securities firms.The development of small-scale securities firms is limited by factors such as small capital volume,weak competitiveness and uneven distribution of resources,which restricts the rapid development of China’s securities industry.At the same time,the superior business among securities firms is highly overlapped and the innovation ability is weak.If small and medium-sized securities firms want to survive for a long time,they must enhance their capital strength and development ability and gain a certain dominant position in the industry,that is,they can maintain enough anti-risk ability in a depressed market environment.Based on these conditions,MERGERS and acquisitions can solve enterprises’ demands to improve their own conditions more quickly and efficiently,fundamentally reduce meaningless fights and infighting,and improve industry concentration and resource allocation efficiency.Throughout the m&a cases of securities firms in recent years,most of them are led by the government,and there are few m&a cases completely based on marketization.Fangzheng Securities’ acquisition of Minzu Securities has opened a precedent for market-based mergers and acquisitions among securities companies.In addition,this case differs from other cases in that it is a typical merger and acquisition between small and medium-sized securities companies,which fits the development trend of China’s industry in the future,so it has good representativeness and reference significance.In this thesis,the process and plan of the MERGER and acquisition are introduced briefly at first.Then,the motivation of the financial synergies is analyzed in detail based on specific cases.Then,the financial synergies of the merger and acquisition are evaluated by using the event study method,financial index method and economic value added method respectively.Finally,based on the thinking and summary of the whole case,the author puts forward corresponding suggestions,hoping to inspire related events and promote the smooth progress of other M&A events.