Commercial Banks To Participate In The Discussion Of Mergers And Acquisitions Intermediary Business

During the course of commercial bank dealing with bad assets, the way of lawsuit and auction has been confined to be the old traditional means. To create new ways of financial running has reached to a critical phase. Based upon practical cases, this article tries to search for new ways employed by investment bank in dealing with bad assets, thus setting up a commercial code for commercial bank to participate in agency business in the field of enterprise merger and acquisition.There is a bright prospect in the market of debt restructuring as well as merger and acquisition. As a medium, commercial bank offers agency service to both sides of enterprises in information collection and making plan, etc, then efficiently cutting down cost and risk of merger and acquisition. Pushing forward the success of merger and acquisition between enterprises is a profitable strategy for both commercial bank and enterprise. To take part in the process of merger and acquisition between enterprises actively shows the pursuit goal of commercial bank's corporation value in the aspects of dealing with bad loan, optimizing income structure and gaining high-grade clients. Although there are some obstacles in the way of merger and acquisition, such as restriction of the ownership of enterprise, and lagging of legal construction of investment banking, commercial bank plays a positive role of bridging enterprises'merger and acquisition, shortening the gap of business structure between Chinese bank and foreign bank and accumulating helpful experience for commercial bank to transfer into mixed running.Developing agency business of merger and acquisition, from the outer environment, opening-up pattern of finance and dominant trend of blended-business running mode appeal to finance creation urgently, great demand for agency business and fast-developing capital market provides commercial bank opportunities and precondition, and another advantage is that there is no legal block on the way of merger and acquisition business; from the inner environment, commercial bank is inferior to competent personnel, brand and experience but it is superior to reputation, client resource, information resource and regional culture which are the in-fixed guarantee of promoting merger and acquisition business.Agency business of merger and acquisition is a kind of business with low risk but high profit. It is economically feasible. In view of the theory of trading cost, enterprises can lower cost of merger and acquisition,offloading the burden of enterprises through agency organization. It is reasonable for agency organization to be. There will be certain direct and indirect cost in the operation of commercial bank, as well as systematic and unsystematic risks. Meanwhile, cooperation of management and realization of range economic will bring good return.Running agency business of merger and acquisition requires commercial bank sit itself at a strategic position, performing and organizing activities in a scientific way, led by the principle of long-term development, brand priority, competent personnel, cooperation and concentration, then to establish a healthy and practical operating system. It also needs commercial bank to follow the laws and measures of merger and acquisition, and strengthen the control of risks.This article has addressed the participation of commercial bank involved in the agency business of merger and acquisition between enterprises by the research means of practical cases combined with theory so as to make some progress in breaking through the dealing with bad assets on the way of merger and acquisition at present, increasing agency service of commercial banking and accumulating experience of investment banking. The author of this article hopes to make some contribution to the mixed-running trend of commercial bank, explored a creative way of multi-direction business.