The Reason And Effect Of Parent-subsidiary Double-layer Structure In The Merger And Acquisition Between Shenyin&Wanguo And Hong Yuan Securities

In recent years, with the expansion of the scale of mergers and acquisitions, transaction amount is constantly refreshed, the combination of cases has gradually become the focus of the market.Undoubtedly, the powerful combination will become the main development trend of mergers and acquisitions among enterprises. But in reality, because of comparable strength, the two sides of the powerful combination will be fragmented, the fight for the interests, so that it cannot give full play to the advantages of joint, nor are scientific and reasonable operation, which leads to powerful alliances hard to go on. Therefore, studying the organization structure of the powerful alliances has great significance.The securities industry consolidation wave pushing itself appeared the case of powerful combination. On 25 July 2014, the merger plan of Shenyin & Wanguo and Hong Yuan Securities is settled. So far, this is the largest M & A case in China’s securities industry. In the case, parent-subsidiary double-layer structure is not only a major bright spot, but also innovative. The architecture is more convenient to realize diversified business development mode in the overall business layout. This article is to the parent-subsidiary double-layer structure as the research object, to study the reason and effect.Through the analysis of mergers and acquisitions in the interests of the government, both companies strength and executive interest, found that it need to consider how to balance the interests of all parties in the the Merger and Acquisition between Shenyin & Wanguo and Hong Yuan Securities. Parent-subsidiary Double-layer Structure is the product of the powerful combination of the strength of the large enterprises. It effectively balance the interests of management and Shanghai, Xinjiang, and obtain the support of the Central Huijin and the two governments. Through analysis of government revenue, enterprise management, financial and human resources, we can see the architecture to achieve the two resource sharing, business and regional advantage complementary and elevate the management level and management quality. But after the merger,it did not implement a unified pay system, resulting in some of the staff to resign, so that the poor performance of human resources.With regards to the study,which is Parent-subsidiary Double-layer Structure of the Merger and Acquisition between Shenyin & Wanguo and Hong Yuan Securities, expect to see the positive effects, and the design of the architecture can provide a reference for powerful combination among other large enterprises.