Research On The Synergy Effect Of Securities Industry Mergers And Acquisitions

With the continuous development of China's capital market,the securities industry ushered in new opportunities for rapid development.China's securities industry is characterized by large quantity,small scale and weak strength,which restrict the further development of companies,but also encourage enterprises to accelerate the pace of mergers and acquisitions,to obtain resources,achieve complementary advantages and enhance competitiveness.Securities industry focus on talent,capital,market and other resources,but they are not easily available,so merger has become the best choice.Recalling the large securities companies,almost every one has the experience of mergers and acquisitions,to occupy a favorable position in the fierce market competition.The key to success and desired results is the synergistic effects of mergers and acquisitions.If the mergers and acquisitions can give full play to the synergistic effects,they can produce the effect of “1+1>2” and greatly enhance the strength of companies.In recent years,more and more securities companies carry out mergers and acquisitions,both the quantity and size are on a new level.Shenyin Wanguo and Hong Yuan Securities merger case began in October 2013 is a typical one of them.As the largest case so far,Shenyin Wanguo merger Hong Yuan Securities involving nearly billion of assets and multi stakeholder,is very complex,it has a strong research value.If the merger achieve a powerful combination and has a meaning of reference and promotion deserves our attention.So the article takes the SW merger as a typical case to analyze.Shenyin Wanguo's assets and profitability expand rapidly,achieves the goal of curve listing,clears the predicament and enter the first echelon of the industry.After the merger,the company's market competitiveness and discourse power have been greatly improved.These two companies achieve complementary advantages in the operation,management,finance and intangible assets,give full play to the synergisticeffects and achieve the purpose of mergers and acquisitions.This paper introduces the background and significance of the study first,and then summarizes the theory and literature related to mergers and synergistic effects,which lays the theoretical foundation for the following research.The paper introduces Shenyin Wanguo and Hong Yuan Securities merger case for better research,introduces the basic situation of both sides and acquisition process,analyzes the motivations of the merger.Based on that,the article analyzes the synergistic effects of Shenyin Wanguo and Hong Yuan Securities merger case from operation synergy,management synergy,financial synergy and intangible assets synergy,and also uses the internal model to test the synergistic effects.In addition,the paper also pays attention to the factors that may effect the synergistic effects.Through the analysis we can tell this merger achieves synergistic effects.The successful experience can be extended to securities industry and provide some reference for other companies,in order to improve the success rate of mergers.