The Analysis Of Securities Company M&A Motivation And Performance

Chinese securities market is developing very rapidly since starting at the end of the last century.As the capital market opening to the outside world,foreign securities companies begin to enter the Chinese market through various channels,which makes the competition increasingly fierce,while the securities industry's traditional business field erosion by the banks and the insurance industry,Chinese securities companies are in a bad situation.In order to improve the core competitiveness of Chinese securities companies,securities companies choose acquisition to make themselves stand out from the fierce competition.M&A is a way to quickly scale expansion,adjust industrial structure and improve the operating conditions for the companies,however,more and more failure examples tell us M&A is not a simple combination for two enterprise,but need to optimize the two enterprise's resource,in order to achieve a better performance.This paper consists of six parts,the first part is introduction,mainly introduces why the article choose the M&A as the topic and introduces the research significance,then raises the purpose of this document.Next is a briefly reviewed about the foreign and domestic related theory of the mergers and acquisitions,and introduces the research contents and research methods,make this article more logical.The second part of this article introduces the basic theory,mainly introduces the coordination effect theory,the theory of Scale Economies,Market forces theory,Value underestimation theory,Transaction cost theory,which provide theoretical support for the article.The third part of the article introduces the securities industry's four wave of mergers and acquisitions,as well as the present situation of the securities industry in our country,and analyzes the trend development of the securities industry in the future,which leads to the M&A is the inevitable choice for the securities company.The fourth part respectively introduces the Shenyin & Wanguo's and the Hongyuan's development course,introduces the operations from establishment to merger,which makes the merger have a clear time logic.It also introduces the Shenyin & Wanguo absorbed Hongyuan's merger plan.Finally introduces why the two companies merger,the main reasons are it can quicken the steps of listed for Shenyin & Wanguo,and realize the complementary of business advantages and location advantages,realize the powerful combination with the government's impetus.The fifth part introduces combined performance,include the business performance,financial performance and the management performance,the main purpose is to test whether the merger between the two sides achieve the synergistic effect of 1 + 1 > 2,finally it analyzes the factors that restrict the performance.The sixth part is a summary about the article.The merger is successful in the short term,the business performance,financial performance and the management performance are improved,but if the long-term performance will be better and better needs to be test.From the article we know if the merger wants to be successful,it needs to consider the current market environment and the interests of the stakeholders,and to choose the right means of integration.