A Case Study Of Overseas Acquisition Of AssetMark By Huatai Securities

With the international development of the Chinese economy,more and more Chinese companies are “going out”.Along with the unstoppable "going out" trend of domestic enterprises,it is necessary for securities companies to provide corresponding overseas financial services,which will inevitably prompt domestic brokers to accelerate overseas distribution and actively promote international development strategies.As one of the top brokers in the domestic brokerage industry,Huatai Securities has fully seized the good opportunities for brokers to develop overseas.In 2016,it successfully acquired the American financial technology company AssetMark,which has taken a key step in overseas layout.Through this successful overseas M&A case study,it provides some inspirations for domestic brokerages overseas mergers and acquisitions.Firstly,based on the introduction of the basic situation of M&A and the M&A process,this paper analyzes the case from four perspectives: M&A price,M&A motivation,M&A performance and M&A risk.Regarding the price of M&A,this article analyzes the M&A price through the Basic Assets Law and believes that the M&A price is still acceptable.Regarding the motives of M&A,from the perspective of the external environment and its internal development,the former is mainly the internationalization of China's economy,which requires the securities firms to provide financial services and the securities industry needs to grow and develop itself;the latter is mainly Huatai Securities' own international development strategy and wealth.Manage the need for business transformation and achieve synergies.With regard to the performance of mergers and acquisitions,this paper analyzes short-term and long-term performance.In view of short-term performance,this paper finds that the company's stock price shows a negative excess return rate after the merger through the event analysis method,that is,<0,indicating the market's negative reaction to the M&A event.Through the use of the financial indicator method,the horizontal and vertical analysis of the solvency,operational capability,profitability and growth ability of Huatai Securities before and after the merger and acquisition,the results show that the company's solvency before and after the merger has not been greatly affected,The company's short-term solvency has been good;the company's operating capacity has not changed abnormally before and after the merger,but compared with the same industry,the company's operational capacity needs to be strengthened;and in comparison with Guotai Junan,Haitong Securities and GF Securities After the completion of the merger,Huatai Securities' s profitability and growth ability have achieved a turnaround,compared with the same industry has significantly enhanced.Regarding the risk of mergers and acquisitions,this paper believes that the risks faced by the merger mainly include the risk of goodwill impairment and cultural integration.Based on the above case analysis,after summarizing the successful experience of this case,this paper puts forward three inspirations: First,domestic securities companies should carefully choose the M&A targets that are consistent with their own development strategies;second,when evaluating the effects of mergers and acquisitions,Focus on long-term performance concerns;third,domestic securities companies should focus on integration after the completion of mergers and acquisitions,especially cultural and personnel integration.