Analysis Of Shanghai International Trust Value Promotion Of Pudong Development Bank's Merger And Acquisition

Merger and acquisition is one of the important ways for enterprises to grow rapidly.It has the advantage of time.Merger and acquisition can enable both parties to share resources,spread the costs equally among more products,and reduce costs.At the same time,merger and acquisition can expand market power and increase market share.At present,in the process of comprehensive management transformation of commercial banks,commercial banks have begun to try to acquire shares or hold shares in non-bank financial institutions through mergers and acquisitions,integration,so as to realize comprehensive management.Aiming at the question of whether the value of non-bank financial institutions acquired by banks has been improved,based on the study of Shanghai International Trust acquired by Pudong Development Bank,this paper analyzes the internal and external causes of the acquisition of Shanghai International Trust.The internal causes are that Pudong Development Bank and Shanghai International Trust complement each other and acquire Shanghai International Trust to realize a comprehensive management strategy.The reason is that SASAC reform is used to realize the integration of financial resources and actively implement the relevant requirements of the State Council on strengthening shadow banking supervision.The financial index vertical comparison method and the equity cash flow discount method are adopted,and the financial index vertical comparison method is used to analyze whether the growth ability,profitability and wind control ability are optimized after the acquisition of Pudong Development Bank.The equity cash flow discount method verifies that the acquisition brings value enhancement.The method calculates the equity capital cost by predicting risk-free interest rate and risk premium,collects cash flow before the acquisition,and forecasts the future equity cash flow of Pudong Development Bank to calculate the value of Pudong Development Bank.In the valuation of commercial banks,due to the complexity and uncertainty of the liabilities of commercial banks,the equity discounted cash flow method has more reference value than the discounted cash flow method,which improves the accuracy of valuation.The results of the study are as follows: Judging from the performance of Pudong Development Bank's stock market,investors are generally positive towards the merger and acquisition of Pudong Development Bank;Judging from the valuation results of SPDB,the value of SPDB has increased after the merger,which is reflected in the financial and nonfinancial indicators of SPDB after the merger.The non-financial indicators are the optimization of governance capability of SPDB,the financial indicators are profitability,enhancement ofwind control capability,optimization of income structure,and increase of intermediate business income.Based on the analysis,relevant experiences of merger are given: complementary advantages of both parties are one of the preconditions for merger,the application of the existing separation scheme,the promotion of macro environment,and enlightenment.