In the past two years, the topic of A-share mergers and acquisitions has been relatively hot, and there have been more market cases. , Various media also pay more attention. We are still very impressed when doing M&A business. M&A is a very complicated matter in terms of cognition and practical operation.
1 Looking at mergers and acquisitions from the perspective of investment banks
For example, from the perspective of investment banks, mergers and acquisitions are usually project thinking and perspective. I have written a lot of understanding of mergers and acquisitions, such as attention How to do a good job in M&A business, such as how to get projects, how to facilitate transactions, how to achieve financial advisory income, etc. This is the cognition of mergers and acquisitions from the perspective of investment banking projects.
2Looking at M&A from the perspective of investment
There is another point of view that M&A is an investment perspective, such as PE investment or public funds in the secondary market. From an investment perspective, what will M&A focus on? Investment opportunities brought about by mergers and acquisitions, such as investment exit opportunities for mergers and acquisitions, and soaring stock prices brought about by mergers and acquisitions.
3 Looking at mergers and acquisitions from a regulatory perspective
If you look at mergers and acquisitions from a regulatory perspective, it is usually easy to focus on policies and administrative licensing matters, including macro aspects, such as how to formulate merger and acquisition policies to make the market healthier Development guidance also includes the micro level, how to exercise the power of approval to complete the administrative license for mergers and acquisitions.
4Look at mergers and acquisitions from the perspective of enterprises
If you want to have an overall understanding of mergers and acquisitions, you still have to stand from the perspective of enterprises, because enterprises are the protagonists of mergers and acquisitions. Looking at mergers and acquisitions from the perspective of enterprises, mergers and acquisitions are a strategic means for the realization of enterprises, so mergers and acquisitions should be tools rather than ends.
In addition, in terms of operational procedures, mergers and acquisitions cover four stages of strategy formation, transaction completion, transaction execution and integration.
The first is the strategy formation stage.
Since mergers and acquisitions are a means for companies to realize their own strategies, it is necessary to think about which direction to go through mergers and acquisitions? Is it horizontal expansion or Longitudinal extension of the industrial chain, or use my advantages for relatively diversified expansion, or simply abandon the main business and directly do transformation? At present, there are many cases of A-share market using mergers and acquisitions for transformation, such as water pumps, Internet, and agriculture. To do film and television and so on. In fact, these are understandable. As the saying goes, businessmen have no domain, and transformation is also a rational choice for maximizing business interests. The well-known Danone Group is a world food giant. In the 1960s, its main business was not food but glass. This is also a successful example of industrial transformation through mergers and acquisitions.
The second is the transaction conclusion and execution stage.
After the strategy is finalized, it is necessary to solve the transaction problem, including the search for the target company, including the arrangement of the transaction business negotiation, and the conclusion of the transaction, namely Under the benefit balance plan, it is used for legal agreement landing. After the transaction is concluded, it enters the execution stage of mergers and acquisitions. The execution of mergers and acquisitions includes internal decision-making, external approval and transaction implementation. Internal decision-making includes the board of directors general meeting, etc., and external approval may include state-owned assets regulatory approval, China Securities Regulatory Commission administrative license, and the Ministry of Commerce involving foreign investment. Wait. The implementation of mergers and acquisitions includes industrial and commercial changes, registration of new shares of registered companies, and so on.
The final merger and acquisition enters the integration stage after implementation
Integration is actually relatively long. From the perspective of industrial logic or the impact on fundamentals, integration is the real start of mergers and acquisitions. Mergers and acquisitions include many aspects, including strategic unification, cultural integration, industrial chain combing and management coordination arrangements, etc. After integration, industrial synergy The effect began to manifest gradually, and of course there were various cases of unsuccessful integration.
So the chain of mergers and acquisitions is actually very long, why mention this chain? Here, I will zoom in on any chain link, and the details and articles are verymany. But everyone must remember that the details in any chain are not enough to represent the full picture of mergers and acquisitions, but such cognitive errors are often made in the market.
From the perspective of investment banks, many investment banks believe that M&A projects are the declaration of M&A materials. Personal views are the inertial thinking brought about by the IPO business. In my opinion, the M&A report materials are only the administrative licensing procedures of the China Securities Regulatory Commission in the external examination and approval procedures in the implementation process. If you regard this as the overall picture of mergers and acquisitions, there will definitely be problems. For example, the life process of a person from love to marriage is only limited to the certification procedures of the Civil Affairs Bureau, and it is easy to blindly blind you.
5 A one-sided view of mergers and acquisitions from a policy and regulatory perspective
Whether it is the media or the market, it is usually easy to view mergers and acquisitions one-sidedly from a policy and regulatory perspective. Inertial thinking will magnify mergers and acquisitions policies. On the impact of mergers and acquisitions, they will think that the policy environment is the market environment. In fact, to determine whether mergers and acquisitions occur or whether they occur frequently, the most important thing is commercial interests. Commercial interests are more of market factors, such as the adjustment of the industrial structure and the rise and fall of secondary market stock prices. The market sometimes feels that the approval system has slightly lowered the threshold, or the State Council has issued some encouraging policies, mergers and acquisitions should be taken for granted. In fact, the impact of policies and supervision on mergers and acquisitions is not the most fundamental. The interests of market participants.
I think that looking at mergers and acquisitions from different angles is conducive to the understanding of mergers and acquisitions. Although focusing on different angles is conducive to the execution of the job and the specific details, we still need to jump out of the details and look at the whole picture. Mergers and acquisitions will be more comprehensive and rational.
2. The internal logic of the rise of A-share mergers and acquisitions
Let’s think about the most fundamental reason why companies do mergers and acquisitions? The company says it’s my own main business. Good luck, why do mergers and acquisitions?
Now it can be described as the era of national mergers and acquisitions. A-share mergers and acquisitions are mainly concentrated on the ChiNext and small and medium-sized enterprises. The establishment of the Growth Enterprise Market is positioned as an incubator for a new economic model. But what is the status quo in China? Shengsheng has played the GEM as an integrated board for M&A. The market is unprofitable and cannot afford to be early. The booming mergers and acquisitions must have its inherent logic. Let's analyze the reasons why A-share mergers and acquisitions occurred in China. Firstly, we should jump out of China's environment and see what benefits mergers and acquisitions have for companies from the perspective of basic economic laws.
1 The logic of mergers and acquisitions from the perspective of basic economic laws
The first point is that the benefits of mergers and acquisitions are based on its value judgment ability, which can be used relatively low Buying something worth the price at a reasonable price is to make a more cost-effective investment.
For example, a company is in crisis, and the normal market fair price is 1 billion, and you can buy it for 600 million. This is the value it brings to the company. Not only mergers and acquisitions, commodities, or any investment, the so-called bottom-hunting can be realized, but it actually embodies the ability of value judgment.
The second point, the benefits of mergers and acquisitions to enterprises, we call growth sharing.
Because an enterprise is a dynamic economic entity, it can grow up from a small age. To be more blunt, if you pass and buy a target and grow into Alibaba in the next five years, this M&A must be successful from an investment perspective.
The third inherent logic of mergers and acquisitions is called industrial synergy, because after all, mergers and acquisitions are not equivalent to cash contributions.
For example, the increase in competitiveness brought about by the expansion of scale, such as the merger of Didi and Kuaidi, the original price war between the two sides broke blood, and now they dominate the world. There is also a synergy effect based on the extension of the industrial chain or cross-selling by customers, that is, similar to the merger of a photo studio by a barber shop, many mergers and acquisitions in the IT or Internet industries follow this logic.
The last logic of mergers and acquisitions is transaction arbitrage.
The arbitrage logic here is very complicated, and the most effective arbitrage is the securitization arbitrage. Especially in China, because non-listed assets are converted into listed stocks, the market has different valuations for them. For example, the price-earnings ratio of 100 times on the GEM, but the trading of non-listed assets may only be 10 times the price-earnings ratio. , Trading assets used for 10 times the price of stocks may support 100 times the market value, there will be huge securitization arbitrage space.
Regardless of the market, the profit model of mergers and acquisitions for companies cannot escape these, namely value discovery, shared growth, industrial synergy, and securitization arbitrage. The essence of value discovery and sharing growth is investment logic, industrial synergy is the logic of value creation, and securitization arbitrage is the increase brought about by financial operations. In fact, the space for securitization arbitrage in mature markets is very small. Because the degree of marketization is relatively high, there is little difference in valuation between listing or not. In addition, financial instruments or derivatives are very developed, and all arbitrage space will be eliminated.
Therefore, for mergers and acquisitions in mature foreign markets, the benefits are mostly concentrated on the logic of value discovery, growth sharing and industrial synergy. For example, foreign M&A funds will make hostile raid acquisitions and buy when the value of the company is underestimated. This is the value discovery process. Then by airborne management, improve the organizational structure of the company, or strip off bad business, the essence is the process of value creation. Finally, exit through securitization. Securitization is usually just a way to realize the realization of income, and there is not much additional income.
But A shares are completely different. There is too much room for securitization arbitrage, and most of the benefits are here. This space is large enough, what is the situation? Other things such as value discovery, shared growth and industrial synergy can be ignored. In short, securitization arbitrage will not delay making money.
What do you mean? It doesn’t matter if you buy it more expensive, because the stock is more expensive! How about the growth? It doesn’t matter, as long as there is a profit forecast to support the stock price. There is no need for industrial synergy, or even industrial relevance, as long as it can be consolidated. For example, if you open a restaurant to buy an Internet company, is there a story in the industrial logic? So my point of view is very clear. At present, almost all mergers and acquisitions in China are making money for securitization arbitrage, and the industrial logic is relegated to background and support, or It's just a story. If the industrial logic can be taken into consideration during mergers and acquisitions, this entrepreneur already has a strategic thinking and forward-looking figure in A-shares. In reality, the proportion of such enterprises or entrepreneurs is very low.
M&A under the logic of the 2A-share policy system
I think that the logic of A-share mergers and acquisitions must be based on the unique market environment in China. The securitization arbitrage space is the most important for A-share mergers and acquisitions. Important driving force, in addition to other factors, such as the basic system of IPO, the investment structure of the securities market, and so on.
Let me first talk about the characteristics of the Chinese securities market. The reason why the market becomes a market must have the most basic functions of the market. What are the most basic functions of the securities market?
The first point should be free fundraising. The company sells my rights and interests in the capital market, that is, sells shares to finance the capital. The securities market is first of all a financing platform.
The second function should be free trading. Stocks have sufficient liquidity properties. The liquidity of stocks should be based on the function of the market, not the grant of administrative power.
The third point is that the reason why the market becomes a market requires a reasonable pricing function, that is, the stock price must reflect its intrinsic value.
Based on the above-mentioned market functions combined with A-shares, they all seem to be different: First, free-raising, whether the issuance can be managed, the scale of stock issuance is managed, and the issuance price is managed. This is stock issuance. Bond issuance financing is similar. Corporate Bond Regulatory Commission will supervise you, Enterprise Development and Reform Commission will supervise you, and the Interbank Association will supervise you. In short, it seems that various administrative forces are enemies of commercial interests everywhere. This is a typical Chinese logic. Therefore, from my personal point of view, the Chinese securities market is not an absolutely efficient market, but is closer to a semi-regulated and semi-open market.
This is the status quo of the Chinese securities market. The reasons for this are very comprehensive, but it is undeniable that the future development direction is undoubtedly marketization, including the reform of the registration system, or the further loosening of the circulation field. However, under the current national conditions, this state will be maintained in the short term. Unlike other countries, its market factors will be weaker. However, this kind of control will also give China's securities market a certain peculiarity or closedness, that is, different investment and profit logic will be brought about by the peculiarities of the local environment.
A-shares are the market with the most administrative intervention, and are now almost the most active and viable market in the world. This is actually very strange. Based on the control, the securities market is not fully market-oriented. There are investment opportunities with special logic in China. A-shares are a deterministic and profitable market. The main logic is based on the price difference between the primary and secondary markets brought about by regulation.
In fact, there is a certain amount of money to make in the market, and the logic behind it must not escape two points:
Either because of the special market position formed by monopoly;
Or because of the imbalance between the supply and demand of goods formed by regulation.
To interpret the deep-seated reasons of A-share mergers and acquisitions, it is also necessary to proceed from the particularity of A-shares, and the answer must be found here. My point of view is that in A-shares, there must be a logical way of thinking about A-shares. It is not too high-minded. I always say what Wall Street is. However, many things are not feasible in the large A-shares, so use a particularly mature market to think about A-shares. It's too easy to make money. In addition, it cannot be considered that the logic of A-shares is eternal, and the A-shares are gradually transitioning to marketization. SoIt also needs a bit of universal market thinking to make trend judgments. In short, you must look down at the road and look up at the sky.
In fact, this topic is also effective when it is introduced to investment banks. As a broker, what is the premium that the special environment of A shares brings to us? It is the channel business opportunity brought by the brokerage license control, that is, the license brings us System dividend. We need to eat through the dividends brought by the brokerage license to support our team, and at the same time, we must clearly recognize that this kind of dividends exists in stages, and the subsequent development of the entire market will become weaker and weaker. Investment banks must transform to cultivate channel businesses. Outside ability. Therefore, it is necessary to lead the market half-step to be a pioneer. If you lead too far, you may become a leader. If you indulge in the dividends brought by the system, you will become a type of people eliminated.
The direct logic of the popular mergers and acquisitions of 3A-share SME boards and ChiNext
So based on this environment, we answer another question. At present, A-share mergers and acquisitions are the most popular. The direct reason is Where is the logic?
Look at the characteristics of A-share mergers and acquisitions:
First, A-share mergers and acquisitions are concentrated on the small and medium-sized boards and the ChiNext. There are several factors here:
One factor is that the ownership mechanism of the SME board and the ChiNext board is more flexible, and they are basically private.
Because state-owned enterprises are not market-oriented, apart from integrating state-owned enterprises, it is difficult for state-owned enterprises to do market-oriented mergers and acquisitions. Only in areas where the market is fully competitive are exceptions.
Why mergers and acquisitions are active on the SME board and the ChiNext is related to ownership.
The second point is related to stock prices. High stock price mergers and acquisitions are active.
Why? Because the arbitrage space is too large, it will form a win-win situation based on huge transactions and become wealth creation. game. It is not that one plus one is greater than two on both sides, but one plus one equals ten. Based on the A-share merger and acquisition, after the buyer and the seller have signed the agreement, both parties are very happy. This is the unique logic of A-shares, and this is the logic of stock prices. Therefore, when the endogenous growth of many companies is weak, they need to increase growth through mergers and acquisitions and find ways from the outside.
In addition, we need to reflect on the logic of the current A-share IPO system.
What does it depend on whether a Chinese company can be listed? I think it’s a good answer to be an investment bank. A company’s listing requires the Securities Regulatory Commission Will approve, so the threshold of the capital market is the logic of administrative approval. As for the growth of the company and whether the stock has investment value, these seem to have no direct relationship with whether it can be listed or not. You only need the regulatory authority to give you a paper approval to determine your capital market. fate.
China's screening mechanism under the administrative examination and approval system has caused companies that enter the capital market to be relatively mediocre children. As you can see, listed companies have a lot of fun, such as selling poker, selling duck necks, selling mustard, making lighters, etc... What is the industry tradition? Because the business models of traditional industries are easier to understand. You make lighters and they know how to make money at a glance. When you say Internet+, he directly says that you are a leather bag company, or makes your question uncomfortable.
The relatively small-scale companies in traditional industries mean that companies have low ceilings and therefore poor growth. You are a good boy, so you have passed the China Securities Regulatory Commission, but fund managers don’t like good children. They like wild children with growth potential. It means that the investment logic of the market and the logic of entry are distorted. To adapt to this distortion, most companies will rationally choose the extensional expansion method of mergers and acquisitions. The main reason is that there is no way to make endogenous self-adjustment. First of all, the ability is insufficient. In addition, it can't keep up with efficiency.
The lack of self-transformation ability is understandable. Listed catering companies do not know how to engage in the Internet, so they can only use mergers and acquisitions. There is also the issue of efficiency. Growth through endogenous growth is too slow. In the environment of China, three years of product research and development, three years of performance, and another two years for the market to recognize you. Eight years have passed, and the stock price has been reflected. What does eight years mean? I thought that there have been two rounds of bull-bear conversion. When your performance is reflected, others have already achieved a leap-forward development by financing a few backs of capital.
Also in China, your endogenous growth is not only a matter of efficiency, but also a lot of uncertainty in the result.
For example, after three years of research and development to make scientific research results, or to develop new products, what do you face? Faced with the unfavorable situation of China's intellectual property protection, there is a terrible term in China called "cottage". It is entirely possible to make wedding dresses for others, and endogenous growth is still difficult. Why is it impetuous in China? I think it is an instinctive reaction because of the uncertainty brought about by the environment. Everyone will turn to mergers and acquisitions. Mergers and acquisitions are very straightforward. The financial gains in the consolidated statements formed by mergers and acquisitions will be very fast, and the boost to stock prices will be very fast. News of mergers and acquisitions will be released.The price will rise.
Another point is that China’s stock market is a unilateral market. The unilateral market means that the balance mechanism formed by short selling is insufficient. The whole market is looking for good news and speculation.
So the merger is completed and it can rise by five boards. If the announcement fails, it can still rise by three. The unilateral market means that everyone can make a profit when the stock price rises. Although there are stock index futures, individual stocks are shorted. It's not so smooth.
So there is a very interesting word in the Chinese stock market, called concept. The word concept is objectively irrelevant, but something that can cause stock price fluctuations is not true, but everyone should really play it because it will have an effect. When Obama is re-elected, Aucma will have its daily limit. This logic is ridiculous, but it does work in China.
It turned out that we found a phenomenon when we were doing projects, such as a GEM company with a valuation of several billions, and a few orders turned into tens of billions. What's going on? Later, it was discovered that mergers and acquisitions brought about the growth of merger profits. Based on the growth brought by mergers and acquisitions, it would also push up the valuation multiples. The promotion of mergers and acquisitions on market value and stocks was a geometric effect. This efficiency made Chinese entrepreneurs excited. . Originally, they were willing to do their own businesses. Many people were particularly obsessed. Because they were obsessed with doing business, they were moved by the Securities Regulatory Commission before they went public. In the end, they found that the obsession did not impress the fund manager.
The four-sector rotation companies have no role in the capital market through mergers and acquisitions.
With the increase in China’s securitization rate, there are more and more listed companies. Everyone who makes stocks will know that Ten years ago, there was a term called "sector rotation." Because the number of stocks is limited, real estate speculation today will be speculative tomorrow. Everyone has a little patience. All sectors seem to be available in rotation.
But now there is no such word, because there are too many stocks and too little capital, and the wheel is not moving. If you do not reflect your value and voice through mergers and acquisitions in the capital market, you will easily be forgotten. When I was giving lectures, many people handed out business cards, saying that I was a listed company, and I said "Ah, fortunately!" In fact, I had never heard of it in my heart because there were too many listed companies. Therefore, in China's current securities market, the smell of wine is also afraid of the deep alleys.
5 The logic of the seller of mergers and acquisitions
The logic of the above mergers and acquisitions is more from the perspective of the buyer, so from the perspective of the seller:
Through mergers and acquisitions, it is still possible to maximize commercial interests. That is, it is a more cost-effective business to sell the company. The so-called nothing is not sold, only the price that is not sold.
Seven or eight years ago, he did a single-industry M&A project. The target company's profit was about 30 million yuan, and it was sold to a listed company at a valuation of 300 million yuan. The shareholders of the target company seem to us to be pretty awkward. They live in Huilongguan and drive Santana to work, and the founders and shareholders only pay 500,000 yuan each year. Later, the company exchanged shares in a listed company at a price of 300 million yuan. When the shareholding was reduced, the market value quadrupled. Everyone had a net worth of hundreds of millions. They immigrated to Canada and New Zealand one after another, and their cars, houses and wives were all replaced. , Life is different from then on.
There is also the problem of the succession of the rich second-generation in traditional Chinese industries;
Many older entrepreneurs hope to send the rich second-generation abroad one after another, how about some of them who have not learned English? But the leisurely life abroad has learned. After returning to China, I saw that my dad was reluctant to take over in his stupid industry. He usually made a simple request. I wanted to learn from the national husband, Wang Sicong, and offered me a few hundred million yuan in investment.
The rich second generation is unwilling to take over because of the growing environment. In addition, the class of professional managers in China has not formed, and the older entrepreneurs have to sell the company.
In addition, the new generation of entrepreneurs is more able to accept the logic of selling the company after it is raised;
Including the Internet, film and television and game industries, entrepreneurs will do well the day they set up the company Prepared to sell the enterprise.
There is also the withdrawal request of PE shareholders.
Based on the national PE, many corporate PEs are shareholders inside, so the withdrawal of PE will form a very strong force in promoting mergers and acquisitions. At first, PE did not realize the benefits of M&A exit, and later discovered that although the price of M&A is not as high as IPO, its capital turnover efficiency is relatively high. As a result, there has been a growth fund dedicated to the exit of mergers and acquisitions, which is called M&A funds.
Regardless of whether it is based on the market or policy, based on the buyer's willingness or the seller's realization and exit, mergers and acquisitions in A shares have a very rational motivation.
3. M&A Practice: Skills and Games of Matchmaking Transactions
Let me talk about another topic, how to look at M&A operations, trading and transaction structure from the perspective of investment banks.
I said that mergers and acquisitions are actually very fun, the first one is related to huge commercial interests. Those of us who are doing mergers and acquisitions sometimes feel quite self-worthy. When we go back to our hometown and post a little bragging, brothers and I toss are all billions of big things, and I feel that it is good.
There are also mergers and acquisitions that require compliance operations, and the design of the plans inside requires professional skills. One thing is big, the other requires meticulous work, and one thing is a game between people. It will involve human and psychological things. To be more blunt, you have to help the best elites in society fight against others, provided that you have to have a little eye, this is something fools can't do. Another point is that your three views must be correct, because entrepreneurs are not easy to fool, and in front of huge interests, their defensive psychology is very strong, you can not be too thief. If you don't trust you, this can't be done.
M&A transactions require very high quality of people, and professionalism must have a very transparent plan to lead everyone to a win-win situation. Second, it must be positive to show personality and values in the balance of interests. Too chicken thief has no one to trust, no matter how strong the ability is, it is not good. Therefore, a successful trader must focus on character and ability. It's best to be a smart and honest person who looks loyal and knows the truth.
This balance is actually very difficult to grasp. If you do mergers and acquisitions for a long time, people are easy to split and entangle, because there are too many facts in your mind, but mergers and acquisitions are very difficult. Because most mergers and acquisitions cannot be done, you must be in awe of mergers and acquisitions. I have been doing M&A business for 14 years, but I still don't dare to speak easily. I feel that many cases cannot be done, and even some are afraid to touch them.
You think both parties will be interested in each other, but both parties just look down on it. The two parties are interested and most of them are unable to negotiate. Most of the deals concluded are messy in the integration. Therefore, the failure rate of mergers and acquisitions is very high. Although some people say that the world's top 500 companies are the products of mergers and acquisitions, not every single merger can ultimately succeed.
In China, there are two types of people who understand mergers and acquisitions as relatively shallow:
One type is investment bankers under the license business within the system. I don’t think I need to participate in transactions for mergers and acquisitions. Just make the materials.
The other type is the brokers of the Jianghu school. They are used to simply picking up supply and demand information. As long as there are ones that are bought and sold, they will be introduced.
In fact, supply and demand information is the premise of the transaction, but there is real supply and demand, and there are still thousands of miles away from the conclusion of the transaction. Even if you encounter it, your role in it is only information The role of transmission.
Like buying a lottery ticket, whoever is bullish can win the prize by giving you a number, so it’s definitely bullish. If someone tells you that the lottery is in that position, will you divide your 5 million into 2 million? No, at most I will invite you to dinner. Therefore, the value manifestation in the M&A process needs to be judged by the participants. It is very difficult to conduct mergers and acquisitions just by transmitting supply and demand information. Either you can’t do it for a long time, and you will deny yourself, thinking that you are EQ, IQ, or bad luck? Or it has little to do with you. If your judgment is not accurate enough, you will be out of balance in it and feel everyone I'm all sorry to you.
What qualities should a real M&A transaction trader possess?
First, you need to have knowledge of the industry Preliminary value judgment ability.
To be more straightforward, you need to be able to know which companies are good and which are bad. This must focus on the industry, because no one is a generalist.
The second one, through your matchmaking, anticipate management and balance of interests;
As the host of the transaction, you can lead both parties to a win-win situation. You must be the host, you can’t Be an audience.
And you need to have the ability to allocate resources;
If you need money, I can bring in money for you. If you are like this, you can finally get your suitable business interests in it. , This world is fair, all your gains must be your contributions and your advantages finally realized. Using information asymmetry to make money is essentially cheating, which is very difficult in this era.
This is some of my feelings in the middle of the business process. In the book, I also mentioned the role of real financial advisors in mergers and acquisitions. It can be used for materials, coordination with the other party, execution of transactions, or control of corporate strategy. The work of procedures and materials is the strongest and the simplest, while business coordination is relatively difficult, because after all, project coordination must be completed under a dynamic timetable. The most difficult thing is to be a trader. You need to use your professional knowledge to really match some transactions together. This requires you to have a strong judgment on matters, rules, and people. There must be a lot of accumulation, including accumulation of business technology, accumulation of age and experienceand many more.
There is another topic. In trading, you must have a particularly deep understanding of human nature. Because of the people I face every day, the game between them, how can you move the two sides with the greatest possible probability of achieving the transaction, here must be skills.
From the perspective of my personal experience, I am afraid that the transaction will go too smoothly and go too fast. Some people say that it is strange, people hope everything goes smoothly, why do you always have no difficulty creating difficulties.
Let me give an example. There was a single transaction in which a listed company and a non-listed company negotiated. The two parties hit it off as soon as they saw it. They were drunk at the time. I think the transaction is too fast, and the two sides have to have a game back and forth. I watched the scene personally because I was worried. Sure enough, on the third day, the seller came to me to chat and kept asking two questions: "Xiao Lao, is it okay for my company to sell on terms? I said it’s good! Is my independent IPO definitely out of play? I said it’s quite difficult. Yes."
In fact, I am very pessimistic in my heart. What does this mean? It means that the boss is playing drums in his heart. I called all the intermediary agencies over and made a request, all the questions were concentrated on me, and then communicated with the boss. Because I know that the intermediary agencies are sent by the buyer, and many of them are compliance issues from the perspective of the Securities Regulatory Commission. If you give this question to your boss, you will definitely think that the other party should bargain if you find something wrong, and it will evolve into a game problem in the transaction. Three weeks later, I said to the other’s boss on the phone: "I'm sorry, you can withdraw the person and stop doing it." The other boss was very surprised, saying what's the matter with the brother? The errand or the poor? The seller said nothing. Bad, I didn't think about it.
This is the psychology of human nature. For example, when you chase a girl, you agree to it the first time, and you will be notified of the date of marriage the next day. How would you react? You must run. Why set some difficulties in the transaction and make the transaction anxious will bring stability of the result. For lesbians to buy clothes, the seller quoted a price of 500 yuan, and asked if 300 would sell them? If they wanted to sell them, they turned around and left. Usually there is a very intense process of bargaining, which takes a long time and the atmosphere is tense. When will the transaction be concluded? You say no to buy, go to the corner and ask you not to come back! The process of the game will form a psychological relationship between both parties. Sense of security.
So M&A matchmaking not only requires professionalism, but sometimes requires a certainty of people's psychology. We like to arrange the negotiation at ten o'clock in the evening when we are negotiating a deal. The eyes were all green the next day. In the end, everyone said that it should be so, but it was hard to come by. After signing an agreement, they all went to bed. Everyone will think that this transaction has gone through such a fierce game, and it must be the end. In fact, it is staying up late and it will form a psychological hint that the result is difficult and stable.
Strategically calculate big accounts, and tactically use small accounts to cultivate transaction stability. A single merger can reach a fragile balance. The two parties in the transaction consider this matter acceptable, but they are not particularly satisfied. This state is the best state. If one party is happy, a sad face is problematic. From the perspective of financial advisors, investment banks provide M&A services not for maximizing unilateral interests, but for short-term and long-term interests and strategic balance.
In other words, mergers and acquisitions are not easy, regardless of professional knowledge, human nature, profit orchestration are very demanding. To do a good job in mergers and acquisitions in China, first of all, there must be ethics, a bottom line, and second Grow together with customers, have a long-term mentality, and accumulate professional knowledge in business. In short, I think business ability accounts for three to four points, and character values and ways of thinking account for six to seven points. In this way, in China's complex market, you can survive for a relatively long time.
M&A financing financial advisor 13028853163 Mr. Wang