Since 2024, mergers and acquisitions have been significantly active. With the release of the "Eight Articles of the Science and Technology Innovation Board" and the "Seventeen Articles of Venture Capital", the mergers and acquisitions plans of listed companies have been released one after another, and the industrial mergers and acquisitions that master the core "hard technology" and represent the new quality of productivity are pinned on by the market. Different from the previous rounds of mergers and acquisitions, the current M&A market is more prominent in the main line of industrial integration, industrial logic and collaborative increment have become the main theme of the M&A market, and a new round of industrial mergers and acquisitions serving scientific and technological innovation and industrial upgrading is gradually heating up.
It's not easy to get a deal done. On the surface, it is the cooperation between buyers and sellers, which is essentially a process involving the interests of multiple parties, and is extremely lengthy to balance psychology and expectations, in which intermediaries such as financial advisors, lawyers, and asset appraisers play a key role in promoting the operation of the transaction, they not only assist in designing the transaction structure to ensure that the transaction process is legal and effective, but also need to be well versed in the logic of industry integration, understand and realize the demands of multiple parties. It can be said that mergers and acquisitions are an art of multi-party games.
In this episode, Lao Zhiming, member of the Huatai Joint Executive Committee and head of the company's M&A business, together with Lu Jiegang, Vice President of Zoomlion Appraisal Group, Mu Jian, Partner of Haiwen Law Firm, and Ruan Chao, founder of boutique investment bank Wenyi Fuxin, cut from the cutting-edge changes in the M&A market, talked about the complexity of the market and human nature from the links and difficulties in M&A transactions, and frankly exchanged the thinking behind decades of M&A experience.
People chatting
Mu Jian, vice president of Lujiegang Zhonglian Appraisal Group Co., Ltd., partner of Haiwen Law Firm, Ruan Chao, boutique investment bank, founder of Wenyi Fuxin
Member of the Joint Executive Committee of Lo Chi Ming Huatai
Timeline 05:15
The M&A market is often enthusiastic, but it is not easy to get a deal
08:00
The underlying equity structure is complex, the counterparty demands are diverse, and the difficulty of multi-party game increases
10:45
PE firms participating in M&A transactions need to strike a balance between interests and rules
14:25
Small-capitalization listed companies transform through mergers and acquisitions, and opportunities and challenges coexist
19:03
The valuation of an M&A transaction should reflect the value of integration and synergy
28:55
The early identification and resolution of legal risks provide a guarantee for the realization of business interests
33:33
It is not easy to match mergers and acquisitions, and the success rate of rigid demand transactions is high
35:00
Professional empowerment and openness are the keys to gaining the recognition and trust of our customers
44:35
Transactions and integration are not easy, and companies have their own logic and starting points for deciding on mergers and acquisitions
47:52
M&A based on the logic of industrial integration is at the right time, and finding targets is also a process of understanding one's own shortcomings
50:07
Financial results are not the only indicator to evaluate the success of mergers and acquisitions, and the accumulation of experience is also a gain
51:45
Integration runs through the deal, and less-than-expected integration is one of the reasons for the failure of M&A
54:50
M&A is not a simple financial acquisition, but the integration of industry, people and culture
59:00
M&A is an all-round, multi-level game and balancing art
Taidu Classroom
"Eight Articles of the Science and Technology Innovation Board":
On June 19, the China Securities Regulatory Commission (CSRC) issued the "Eight Measures on Deepening the Reform of the Science and Technology Innovation Board and Serving the Development of Scientific and Technological Innovation and New Quality Productivity", referred to as the "Eight Measures of the Science and Technology Innovation Board" in the industry. Among them, it is proposed to support the listed companies on the Science and Technology Innovation Board to carry out mergers and acquisitions and integration in the upstream and downstream of the industrial chain. Improve the inclusiveness of the valuation of mergers and acquisitions, and support the acquisition of high-quality and unprofitable "hard technology" enterprises by companies listed on the Science and Technology Innovation Board. Enrich the payment tools for mergers and acquisitions, and carry out research on installment payment of share consideration. Support listed companies on the Science and Technology Innovation Board to focus on improving and strengthening their main businesses and carry out mergers and acquisitions.
"Seventeen Venture Capital":
On June 19, the General Office of the State Council issued the "Several Policies and Measures to Promote the High-quality Development of Venture Capital", which is referred to as "Seventeen Venture Capital" in the industry. In terms of innovating exit models and establishing diversified exit channels, the "17 Venture Capital Articles" propose to support the development of M&A funds and venture capital secondary market funds, optimize the business process and pricing mechanism of private equity fund share transfer, and promote the pilot distribution of shares in kind. The "17 Venture Capital Articles" also proposes to give full play to the main board of the Shanghai and Shenzhen Stock Exchanges, the Science and Technology Innovation Board, the Growth Enterprise Market and the National Equities Exchange and Quotations (Beijing Stock Exchange), the regional equity market and its "specialized, special and new" special board functions, and broaden the exit channels for mergers and acquisitions; Support eligible listed companies to raise funds through the issuance of stocks or convertible bonds to acquire technology-based enterprises, and expand the investment of M&A loans in the field of scientific and technological innovation.
Production team
Editor-in-Chief: Yuan Ruiyang
Project Coordinator: Wei Ye
Production: Zhang Junyue Sound Design: Shao Min Program Operation: Millet Grains
This program was recorded on June 12, 2024, and this podcast does not guarantee the timeliness, accuracy, and completeness of the data information cited during the broadcast.
Legal Notices
This podcast is not a publishing platform for the research report of Huatai Securities Co., Ltd. (hereinafter referred to as "Huatai Securities"), which is intended to provide the public with macro, industry and market hot spot interpretation, and does not constitute Huatai Securities to carry out securities investment consulting business or provide any investment advice or investment analysis opinions. This podcast does not form the basis of any contract or commitment, and the subscriber is not regarded as a customer of Huatai Securities because of any simple subscription to this podcast. Before subscribing to this podcast, any reader should make their own assessment of the appropriateness of receiving relevant push content, and must seek guidance and interpretation from a professional investment advisor if using the content contained in this podcast. The content of this podcast may involve the interpretation of Huatai Securities' published research reports by Huatai Securities analysts, or forwarding or excerpting part of the content and views of Huatai Securities' published research reports, and the complete analysis should be subject to the complete research report on the date of release. Subscribers may be construed due to a lack of knowledge or interpretation of the full report. For the full content, please refer to the full report published by Huatai Securities. Regarding the remarks of the guests involved in the content of this podcast, Huatai Securities has reminded the guests in advance that their remarks and information sources should be legal and compliant, and must not disclose inside information, material undisclosed information of listed companies or other sensitive information, and shall not infringe on any legitimate rights and interests of third parties. The remarks of the guests in the content of this podcast only represent the personal opinions of the guests, and do not represent the position of Huatai Securities, nor do they constitute investment advice to readers. Huatai Securities does not make any express or implied guarantee for the accuracy, reliability, timeliness and completeness of the information contained in the text, audio, pictures, links and other forms of this podcast. The opinions, opinions, and predictions expressed in the content of the podcast are solely those of the date of the audio recording. Such opinions, assessments and forecasts are subject to change at any time without notice. Under no circumstances does the information contained in the text, audio, pictures, links and other forms of this podcast constitute investment advice to anyone. Subscribers should not rely solely on the content of this podcast as a substitute for their own independent judgment, and should make their own investment decisions and bear their own investment risks. Huatai Securities and the program guests do not assume any form of responsibility for any consequences caused by the use of this podcast content. The copyright of all content in this podcast is owned by Huatai Securities. Without the written permission of Huatai Securities, no institution or individual may forward, reprint or partially reprint, publish or quote any content of this podcast in any form.
This program is produced by Huatai Securities, produced by JustPod, and launched simultaneously on Small Universe, Himalayas, and Apple Podcasts.