As the integration expectations draw closer, Guolian Sec and Minsheng jointly hold a restructuring forum

Although the integration process of Guolian Securities and Minsheng Securities has not yet been completed, the two institutions have already begun more business collaboration and connections.

According to Wall Street News·Xinfeng, Wuxi Guolian Group held its first investor conference and the 2024 IPEM International Private Equity Investment China Forum on November 7, where the M&A and restructuring session was co-hosted by Guolian and Minsheng securities firms.

Regarding the highly focused M&A business in the industry, Guolian Group President, Guolian Securities Party Secretary, and Minsheng Securities Chairman Gu Wei stated that both institutions attach great importance to M&A and restructuring business. They are currently closely following regulatory strategic guidance and adjusting their business focus and resource allocation in response to market changes.

Gu Wei mentioned that the two securities firms will fully seize the rare policy opportunities, work in alignment with regulatory authorities and exchanges, and collaborate with major intermediary institutions, investment institutions, and financial institutions.

"On the basis of deepening regional focus and refining industry expertise, we will continuously improve our practice quality and professional service capabilities, promote the rapid implementation of more high-quality projects that meet policy requirements, and jointly create a favorable market ecology that supports high-quality industrial mergers and acquisitions," Gu Wei stated.

At the conference, Zhang Yongwei, President of Dongzhou Asset Appraisal Firm, shared practical insights on the evaluation of listed company mergers and acquisitions, introducing commonly used exit multiple models and RNPV models, considering the characteristics of continuous R&D investment, relatively slow turnover, and higher risks faced by technology innovation enterprises.

Yang Bin, President of Shanghai Science and Technology Innovation Fund, pointed out that the S fund currently has significant growth potential in allocation value. The S strategy complements industry mergers and integrations, helping to select and support outstanding new productivity companies to enter the capital market.

"The private capital in the primary market has gained effective exit channels beyond IPOs, which helps private capital recover investments and operate healthily, preparing for the next round of national industrial development direction," Yang Bin said.

Relevant responsible persons from Guolian and Minsheng securities stated at the conference that after the introduction of the "New National Nine Articles" and "Six Articles on Mergers and Acquisitions," the two securities firms will focus on enhancing their industrial merger and acquisition service capabilities, specifically including:

First, leveraging the large number of existing listed and pre-listed company client resources accumulated by the company, fully utilizing the role of transaction intermediaries to help listed companies find quality assets and assist unlisted companies in seeking exit opportunities through listing.

Second, continuously strengthening the business collaboration of "investment + investment banking + investment research," improving professional judgment capabilities regarding industries, providing clients with scientifically reasonable transaction plans, and enhancing the ability of investment banks to facilitate mergers and acquisitions.

Third, continuously changing the mindset and working habits of the investment banking team regarding standardized models for IPO business, and actively guiding investment banking personnel to explore mergers and acquisitions business.

Fourth, under the leadership and strong support of the Wuxi Municipal Party Committee and Municipal Government, based on resource endowments, deeply cultivating Wuxi and striving to assist in the industrial transformation and upgrading and high-quality development of Wuxi.

It is reported that Guolian Securities and Minsheng Securities will further hold corresponding merger and acquisition summits in the fourth quarter of this year around fields such as biomedicine and new energy, promoting merger and acquisition opportunities to clients.

On September 27 of this year, Guolian Securities announced that its restructuring application with Minsheng Securities had been accepted by the China Securities Regulatory Commission. As related matters progress, the integration of the two securities firms is expected to accelerate further