First Class in the New Year of Ox: Professor Jun Qian Elaborates On “Investment Bank Environment”
发布时间：2021-02-26
On February 21st 2021,
FISF started the first day of the new semester. Professor Jun Qian, Executive Dean
of FISF, gave the first class to 2020 FMBA PT+ Students at the Huangpu Campus in a splendid
way. High-spirited and vigorous, students followed Professor Qian’s lead and
learned the core concepts of the financial market, setting out on a new journey
in the new term.
In this first class, Qian focused on
the topic of “M&A theory and framework of investment banking”,
and starting from the recent acquisition trends in e-commerce and the Internet
technology industry, introduced to students some focal acquisition cases under
the background of globalization so as to further explain some basic knowledge
of acquisition. Then he interpreted the cooperative effects and integration
costs of acquisitions, competition of control rights, enforcement of
anti-monopoly laws, M&A risks and other key points. To conclude, Professor
Qian ended with the anti-monopoly investigation that the few major technology
and platform companies faced during acquisition, arousing students’ enthusiasm
for studying enterprise acquisition problems by means of integrating
theoretical framework and practical evidence.
Professor Jun Qian analyzing acquisition
cases
Under Professor Jun Qian’s guidance,
students made gradual analysis and in-depth discussions. They said the class
brought their recognition of enterprise acquisitions to a deeper level in all
dimensions, and enriched their logical framework in reflecting on financial
issues. After taking the first class, students’ passion and anticipation for
the new term was evoked by Investment Banking. We look forward to joint
efforts with you to set out on a new round of harvest journey!
After-class
reflections
Following Professor Jun Qian to have an overall view of the investment bank environment
Yingwei
Cai
student
of 2020 FMBA PT+
After the winter vacation, FISF FMBA PT+
students once again continued their cultivation journey. The first class of the
new term was the long-awaited subject, Investment Banking. In the
Huangpu campus, those familiar faces were back with full vitality, ready to set
sail.
In the class, students were high-spirited,
talking and laughing all through the process. Then the classroom came to a
sudden silence when Professor Jun Qian, wearing an Indigo slim-cut suit and a
scarlet long scarf, stepped in, looking elegant and dignified.
The investment bank environment is all about mergers and
acquisitions. Professor Qian unveiled a grand and
magnificent picture of the sophisticated world filled with entanglement of
gratitude and resentment.
Conflicts in the market. Every enterprise is striving
to grow. For the sake of their self needs, enterprises may choose to develop,
to transform, to construct ecology or to unify the entire industry, displaying
certain motives for mergers or acquisitions with other enterprises. This
is the origin and purpose of enterprise acquisitions.
Calculations in the market. Both enterprises and
individuals have their respective deploys and plans. If one enterprise holds
the key production element of another, such as the core component, then the
former will quite possibly take advantage of the weak position of the latter so
as to overcharge it. Therefore, enterprises should keep strong and independent
instead of waiting for others to offer help. Besides, in an acquisition process
involving dispersed minority shareholders, an enterprise may offer a
“hard-to-refuse” or “seemingly perfect” conditions to them in order to close
the deal quickly. But the actual case is that to balance the economic account,
shareholders that agree to the conditions earlier within the limited time may
get munificent rewards while rewards for those agreeing later may gradually
decline. It’s
a matter of expedience, an act of
incapability, and a forced-out “two-tier acquisition” arrangement.
Resentment in the
market. It
is common to see gentlemen dueling for “fair ladies”. First
two enterprises are in a romantic relationship, then a third one comes,
bringing green-eyed envy. Then a forceful fight for love, cash competitions and
public resentment ensues. Business, nothing different from love, may drive
people crazy. So how can we keep a clear head and make right life decisions?
Valuations of current status, cooperative
effects and integration costs are solid solutions.
Tender feelings in
the market. In a complete market environment, there is more than
resentment. Natural wisdom teaches us that help starts with acquaintances. This
means, financing goes to “friends and relatives” (acquaintances) first, then
banks (equity financing), and finally to the capital market (equity financing).
That’s because people who know you are more likely to offer help, financing
with collateral has lower cost, while the stock market where no one know you
costs the most. This wisdom is passed to us humans by woodpeckers, known as the
Pecking Order Theory.
A person’s heart revealed in the market. Whether investments or
acquisitions, they are all human acts, and in acquisitions, humans are just the
most difficult to estimate. An acquisition game requires rational guidance, but
more importantly requires taking non-rational factors into consideration, like
perspective taking and comprehensive judgment. This is the charm of acquisition
negotiations, and also the core knowledge that
students wish most to learn from the subject of Investment Banking.
In
the first class of the new year of ox, Professor Qian revealed a small corner
of the financial market. To know more about it,
please stay informed of the following classes of FISF FMBA PT+.
FMBA PT+ students getting new
term surprises
A senior student comments
highly of the class
“I’m a soon-to-graduate student from the
first-session class. Last year I took Professor Jun Qian’s Investment
Banking, and I’m still impressed. The class was insightful, full
of real stuff. Professor made in-depth analysis on both classic and hot cases,
covering China and the West in various fields all through the 30 years since
reform and opening-up.
Later Professor Qian became my paper tutor.
He not only guided me in writing my paper, but also cares about my personal
growth. When making life decisions, he will give me valuable advice from a
tutor’s perspective, helping me clarify my mind and thus choose a better and
more challenging career development platform. In the future, I’ll apply what
I’ve learned here to make contributions to promoting the stability of China’s
financial system with my own wisdom and strength.”
Yaohua Liu, an internal
student of 2019
FMBA PT+, Student Ambassador
The new term of the ox year starts
from the first class!
Do you want to experience the
cognitive storm
provided byFISF professors?
Do you want
to gain a series of surprises in FISF classes?
Professors
of the FISF FMBA PT+ program invites you to welcome a better self in this new
year of ox!