"Boss, there is one more thing I want to report to you. Our negotiations with the supermarket are going very smoothly. Their North American shareholders are willing to sell us 80% of their shares, but the British special purchasers are not willing. , in this way, we can only compete with Te De Gou for power by joining forces with other shareholders.”
"Can our purchase price be increased?" Feng Yu asked.
When acquiring a business, you must also measure the company's future profitability, how many years it will take to recoup the investment, and how much profit it can bring to the company in the coming years.
Usually this profit margin can be compressed, which means that the purchase price can be increased.
Of course, there is a reserve price, which cannot be exceeded. If it is exceeded, you will lose money, and then it will be very uneconomical to acquire it.
"It can also be improved by two percent."
Judging from the market value of those companies, an increase of 2% is not particularly large and may not affect the decision to purchase specifically.
The market capitalization of that supermarket group is only about 10 billion US dollars. If Te Deji purchases only 50% of the shares and increases the purchase price by 2%, it will increase the price by 100 million US dollars.
Compared with the profits that the supermarket group can create and its impact on the market, US$100 million is obviously not able to impress the Special Purchasing Group.
"Can't we continue to improve?" Feng Yu asked with a frown.
"It is okay to continue to increase, but after measuring this year's market, we believe that the economic situation this year will not be very good, and it may last two or three years. After two or three years, no one knows what the situation will be. Continue to increase the purchase price, It’s very possible that we won’t see profits for several years.”
Ralph's analysis is correct. The U.S. economy will definitely be severely affected, and many people will go bankrupt. How can there be so many people going to supermarkets to shop
Then the supermarket's turnover and profits will inevitably decline, and the payback period for this investment will become longer.
Investing 10 billion U.S. dollars does not mean earning back 10 billion U.S. dollars, but also calculates inflation, average economic growth rate, etc. In other words, the capital of 10 billion U.S. dollars will be recovered in 20 billion U.S. dollars after ten years. Only dollars are called back, and then money is earned.
"Have you calculated the costs that this supermarket group can save if it merges with Taihua Supermarket Group? Have you calculated the effect that this supermarket group will have on the expansion of our other retail businesses?"
Ralph shook his head: "Boss, isn't this supermarket group run by Fengyu Holdings Group?"
"No, this will be merged into Taihua Supermarket Group, so some relevant data need to be recalculated. You can contact Liu Chuanzhi about this."
"Ralph, the retail business is not the core business of Fengyu Holdings Group, nor are automobiles, nor electronics. Our core businesses are financial investment, cultural entertainment industry and technology, and may also include music electronic products and Sixth Sense. Special company.”
"Taihua Holdings Group is involved in machinery manufacturing, retail, medicine, electronic products, electrical appliances, real estate, etc."
"Although we are a diversified development group company, we should also have some focus. The two holding groups should cooperate with each other rather than compete with each other."
There are too many diversified group companies in the world, and the diversification of many companies can even cover most of the industry categories in the world. But in comparison, those that focus on investment and development in several directions will rise faster.
They are all Feng Yu's companies. Wherever they make money, Feng Yu makes money. But it's different for Ralph and the others. Making money from Taihua Holdings Group obviously cannot increase his income.
But the boss's words are orders. Although he is a little reluctant, he will not refute them.
Anyway, his life has undergone earth-shaking changes since he followed his boss. There are very few people at his age who have become executives of Fortune 500 companies.
What's more, the subsidiaries of Fengyu Holding Group are among the Fortune 500, such as Amazon Group.
As long as you follow the boss, you will have more opportunities to make money in the future.
"Boss, there is another question. For the acquisition of the automobile business, we can resell it to Taihua Holdings Group. The upfront funds are also advanced by Huaxia Group. But for this supermarket group acquisition, we have a shortfall of nearly 7 billion US dollars."
"Although it is possible to allow subsidiaries to hand over part of their profits in advance, it is not enough at all. How should we solve the problem of funds?"
Originally, the subsidiaries of Fengyu Holdings Group that turned over the most profits were Fengyu Consulting, followed by Sixth Sense, and Amazon. As for subsidiaries such as Guge and Facebook, they still have little profit.
However, Fengyu Consulting, the subsidiary's largest source of income, is currently making major investments and has mobilized all funds. It will definitely not be able to turn over profits this year. Only the portion turned over to Sixth Sense and Amazon is simply not enough.
Under normal circumstances, those subsidiaries hand over profits at the end of the year. Even if they are collected in advance, the current problem cannot be solved.
Ralph actually wanted to say that since the acquisition of the supermarket group was for Taihua Holdings Group, Taihua Holdings Group should be allowed to hand over the money first.
But he felt that since the boss made such a large investment in Fengyu Consulting, I'm afraid all the funds from Taihua Holdings Group have also been transferred away, right
Feng Yu thought for a while, this was a problem. It is said that by the end of next year, when his investment is recovered, he can make a large profit, and this little money is not a problem at all.
But now, he is faced with two choices.
One is to let Fengyu Consulting invest less. Naturally, there will be sufficient funds in the account here. However, this kind of opportunity only comes once in many years. Feng Yu feels that it is a pity to give up.
Another way is to borrow money first. You definitely can't borrow so much money from someone, so you can only borrow money from a bank.
Taihua Holding Group plans to first obtain a mortgage loan from Minsheng Bank for the company's expansion and development, but Fengyu Holdings Group cannot continue to borrow from Minsheng Bank. Minsheng Bank does not have that much funds.
“Go talk to the bank about a mortgage.”
"Boss, the interest rate is very high now, and many assets are also at a low ebb, so mortgage loans are not very cost-effective." Ralph reminded.
"It doesn't matter. You can earn back the interest money. By the way, I will take care of this matter. Maybe you can get a loan from some commercial banks in China. I will return to China in two days and let you know when it is done."
The interest rate on loans is very high, and other banks have to earn about half of this interest. It would be better to earn it from banks in China than from banks in the United States. It’s just a loan in US dollars, and with such a large amount, it may be a bit troublesome.
… To be continued.