It was just noon when the plane arrived in Hangzhou. Li Mu, Lin Qingya, and Ding Zhenglin first checked into a high-end hotel in Hangzhou in a low-key manner. After they went back to their rooms to put away their luggage, they immediately went to Li Mu's room to discuss more specific negotiation strategies. .
Zhao Xianliang has already introduced the situation of Hikvision to Li Mu. Generally speaking, it is a hard-earned business made by a bunch of awesome people. They have no money and the prospects are not clear enough. They are looking for someone to invest. Summary Just one sentence: Lack of money is the main theme of Hikvision.
As Li Mu is currently the most active entrepreneur in the domestic high-tech industry, his influence on the entire industry goes without saying. It can even be said that no high-tech enterprise across the country will refuse investment from Li Mu.
However, the most critical issue is: Li Mu is not an investor with cash alone, but a demolition team with money and knives.
He didn’t want to simply invest in Hikvision. In that case, he could only exist as a shareholder of Hikvision and enjoy the dividends from Hikvision’s development, but he would not be able to control Hikvision and make it To develop in the direction you want, the most important thing is that if Hikvision is not your own legally, then you will not be able to re-integrate it.
The so-called new integration is to integrate Hikvision into a new plate and conduct a comprehensive merger and acquisition.
It is indeed not easy for Li Mu to pay for the establishment of a new plate, and for Hikvision to drop its original plate and add it to its own new plate, turning them from the original owners into contributing shareholders.
If Hikvision does not agree, or the price is too high, then it will have no choice but to acquire other companies similar to Hikvision and become the most direct competitor with Hikvision.
If all the companies that are trying to merge are compared to ordinary people who own homesteads, then companies like Li Mu who are trying to merge are demolition teams and developers.
Some people are so eager to see the demolition that they can't wait to see it. As soon as the demolition team comes, they immediately negotiate terms and agree to move their families, cash out their houses and land, and then move to new developments. Negotiate a few apartments; if the negotiation fails, then settle for a permanent home until more favorable conditions are introduced.
But some people just don't want to be demolished, and would rather die than surrender and continue to live in this hot land. For developers and demolition teams, the only thing they can do is: if they can do it, they will demolish it, and if they don't, they will take a detour.
At present, Li Mu, as a demolition team, has come to Hangzhou for the first demolition negotiation with Hikvision. Under the premise of not sure whether Hikvision will accept the "demolition", the first thing to make sure is to give Hikvision this What price does "Zhaizi" quote
If you want Hikvision to give up its own development and use 100% of its own shares to replace 20% of the future "Makino Vision" shares, you must first have enough conditions to impress them.
However, Hikvision has only been established for one year and is still in the research and development stage. Without any revenue flow or market feedback, it is difficult to make a suitable valuation.
Today, Hikvision's greatest wealth consists of two parts. One part is the cutting-edge talents who all came from the 52 institutes, and the other part is the existing scientific research results of the 52 institutes, which can be regarded as soft power.
Lin Qingya's previous survey results show that Hikvision's biggest technical advantage is in encoding and decoding technology and back-end storage products. In both aspects, they have 52 original technical accumulations, so their research and development capabilities are very strong.
However, Hikvision also has its embarrassment: it has not yet made a substantial entry into the front-end camera market. In other words, it cannot manufacture cameras now, and cameras are the most important part of the Skynet system planning. One of the important links.
In other words, after acquiring Hikvision, Li Mu would either invest money in Hikvision to research front-end cameras, or simply acquire another company that specializes in front-end cameras to complement Hikvision.
Therefore, Hikvision is generally considered a high-tech R&D company, not a hardware manufacturer. It is mainly positioned as a solution provider for some subdivisions in the field of security monitoring. It does not yet have the strength to integrate all software and hardware, front-end and back-end. Become a one-stop company that integrates security monitoring research and development, production, promotion and sales
In response to this situation, the three discussed it for a long time and finally reached a consensus: judging from Hikvision's current situation, the company's valuation cannot be higher than 50 million.
After Ding Zhenglin thoroughly understood all Li Mu's structural plans and the psychological price of 50 million, he said to Li Mu: "Mr. Li, there is a problem. Hikvision and 52 are both state-owned enterprises, and their goal is to be in the market. They are looking for development opportunities, so their vision should still be very long-term.”
Speaking of this, Ding Zhenglin added: "In my opinion, what Hikvision lacks now is the funds that can be invested in the operation of the company, rather than the little cash after selling the company, so if we want to set up a Makino Vision to acquire They have to give them a broader space for development. It is difficult for them to agree just for money."
Li Mu nodded and said: "It is not difficult to acquire those traditional state-owned enterprises that are in a mess, but it is really not easy to acquire a state-owned enterprise with long-term goals and strategic planning like Hikvision."
Ding Zhenglin said: "We currently do not have any technical reserves that are directly related to the field of security monitoring, so we have very few effective resources that can be invested in Makino Nuctech. Neither soft power nor hard power is enough. I am afraid it will be difficult to truly To impress Hikvision and 52 Institutes, we have to find ways to strengthen our appeal to them."
Li Mu smiled slightly and said, "You are right, so we have to deeply analyze Hikvision's needs and then prescribe the right medicine."
"For example, Hikvision's lack of money is the first priority, so if we give him a valuation of 50 million and still want him to be willing to merge into Makino Vision and only hold 20% of Makino Vision's shares, We must first fill in the future valuation of Makino Nuctech to 200 million. This is the premise. How to fill the valuation of 200 million is what we have to consider."
Ding Zhenglin said: "There is a feasible capital operation model. We can first establish Makino Nuctech and put 200 million in cash on Muye Nuctech's account. In this way, the market value of Makino Nuctech will be 200 million in cash. If Hikvision is willing to be acquired by Makino Vision and own 20% of the combined shares of Makino Vision, then Makino Vision will have hard assets of 200 million in cash and Hikvision’s soft power of 50 million. Added together, it’s a valuation of 250 million.”
Lin Qingya also nodded and said: "I think the method mentioned by Mr. Ding is very feasible. Hikvision is short of money, and the two hundred million cash is of great significance to them. This means that once they join us, all their research fields will be A large amount of capital will be injected to allow them to develop faster; if they don't join us, they will have no choice but to continue to eat chaff and tighten their belts to develop. Do you think they will be tempted?"
Li Mu thought for a while and said: "It is too simple and crude to directly register the company and hand over 200 million in cash. I personally feel that if we directly use 200 million in cash to attract people, once Hikvision agrees, because we are not familiar with this industry. With in-depth understanding, they will basically decide how to use the money in the future. As a result, it will be difficult to maintain the balance between us and them in the future, and we will not have enough ability to check and balance Hikvision’s team.”
Lin Qingya and Ding Zhenglin also agreed with Li Mu's concerns. They didn't understand a field, and yet they had to allocate 200 million yuan to do things for people who knew it. This was indeed too uncontrollable and risky for the employer who provided the money. , even venture capital investors will first invest 10 to 20 million in Series A to see the results, and then decide whether to pursue the investment.
Everyone fell into silence for a while. Everyone was thinking about how to build their own plate and attract Hikvision to join, while also ensuring their basic control over the entire plate in the future.
After thinking for a moment, Li Mu came up with an idea and took the lead to break the silence and said: "Isn't Hikvision's current advantage concentrated in encoding and decoding technology and back-end storage products? Then we will acquire a company with sufficient strength and pure camera equipment. Manufacturing companies, bring it in as part of filling the market value of 200 million, and use money to make up the rest. In this way, if Hikvision agrees to join, we will have a camera equipment manufacturing team to cooperate with them and interact with each other. Checks and balances are used to maintain a basic balance, and with the addition of front-end equipment manufacturing on the plate, Hikvision’s appeal will increase.”
Their eyes lit up and they both thought this was a good idea.
If you don’t understand yourself, and you are afraid that the knowledgeable person will lose control, the best way is to find someone knowledgeable to check and balance with him. If this knowledgeable person does not conflict with the other person’s functions, but can complement each other, then it will be even more perfect. .
Li Mu calculated and said: "In this way, plus our Makino Technology's software research and development team, we will have three teams in hand! The internal balance will be more stable."
"The camera equipment manufacturing team is responsible for the front-end camera of the Skynet system, Hikvision is responsible for the middle and back-end decoding and storage of the Skynet system, and the developers of Makino Technology are responsible for the software support of the entire Skynet system. The three teams are integrated After it is established, Makino Vision will be able to own the entire industry chain from front-end camera to data processing, transmission and data storage in the future. Therefore, Makino Vision’s prospects are much greater than Hikvision’s own struggles. Hikvision should be able to see it themselves.”
Ding Zhenglin said: "Mr. Li, in this case, we can also bring in the promotional resources of our Makino Technology and the sales channels of Taobao as a supplement to Makino Vision in the future. I believe it will be more attractive to Hikvision." big."
Li Mu nodded and said: "Very good. We have front-end, support, resources, channels, and funds. After completing these five points, we will be able to control the entire security monitoring industry, except for the Chinese company Hikvision." All links other than the back-end are in place. As long as Hikvision is also integrated, a mature, complete and sufficiently advanced industrial chain will be created immediately. I believe it will not take long to integrate Skynet. Get the surveillance system built.”
Lin Qingya hurriedly said: "I have information on several camera equipment manufacturers that I have compiled before. The largest manufacturers in the country are basically in Shenzhen. If we acquire the manufacturers first, we will be able to control Hikvision." It will take more initiative!"
Li Mule said: "The thing happened suddenly and the preparations were too hasty, so it is impossible to do everything in such a short period of time. Since I have made an appointment with the people from Hikvision, I will draw them first today. Big pie!”
…
PS: Sorry, something has delayed me. I can only update once tonight and will make up for it tomorrow!
(End of chapter)