Extraordinary Genius

“Boss, one more thing to report is that our negotiations with TY Supermarket are going very well and their North American shareholders are willing to sell 80 percent of their shares to us, but the UK is reluctant to make a deliberate purchase, so that we can only compete with deliberate purchases by joining other shareholders. ”

“Can we raise our acquisition price a little bit?” Feng Yu asked.

Acquisitions also measure the company's future profitability, how many years it will be able to recover its investment, and how much profit it will make over the next period.

Usually this margin can be compressed, meaning that the acquisition price can be increased.

There is, of course, a floor price, which cannot be exceeded, after which the money will be lost, so the acquisition will be very inexpensive.

“It could also increase by two percent. ”

In terms of the market value of those companies, a 2 per cent increase would not be particularly significant and would not necessarily affect the decision to buy specially.

That supermarket group also had a market value of about $10 billion, purchasing only 50 percent of the equity, increasing the acquisition price by two percent, the top day being $100 million.

Compared to the profits that the supermarket group can generate, and the impact on the market, it is clear that $100 million is not going to inspire the purchasing group.

“Can't we continue to improve?” Feng Yu frowned and asked.

“Continued improvement is okay, but after measuring this year's market, we believe that this year's economic performance will not be good and may last for two or three years. Two or three years later, nobody knew anything. Continued increases in acquisition prices are likely to keep us from seeing profits for several years. ”

Ralph, they were right. The US economy is bound to be severely affected. Many people are bankrupt because of this. Where are so many people shopping at the supermarket?

Supermarket turnover and profitability will inevitably decline, and the return period on this investment will be longer.

Investing 10 billion dollars, even if you don't earn 10 billion dollars back, you have to calculate inflation, average economic growth rate, etc., that is, 10 billion dollars of principal money, recovering 20 billion dollars after 10 years to call it back, then making money.

“Did you calculate the cost savings this supermarket group would have achieved if it had merged with Taihua? Did you calculate the expansion impact of this supermarket group on our other retail businesses? ”

Ralph shook his head: "Boss, isn't this supermarket group run by Rain Holdings? ”

“No, this is going to be merged into the Taihua Supermarket Group, so some relevant data needs to be recalculated, which you can contact Liu Zheng. ”

“Ralph, the retail business is not the core business of Rain Holdings Group, nor is it automotive, nor is it electronics, our core business is financial investment, the cultural entertainment industry and IT technology, and perhaps the special company Music Electronics and Sixth Sense. ”

“Taihua Holdings Group has machinery manufacturing, retail, pharmaceuticals, IT electronics, electrical appliances, real estate, etc. ”

“While we are a diversified group of companies, there should also be some focus. The two control groups should cooperate rather than compete with each other. ”

There are too many diversified group companies in the world, and even many can cover the vast majority of industry categories in the world. But by comparison, those who focus on investing in several directions will rise faster.

It's all Feng Yu's company. Wherever you make money, Feng Yu makes money. But for Ralph, they're different, and making money from Taihua Holdings is clearly not going to raise his income.

But the boss's words were orders, and although he was reluctant, he would not refute them.

Anyway, after he followed the boss, his life had changed dramatically. Few of the world's top 500 executives at his age.

Besides, the subsidiaries of Wind Rain Holdings Group are among the top 500 companies in the world, such as Amazon Group.

As long as you follow the boss, you'll have a better chance of making money in the future.

“Boss, one more question. Acquisition of the automotive business, we can sell it to Taihua Holding Group, advance funds, also advanced by Huaxia XX Group. But with the acquisition of this supermarket group, we have a shortfall of nearly $7 billion. ”

“While we can get subsidiaries to pay some of their profits in advance, it's not enough at all. How do we solve this? ”

Originally, Feng Yu Holding Group handed over the most profitable subsidiaries, namely Feng Yu Consulting, then Sixth Sense, AIWA and Amazon. As for ancient songs, Facebook and other subsidiaries, there is no profit yet.

At present, however, the subsidiary's largest source of income, Rain Consulting, is making major investments and mobilizing all funds. This year, it will definitely not be able to hand in profits. Only the part handed in by Sixth Sense, AIWA and Amazon is not enough.

Normally, the profits handed over by those subsidiaries were at the end of the year, and even early collection would not solve the current problem.

Ralph actually wanted to say that since the acquisition of the supermarket group was for Taihua Holding Group, Taihua Holding Group should be asked to hand over the money first.

But he thinks that since the boss invested so much in the storm consulting operation, I'm afraid Taihua Holdings Group's funds have been withdrawn, right?

Feng Yu thought about it, that's a problem. By the end of next year, he said that his investments had been recovered, so the profits could be large, and that money was not a problem at all.

But now he has two choices to make.

One is to make Wind and Rain Consulting invest a little less, naturally the funds on this side of the account will be sufficient, but this opportunity can only be encountered once in many years. Feng Yu felt sorry to have given up.

Another way is to borrow money first. You can't borrow so much money from someone, so you have to borrow money from a bank.

Taihua Holding Group intends to mortgage from Minsheng Bank for the expansion and development of the company, but Windstorm Holding Group cannot continue to borrow from Minsheng Bank, Minsheng Bank does not have that much money.

“Go talk to the bank about the mortgage. ”

“Boss, interest is very high now, and many assets are in a low tide, and mortgages are not very cost-effective.” Ralph warned.

“It's okay, the interest money, it's gonna make it back. By the way, I'll take care of this, maybe from those commercial bank loans in Warsaw. I'll be back in a couple of days and I'll let you know when it's done. ”

The interest on the loan is high, and this interest should be earned by other banks. It should be earned by US banks, rather than by Huaxia's banks. It's just the dollar loan, and it's such a big amount, it might be a bit of a hassle.

……