It was Friday morning.
There was a comprehensive report on the due diligence of Piettek during the morning coffee time.
First said Chang.
"In conclusion, this is a company that has become a capital erosion. The debt was 32 billion won, up 2 billion from the 30 billion on paper, and 33 billion won, including the useless machinery and transportation that Kim Hyung-sook investigated."
That would be capital erosion, with more debt than assets.“
"Yes."
"Does the vice president of Piettek know about this?”
"After due diligence, the due diligence team is always supposed to have a closing meeting. And I'm supposed to tell the CEO of the company that did the due diligence about the results of the closing meeting."
"Then you must have notified me. What's the reaction?"
"I think I've made a proper due diligence. He said the inspection team knew something he didn't know."
"You must have reevaluated our due diligence."
"Now the company needs to be brought under court receivership or handed over to someone else for free. As a patient, she's a critical patient who's barely surviving with an oxygen ventilator."
Song said.
"I don't think I'll have anyone to take it even if I just ask them to. Rather, we should ask them to take it with us. When we throw away things like refrigerators and furniture, we pay for them, don't we?
"I don't know if the widow of the deceased boss will also kill herself."
"The vice-president said that when he created the initial capital, he put in all his personal wealth, as well as his severance pay."
"If an individual has raised three billion won on his own, that's possible. I'm sorry I borrowed it from my relatives."
"There's nothing special. The widow must go to court in order not to inherit the debt. And if the widow has a debt, she has to apply for a credit recovery."
Choi Yuna said.
"How do I not want to inherit a debt?"
"You must apply to the Family Court for waiver or limited approval of inheritance."
"The widow's life will not be smooth in the future. My husband's dead and I'm in debt."
"So I have to file a credit recovery request with the court."
"Then it would be impossible to borrow money from the financial sector even if we were going to buy a business or a house. Do you have children?"
"I don't know if you have children."
"Oh, that's too bad. Let's discuss whether it's worth our investment, by the way."
"Pitestech is a company with no change in sales. Therefore, the operating profit comes to a certain extent. However, I have a lot of debt, so I pay a lot of interest on bank and private loans. If we reflect the cost of financing, ordinary profits are going to be a loss."
"Would you make a profit if you paid 30 billion, or 33 billion?"
"The volume of operating profit is so small that we can't even get a bank to invest 33 billion won. There's a phenomenon where only money gets tied up. So, I think we can't invest."
"I see it as a company that shouldn't be invested."
"I don't think so either."
Chang opposed it, Song opposed it, and Kim Hyung-sook opposed it.
I wanted to take over most of the time, but I had nothing to say about the results of the due diligence.
"The company should go under court receivership. By the way, do you think the company will survive if we go under court receivership?"
"The court will accept your application. Then the court will decide whether to save this company or kill it. We'll send investigators as we did due diligence."
"That would mean the same result as ours."
"Yes, even the court-appointed investigators will find it impossible to cover that much interest with a small operating profit like chick pee. Then the application for court receivership will be rejected and the company's assets will be auctioned off immediately by creditors."
"Oh, that's scary. It seems like business is really on the line."
"Yes, business must be done with your life."
I made a concluding remark.
"Originally, Pietestech was thinking about doing a joint M&A between the corporation and the individual. But given that the volume of operating profit is too small and you're going to spend too much money, I'll give up the acquisition."
"Okay."
"Mr. Hong Ji-young, in charge of general affairs, please attach the travel expenses to the four people who participated in the due diligence."
"Okay."
"Thanks for your hard work. That's the end of the meeting."
I was just about to get up, said Jung.
"Wait!"
"Do you have anything to say?"
"I think differently. M&A often buys failing companies anyway. Or, even if the company is doing well, we often do M&A when we see synergies from mergers."
"That's true."
"In March last year, I attended a seminar on investment strategies for Korean startups with Global Brain, a Japanese venture capital firm, at KOTRA. I went there because the securities company sent me."
"What does that have to do with Pitestech?"
"In a nutshell, Global Brain is a Japanese private equity firm. There's no reason why we can't fight against Piettek when Japanese private equity firms venture into Korean venture startups."
"You say operating profit is chick urine, right?"”
'You can make the elephant pee.“
Chang also said a word.
"Is it that easy?"
"If Japan's Global Brain had conducted due diligence on Pitestech, it would have tried to take over. In April last year, I heard that Global Brain set up a Korean branch and created a dedicated fund of more than 10 billion won. If they knew about Pitestek, they would've gone on with only what they had."
"Will it be?"
"The most vulnerable thing about Pitestech is its sales force. The president, vice president, and research director are all doctors at KAIST. What university is KAIST? Isn't that a college for talented students? They were strong in technology and quality, but they were weak in sales."
"That's true, but will Global Blaine come at M&A with it?”
"Now, we don't have any sales executives. I think he quit because the company became weak. If we strengthen our operations and increase our sales, our operating profit will naturally grow."
"Reinforcement of sales force..."
"When you go to the headhunter market, you can get as many veteran executives as you want. If you invest 33 billion won, you won't even be a bank right now, but if you strengthen your sales force, you'll definitely win."
I asked.
"It's 33 billion won in debt, but there are things that need to be paid back right away and things that need to be paid back slowly. Director Chung said, "Don't do anything else today, just pick one."
"I was going to tell the boss that, too. If we choose to pay back slowly and interest-only to reduce our initial investment, we may be able to take over at around 15 billion."
Chang told me.
"The fairies have a point. If Jung raises the debt by dividing it into early repayment and maturity repayment, the boss can finally decide."
"Okay. Thank you for your hard work."
I went to my room and sat in a chair and looked out the window.
Looking towards Yeouido Park, I was lost in thought.
The logistics warehouse I saw in Anseong was invested by Blackstone, an American private equity firm, and Jung just said that Global Brain, a Japanese private equity firm, will invest in Korean startups. Wouldn't foreign private equity firms swallow up all of Korea's best companies?]
[Then we need to raise a private equity firm, too. We need a big private equity firm. A private equity fund company that can buy large companies. I'm not a SPACK to join a big company, but can't I buy a big company and become a president or chairman?]
[Okay! Let me make a huge private equity firm like Carlisle and Blackstone in the United States!]
I had to earn more.
Today, he opened HTS and bought eight political-themed stocks. It sold about 300 million won in the morning.
It's lunch time.
Chang opened the door of the president's office and said, with only his head sticking out.
"I've decided to go eat buckwheat noodles with the chief and the chief Song. Would you like to go, too?"
"Is it already lunchtime? Then I'll go, too."
The buckwheat noodle restaurant serves not only buckwheat noodles, but also fried tofu rice balls.
Eating noodles, Jung said.
"We'll give you a post-dinner report on the classification of Pitestech's debts. I'm late because a client came to talk to me."
"Take your time. It's not urgent."
News was coming out of the TV set on the dining room wall.
With the start of the presidential election, there have been voices from announcers that each party's candidates are making security pledges.
Song said.
"Park Un-young is here. She's the prettiest announcer."
The sound of Park Un-young made my heart ache again.
Jung also looked at the TV screen and said,
"He'll probably marry into a chaebol family like announcer Noh Hyun-jung, right?" No Hyun-jung went to the modern family, right?”
"I did. I married Chairman Chung Ju-yung's grandson."
I changed the subject.
"If each party candidate makes a security pledge, defense stocks will rise."
Song said.
"Our country should make a nuclear bomb, too. That way, other countries won't ignore it."
"Not that one. The Korean Peninsula declared denuclearization.”
"I wish we could at least build a nuclear submarine."
"Not even that. Korea planned to develop a nuclear submarine in 2003, but it failed because it did not comply with the principle of denuclearization of the Korean Peninsula. If South Korea wants to build a nuclear submarine, it needs to secure U.S. consent in advance.”
"Gegeral, it's a small country's New Year's Day.”
This time, said Chang.
"I saw in the business paper this morning that Kumho Tire is being sold. The creditors of Kumho Tire, including the Korea Development Bank, seem to be pushing for the sale on the 20th next month
"Really? It's a big company, so the sale price is going to be huge.”
"He was expecting about 1 trillion won."
"That's great. We're hesitant to take over with the 33 billion-won debt of Pitestech, which is an astronomical number."
"By the way, have you had a little dip in the presidential week?"
"The presidential election is...The opposition party's candidate stocks are likely to rise further as there are many demonstrations of university students these days. It's probably going up until the think tank is launched."
The three people who were eating buckwheat noodles simultaneously raised their faces and looked at the same time, they looked at me.
The word came out of the mouth of a super ant, so it seemed to have no choice but to pay attention.
"Are you sure?”
"The stock is all about investing in possibilities, and there's no guarantee that it will. Knowing what's going to happen in the future is the realm of God, not the realm of human beings."
"So you're not sure about the establishment of the think tank, but you're putting weight on the possibility of going up."
"Yes, it's better to avoid the ruling party's presidential candidate when there are frequent demonstrations criticizing the incumbent administration."
All three nodded.
"Then when will the think tank be launched?"
"Well, I'm not a politician, I don't know, but wouldn't it be launched in a month or two? For now, I'm in touch with people from think tanks."
"Oh, is that so?"
Decide on acceptance after potato