A full-fledged negotiation meeting has begun.
Gerald Dean, the president of the building, called someone over the phone.
A man in his 50s and a man in his 40s came in with thick papers.
Gerald Dean introduced these people.
"I'm the managing director and manager of the accounting department of our company."
The two greeted us at a 90-degree angle.
I saw a man in his fifties as managing the whole building.
It was a man whose bangs were slightly peeled off.
He wasn't the one who had a hair transplant like me.
Gerald Dean, who received the document from the managing director, explained the status of the building.
The accounting manager gave us a brief list of the status.
Gerald Dean explained the total floor area of the building, the quasi-performance, the number of cars parked, the number of lifts, and the rental and exclusive floor space.
The building had a floor area of 14,000 pyeong with a 55% utilization rate.
The financial status was explained by a person named Managing Director.
It was a company that did not make much profit considering interest and depreciation loyalty due to the large amount of money borrowed from S Bank, a foreign bank.
The managing director and the accounting manager sometimes spoke quietly with Gerald Dean, who seemed to speak English well.
Well, since the boss is American, he must have picked someone who can speak English.
I asked.
"Is the depreciation of the building 40 years?"
"Yes, it's 20 years in the neighborhood, but 40 years in steel and reinforced concrete."
In explaining for a long time, James Lee of the foreign S bank stood up.
"I'm sorry you're explaining, but I have to go. The debt is 140 billion won, as shown in the table. You said that the buyer will succeed to this as it is, right?”
"Yes."
Me and the president of Woods & Moore answered at the same time.
said James Lee with a smile.
"We decide the interest rate by considering the credit standing of the acquisition company. I checked the credit ratings of JS Invest or Woods & Moore. I don't think the interest rate will be much different from the current company. I'm going to get going."
Then James Lee bowed politely and went out.
James Lee said as he went out, reaching out to lawyer Yoon.
"May I visit you personally?"
"Welcome any time."
The two looked like Korean people, but because they grew up in the United States, their English pronunciation was completely American.
The managing director gave a series of briefings.
"Current revenue is 14 billion."
Fourteen billion won was less than half the revenue of Pitestech, which invested five billion won.
But the real estate company didn't have to worry about going bankrupt, and it was worth a try because there was a profit on the market later on.
It was better than bank interest if there were no debts. It was like a rowing business that could always be planned.
"Are 14 billion won in interest, provisioning, and labor costs covered?"
"Operation costs, labor costs, and interest. There are times when it's hard to get a 100% provision."
Building is used for 40 years and costs a lot of money to build later.
Thus, depreciation provision refers to money that is kept off little by little every month for this purpose.
It's a profit to use the building longer.
"How many employees do you have?"
"There are eight."
"8? Eight in this big building? Looks like the number of guards and cleaners is pretty high, too."
"We have full-time facility, environmental, and safety personnel, and we leave all expenses and cleaning to the service company."
"Hmm."
I nodded.
Woods & Moore's president and vice president also asked questions.
They mainly asked questions in the financial sector.
Gerald Dean, the Korean president of the transfer company, said, shaking a big chunk.
"A takeover is a condition that takes over all of its employees."
It's a matter of course. Recruitment of equipment and environmental personnel seemed to take time and not easy to find people. Moreover, they were also people who could speak a little English.
I said, looking in the face of Woods & Moore.
"They're trained agents, so you'd better take over all your staff."
Woods & Moore CEO Martin Hayward also nodded.
The managing director and the accounting manager, who were briefing, seemed to smile of relief.
The following was Yoon's remarks.
The English-language contract for real estate sales and joint venture has called for some self-help changes.
In case of a dispute, the jurisdiction court was to be a South Korean court.
It was already lunchtime, even though we didn't even negotiate in earnest.
I suggested meeting again tomorrow.
In the meantime, I have said that our employees will conduct due diligence on assets other than real estate in the afternoon.
The due diligence was a process of confirming whether the list and assets presented were actually correct.
In addition to building buildings, there were also mechanical devices to manage buildings.
I had Assistant Manager Kim Hyung-sook and Assistant Manager Choi Yu-na conduct due diligence.
It was because Kim Haeng-sook was a woman, but she also had a thorough background in the due diligence of Piettek's assets.
Woods & Moore's president said he would also hire a vice president.
The announcement was made by the Korean managing director of the transfer company.
We decided to have lunch separately for each company.
I decided to eat with lawyer Yoon.
Assistant Manager Kim Hyung-sook and Assistant Manager Choi Yu-na said they would do it at a restaurant in the basement of the building.
As I left the conference room with lawyer Yoon, the executive director, who briefed me a while ago, approached me.
In his fifties, he bowed heavily to me in my thirties.
"You're the president of J.S. Invest, aren't you? I've heard a lot about you."
The managing director seemed to come and greet me on purpose because if I took over this building, I would be his boss.
I smiled and reached out my hand.
"I look forward to working with you."
The director said hello again.
"Oh, my God! I'll ask you.”
"We haven't decided yet. If we decide to take over, we'll meet up later."
"It's my business card."‘
The managing director gave me his business card. His name was Lee Jong-tae.
Yoon asked to go to a Japanese restaurant for lunch.
While eating sushi, lawyer Yoon told me.
"Why don't you cut the sale price when there's no big problem with the contract or the joint venture?"
"Do you want a discount?"
"Looking at the documents I presented you, you had an appraisal two years ago. The appraisal didn't exactly reflect the market price, but it still makes a big difference."
"I felt the same way."
"They had only 200 billion won in acquisition costs six years ago. That means you've eaten 80 billion... ...and you've eaten 40 percent of it in almost six years."
"You eat a lot."
"I have six years, so I won't even pay much transfer income tax. It must be hard, but try adjusting it.”
"Okay."
"And when the contract is signed, we will not be able to verify English."
"Please issue a bill for the lawyer and send it to our accounting officer."
"I'm sorry to hear that."
"It's a public thing. Well, we can handle the cost."
I broke up with Yoon and came to the office first.
General Manager Chang asked me.
"How was your job?“
"Assistant Manager Kim and Assistant Manager Choi asked us to conduct a due diligence on their assets. I'll just have to check the actual document."
"I've been to that building before. The location is good and the underground shopping mall is well developed, so the vacancy rate seems to be very low."
"Is that so?"
I turned on HTS with the determination to deal with SillaJen.
SillaJen was still in a state of limbo in the aftermath of last week's additional week.
I picked it up today.
I've been doing business for a long time and got a call.
"It's me. Martin Hayward, president of Woods & Moore."
"Yes. Is something wrong?"
"Are you free in the evening? There's something else we need to discuss separately."
"Okay. We leave work at 5:00, so let's meet at the Conrad Hotel at 5:30. You're staying at Conrad, aren't you?”
"Yes, let's have dinner together.”
I wondered why this friend wanted to meet me.
After 4 p.m., Kim and Choi returned.
"I've been through tangible assets."
"Good work."
"I just checked that there was an item. We couldn't check the performance of all kinds of tanks, environmental machinery, and parking lots lifts, so we just figured out whether they existed or not."
"That's enough. And there's a building appraisal on the documents you've presented, right?
"There is."
"Please make a copy of it and bring it."
"Okay."
Assistant manager Choi Yuna sent me a picture by Kakaotalk.
It was a scene of negotiation today.
It's about evening.
I sent a message to Eunyeong.
"I have something to do today, so I'll have dinner."
"Really? Then I'll have to eat and go in. Do you have company dinners with your staff?"
"No, the executives of the U.S. private equity firm are here. Have an important negotiation."
"American?"
I sent the picture taken by Assistant Manager Choi to Eunyeong.
It was a scene where I sat face to face with three big Americans today and spoke enthusiastically.
Eunyeong seemed like I was playing internationally.
"Oh, my! What an important negotiation you seem to have!"
In the evening, I thought it would be better for Choi to have a professional term when talking to the president of Woods & Moore.
I called assistant manager Choi Yuna.
"The owner of Woods & Moore wants to have dinner with us tonight. Would you like to join us? You don't have any other plans, do you?
"Yes, there isn't."
Choi Dae-ri liked it because she had a big mouth today.
I went to Conrad Hotel with Assistant Manager Choi.
Martin Hayward raised his hand in the lobby.
Vice President Hubert Pharma also came out.
I went to an Italian restaurant with them.
I ordered beefsteak and wine.
Martin Hayward asked me.
"You won't sell the building in three years, will you?"”
"I don't think so."
I said this, but there was something burning inside.
If you have to buy shares of Group G, you may have to sell back your stake in the building.
But I couldn't express myself here.
Martin Hayward said, cutting the meat with a knife.
"We plan to have it for more than six years. Didn't the people who are transferring now sell it after six years?"
"It must be because of the transfer tax rate."
Korea has a special long-term deduction rate for buildings. Six percent for more than three years, 12 percent for more than six years.”
"Yes."
"And the name should be changed, right?”
"I guess so. But I can't quickly think of a name that can display JS Invest and Woods & Moore at the same time."
"If we don't sell the building within six years, the company that manages it can be called JS Tower. JS Tower, Inc."
I said with a smile.
"You can just call it E Tower."
"Haha, is that so? And we welcome your lawyer today. Legal guarantees on the payment of negligence are welcome, too.
"That's why I brought you here."
"And the Korean owner of the selling company received a 20 million won salary plus a car with a company house and a driver. Of course, we and their people are in different positions, but we want to get a house for 10 million won in salary."
"I'll rent your house monthly. Monthly rent is also deductible."
"The former president paid 2.5 million won a month for his apartment in Trump World. Would you do that?”
Assistant manager Choi Yu-na seemed a little surprised to hear that her monthly rent was 2.5 million won.
"Let's do that."
Martin Hayward and Hubert Palmer liked my cool answer.
"You don't need a car. I'll rent a car whenever I need it."
"Go ahead."
Martin Hayward hit me with a satisfied look on his face.
I said, drinking wine and wiping my mouth with a napkin.
"Are you finished speaking?"
"Yes, I'm done talking."
"Let's cut the acquisition price by 10 billion tomorrow."
"What? Do you shave? How?"
a bid-down operation