Chapter 516: 56 times net profit
Xu Liang put down the document in his hand and closed his eyes to think.
After nearly a month of negotiations, Hongmeng and various investment institutions have almost reached a compromise.
Using 56 times net profit as the baseline and empowered by Hongmeng’s existing financial data, the net profit in 2003 was 7.9 billion Chinese dollars.
Hongmeng’s overall valuation is US$53.5 billion.
After a while, Xu Liang opened his eyes.
"That's it, there's little point in delaying it any longer."
Xie Wen nodded, "I think so too. Whether it's the net profit multiple or the amount of net profit , if we continue to talk, we can add one or two points at most, but after raising the remaining funds and investing in Hongmeng, we can develop faster."
Xu Liang nodded, "There are still a few left. Institutions? "
"11. Goldman Sachs, JPMorgan, Citigroup, HSBC, Deutsche, SoftBank, Waterfall Investment, Li Jiacheng Foundation, Abu Dhabi Investment Authority, Samsung Investment, Merrill Lynch."
Of course, there are more than these 11 companies participating in Hongmeng’s Series B financing. However, as the negotiation conditions get higher and higher, many institutions feel that the risk is too great and withdraw.
These are the only 11 companies that still remain.
Xu Liang looked at the list, "Although there are more than expected, but so be it. ... Lao Xie, please inform me that I will personally preside over tomorrow's negotiations."
Xie Wen also breathed a sigh of relief after nodding.
It has been a month, and the burden on his shoulders is finally about to be lifted.
the next day.
Hongmeng Conference Room.
Representatives from eleven organizations walked into the conference room and found their own seats to sit down. They looked familiar, just like their own backyard.
No wonder they are like this. Anyone who comes to the same place every day and stays there for a month will end up acting like this.
After Li Zeju turned over the documents in his hand, he regained his composure.
He came here on behalf of the Li family for this Hongmeng B round of financing. However, although the Li family is the richest man in Hong Kong, it is not considered top-notch in the global field.
If it hadn’t been for Xu Liang’s permission, they wouldn’t have appeared on the list at all.
If his father hadn’t trusted Xu Liang’s ability and was willing to bet on Hongmeng’s future, he wouldn’t have persisted until now.
"Li Sheng, what are you thinking about?"
Li Zeju turned to look at the middle-aged man next to him with an old look on his face.
"Uncle Huo, the negotiation is almost over now. Xu Liang, as the chairman and CEO, has not come forward yet. Is he really planning to hand over Hongmeng's Series B financing to Xie Wen?"
Huo Jianning smiled and said, "For such a big thing as Hongmeng's B-round financing, Xu Liang, as the company's founder and CEO, cannot fail to show up. The reason why he hasn't shown up yet only means that he is not satisfied with the current conditions."< br>
“56 times, net profit of 7.9 billion, he is not satisfied?”
“Greedy is nature. Especially for a businessman.” Huo Jianning said with a smile.
Li Zeju frowned and said, "I'm tired of bickering every day. It's a complete waste of time."
Glancing at him, Huo Jianning said: "Ninety percent of business negotiations are like this. If we don't exhaust each other's energy and trump cards, we won't sign the contract.
Even after exhausting all our energy, we won't sign the contract. All the cards are not necessarily successful."
Li Zeju nodded. He knew that the other party was teaching him for the sake of his father. He was not unconvinced, but simply impatient.
In fact, it was not just him who was impatient, most of the people present were a little tired after spinning around for nearly a month.
"Mr. Chris, how long will this boring and ineffective negotiation continue?"
Bob Chris glanced at the temporary assistant, "Can't hold on anymore?"
"I just think it's a waste of time." Paul Carr shook his head.
“Do you know about KKR’s takeover battle for Knott’s Nabisco?”
“Of course, I have seen Mr. Brian Burrough and John Hilliard He wrote the best-selling book "Barbarians at the Gate." Paul nodded.
"The entire process lasted from October 1988, when KKR joined the Knotts-Nabisco acquisition, to February 9, 1989, when the signing was signed in the presence of more than 200 lawyers and bankers. More than four months.
During these four months, I slept less than five hours a day on average, and prepared various documents every day that could fill a three-foot box.
The documents we prepare within one month and need to be submitted to the American Antitrust Association require a Boeing DC9 aircraft to transport them.
That was a business negotiation that I experienced that reached the limit of my mental and physical strength. No, it should be said that it exceeded the limit.
After the contract was signed, I took a break for nearly half a year.
Then he left KKR and joined JPMorgan DA.
I say this not to show how powerful I am, but to tell you that large-scale business negotiations are a competition that consumes extremely energy and time, and even tests human nature.
If you want to do well in this industry, you have to learn to be patient and accept it. "
"Mr. Chris, thank you very much for your teaching, I will learn to accept it. ”
Looking at his apparent agreement, but with a look of disapproval in his eyes, Bob Chris smiled and said nothing more.
Today’s young people flaunt their individuality. Opposing authority, he became less and less able to listen to the opinions of old people like them.
Da da….
The slightly messy footsteps attracted everyone's attention.
The sound of chatting stopped, and everyone subconsciously looked towards the door.
Squeak, the bounce door opens.
Xie Wen walked in.
Clearly visible disappointment appeared on everyone's faces.
As long as Xu Liang does not show up, they will understand that this business negotiation will never enter the real signing stage.
However, when Xie Wen walked in, he did not go directly to the main seat and sit down as before. Instead, he opened the door and stood aside.
A tall figure that they had been waiting for for a month walked in quickly.
"Wow..."
I don't know who started first, and warm applause rang out in the conference room.
From the trough to the climax, everyone's heart is full of excitement.
Xu Liang walked to the center, his deep eyes quickly glanced at everyone, and he pressed down with his hands.
The applause quickly died down.
Seeing this scene, Xie Wen felt a little emotional.
Although the boss is young and is the first to appear in Hongmeng’s B-round financing, his control of the scene has surpassed his own.
“It seems that everyone knows me, so I won’t introduce you. But I am very grateful to you, thank you for still standing here, and thank you for your trust in Hongmeng’s future.
At the same time, I also congratulate you, because your persistence will be rewarded, and all institutions that are still here will receive shares of Hongmeng Company.”
The applause sounded again, this time for real benefits. .
When the applause died down, Xu Liang continued.
“I won’t talk too much nonsense. The basic condition for Hongmeng’s Series B financing is 56 times net profit, and the base of net profit is the 7.9 billion Huaxia coins you negotiated previously.
< br>But."
The aggravated tone made everyone feel a little nervous.
“There are still 11 companies still here, and Hongmeng’s shares for financing are only 20%. It is impossible for us to distribute all the equity equally.
Therefore, next we have an advanced condition to determine who can get more points and who can get less points. ”
Everyone suddenly looked a little more serious.
It was a matter of interest, so they couldn’t help but pay attention.
Seeing the change in everyone’s expressions, Xu Liang continued with a smile. Dao.
“We are all elites in the investment field. It is very clear that for a company, although the money obtained from financing is important, it is more important to bring contacts or business help to the company.
Therefore, you can start from this aspect and submit a piece of information to Hongmeng. We will use this information to classify who can occupy more equity in this financing. "
A middle-aged man in a black suit raised his hand.
"Is there a problem with Mr. Keyes? "
"Mr. Xu, can you tell me specifically what kind of help you want? Personal connections or business are too broad. ”
“Mr. Case can start from Hongmeng’s specific business. "Looking at the silent Goldman Sachs representative Teejay Lauder next to him, "Everyone knows that Hongmeng's main business is Internet search and pan-entertainment.
At present, Hongmeng is developing very well in the Internet search business and gaming industry, but we are still lagging behind in other areas and urgently need your help. ”
Xu Liang didn’t make it too clear.
But the people here are all elites. At this point, they already know what Xu Liang wants.
"I will give you three days to think about it. After three days, the document will be handed over to Mr. Xie. We will study your report in detail and give the results. "
"Mr. Xu, do we have the right to know the reports submitted by various institutions? asked Teejay Loud.
"I'm very sorry, no." Xu Liang shook his head and continued, "You can regard this incident as a hidden mark."
"Mr. Xu, this may be unfair to everyone."
"Haha, fair? There has never been absolute fairness in this world. By the way, Hongmeng International Company will implement AB share restructuring, and the voting rights of an A share will be ten times that of a B share."
This time After the financing is completed, Hongmeng Corporation's equity in Hongmeng International will further decline. Although it can barely maintain its controlling stake, the power of external shareholders will also become more powerful.
In order to ensure its control over Hongmeng International, AB share reform is a necessary option.
(End of this chapter)