Chapter 806 Oriental Polymerization
Zhao Jing smiled and said: "Old Zhong, although Mr. Sun is not well-known in the industrial world, he is famous in the investment circle.
Oriental Polymerization once traded. Budweiser acquired Wuchang Sino-German Brewery, Pepsi-Cola acquired Tianfu Cola, Unilever acquired Zhonghua Toothpaste and other domestic and foreign mergers and acquisitions.
It is a well-known FA organization in China." Xiaomin felt relieved.
FA is essentially a third party between entrepreneurs and investment institutions, providing investment and financing matching services to both parties.
It is not limited to private equity financing services, but also includes mergers and acquisitions, strategic reorganization, IPO, private placement, etc.
Different FA organizations have different priorities.
Sun Guozhen’s ‘Oriental Convergence’ obviously focuses on mergers, acquisitions and restructuring.
In early-stage projects, the FA agency’s commission is usually 3%-5% of the financing amount. For later projects with larger financing amounts, the commission ratio will be appropriately lowered.
At present, it is very difficult to do FA in China, mainly because the domestic venture capital market is not yet prosperous.
There are not many companies engaged in mergers, acquisitions and reorganizations.
There are also very few FAs surviving in this industry chain, and business is bleak.
However,
After FA becomes bigger, it will usually set up its own fund to invest in good projects that it discovers.
Not only can we forge deeper relationships with entrepreneurs, but we can also develop further up the industry chain and capture greater benefits.
However, there is currently no company in China that is so energetic and can take care of both venture capital and FA business.
Strictly speaking, FA is an industry that strives for human resources and relationships.
We do not sell any financial products, we sell services.
The future of the FA industry will be bleak for many years. It will not be until the wave of mobile Internet entrepreneurship breaks out and there is more hot money in the market that the entire industry will usher in real development.
A small FA team of 10 to 20 people helped dozens of entrepreneurs raise tens of billions of equity financing in one year, earning a commission of 100 to 200 million yuan.
The advantage of this industry compared to VC and PE is that money comes in quickly. Once the financing is in place, the entrepreneur will pay FA.
VC and PE companies have to wait at least three to five years, or even longer, before their companies go public and receive exit dividends.
But Sun Guozhen’s ‘Oriental Convergence’ is different.
He is engaged in mergers, acquisitions and restructuring. Once an order is placed, the contract price can easily reach hundreds of millions, or even billions.
It’s just that the dividends are tens of millions, and they can be cashed out quickly. You don’t have to wait for many years like venture capital.
Zhong Xiaomin didn’t know much about FA before, but since Hongyan took over the Delong Group, of course he had to get to know the big boss well, and he also had some understanding of finance.
"Mr. Sun is famous and admirable."
"Mr. Zhong has won the award. Compared with your leadership of the Torch Piston Pin Factory, you have taken three steps in three years, and the total income has never been less than 30 million. , it has grown to over 100 million, and my achievements are nothing.”
Sun Guozhen’s thoughtful compliment instantly tickled Zhong Xiaomin, who couldn’t help but smile, and there was a little more in his eyes. Very close.
"Everyone, stop standing around, sit down and chat." Zhao Jing said at the right time.
“Yes, yes, let’s sit down and chat.”
Under Sun Guozhen’s greeting, everyone sat down respectively.
“I heard from Mr. Zhao, how many drinks does Mr. Zhong like to have?” Sun Guozhen said with a smile.
“Just a little hobby.”
"That's a coincidence. I usually like to drink a few drinks."
As he said, he picked up the Moutai next to him and continued with a smile, "This bottle of 10-year-old Moutai has been my treasure for many years, and I usually can't bear to take it. Come out and drink.
Now we are entertaining two distinguished guests, let’s drink it together.”
As he spoke, he opened the package, and after unscrewing the bottle cap, a strong aroma of wine filled the air. .
“It’s indeed a good wine.” Zhao Jing smiled.
"If it weren't for good wine, I wouldn't dare to entertain you two."
Gulu...
The soft and clear wine poured into the quilt of the two of them.
"Come and drink to our acquaintance today." Sun Guozhen raised his glass.
“Dry.”
After each taking a sip.
"Come on, come on, eat the food, eat the food."
After three rounds of wine and five flavors of food, we were greeted by Sun Guozhen.
“You’ve eaten what you need to eat and you’ve drank what you need to drink. Shouldn’t we talk about something serious?” Zhong Xiaomin couldn’t help but ask.
He didn’t come here just to eat.
After Sun Guozhen and Zhao Jing looked at each other, the former smiled.
"Since Mr. Zhong asked, I will tell you directly.
I wonder how much you know about Xu Liang, the big boss of Hongyan?"
"World-class The super-rich people, financial geniuses, and technological elites have all been written about in the newspapers.”
Sun Guozhen smiled and shook his head, “Everyone knows these superficial news.
The key is the information that ordinary people don’t understand. "
"Xu Liang rarely participates in social activities and almost never appears in front of the media, so there are only rumors circulating in the market and there is very little real news. " Zhao Jing said.
"That's what I said. But we can still get a glimpse of the mysteries from the development of some of its companies such as Hongmeng, Master Kong, and Hanhua. "
Sun Guozhen paused and continued, "According to my understanding, Xu Liang is indeed a top business elite, and he has a very strategic vision. He is also one of the top few in the world.
However, in terms of character, he is retributive, narrow-minded, greedy and extremely gambling.
Why do you say that?
A specialized organization has conducted a survey:
All companies owned by Xu Group lay off an average of 5% of their employees every year, of which at least one-third are managers.
And that’s not all of the employees who left Xu’s Enterprise Group. Another part was sent to Tilanqiao by Xu Liang.
If you two don’t know Tilanqiao, I can remind you.
This is the largest prison in China for economic prisoners.
More than 80% of the economic prisoners in China, including your former boss Tang Wanxin, will also be imprisoned here. "
Zhong Xiaomin said in a deep voice: "What does Mr. Sun mean by this? "
"Mr. Zhong, don't get me wrong, I have no ill intentions.
I will only tell you about Xu Liang's character and style. He is a person who will retaliate against others.
Especially those companies that have just been acquired by Xu Enterprise Group will experience such a major personnel turmoil.
At least half of the top executives were imprisoned.
This was the case with Jianlibao, the acquired Huiyuan, Master Kong, Home World Supermarket, and Shede Wine.
Now he acquired Delong.
I can be 100% sure that whether it is Hunan Torch or Alloy shares, both the old three shares and the new three shares will be cleaned up. "
"Is Mr. Sun too alarmist?
The Hunan Torch has not heard of anyone being arrested so far. Zhao Jing said.
“The reason why Hunan Torch did not appear is because the size of Hunan Torch is too large, and the current integration of Xiang Torch by Hongyan is mainly based on enterprise-level management.
Eliminate non-main businesses, improve corporate management systems, etc.
After they complete these tasks, the next step is to fight for the management of the company.
The original management will be cleared one by one.
Corruption and bribery are the most appropriate reasons.
And this reason is easy to find. After all, in this era, everyone has to deal with the boss frequently, and greetings and deliveries are indispensable. These bills will definitely not be recorded in the company's accounts.
If it is in the name of corruption, it will almost always be caught. ”
After glancing at Zhong Xiaomin, who looked ugly, Sun Guozhen and Zhao Jing looked at each other, and the latter said.
“This is just your one-sided statement, and it is too alarmist.”
“Alarmist?
I’m afraid you two don’t know. Like Delong agricultural supplies supermarket chain, Denong Several people in the seed industry, which are relatively easy to integrate, have been sent in for corruption.”
“Who?”
Zhong Xiaomin couldn't help but ask.
“I wonder if you two know Wei Guang, the former general manager of the Denong Agricultural Supermarket Chain?”
Zhong Xiaomin’s face changed, “Wei Guang went in?”
"For corruption, he was sentenced to three years and six months."
Zhong Xiaomin's face turned ugly.
He knew Wei Guang, and they entered Delong together.
However, after three months of training at the headquarters, Wei Guang went to Tunhe in the Western Regions, and he joined the Hunan Torch.
In the 1990s, college students were scarce talents, let alone master's degrees, so the two of them rose to prominence within Delong.
In less than ten years, Wei Guang became the general manager of the Denong agricultural supplies supermarket chain, and he also took office and became the general manager of the piston pin factory owned by Delong Xiang Torch.
After taking a deep breath, Zhong Xiaomin stared at the man opposite.
"I believe what you are telling the truth.
But, why do you know this?
Don't tell me you are just out of good intentions."
Sun Guozhen smiled slightly , adjusted the glasses on the bridge of his nose.
"We are all adults, and all relationships are based on profit. The reason why I tell you these things is of course for profit."
Zhong Xiaomin said solemnly: "What kind of benefits?"
"Someone is interested in the Hunan Torch, so they want to acquire it, and I am the middleman."
"Haha!"
After sneering a few times, Zhong Xiaomin said sarcastically: "I admit that Mr. Sun is indeed very capable, but we have to see who he compares with.
In front of Xu Liang, who has a net worth of tens of billions of dollars, Any hair he plucks out is thicker than the three of us combined.
Want to pull teeth out of his mouth?
A fool? "
Sun Guozhen did not pay attention to his sarcasm and continued with a smile.
"I admit that Xu Liangcai is powerful, but there are no institutions in the world that can compare with him or even surpass him. few. "
"For example? ”
Zhong Xiaomin said coldly.
“For example, JP Morgan, such as Goldman Sachs. My Oriental Polymer Group has cooperated with them, and they are also very interested in Hunan Torch.
As senior executives of Hunan Torch, you should understand that JP Morgan originally We almost reached a cooperation with Delong.”
Of course Zhong Xiaomin knows.
If Delong’s asking price hadn’t been too high, maybe the Delong Group really would have been named Morgan.
"Morgan and Goldman Sachs are indeed powerful, but they may not be able to make Xu Liang compromise;
And the country will not agree to Hunan Torch, the country's leading heavy industry group, being controlled by foreign capital." Zhong Xiaomin said.
Sun Guozhen smiled and said: "Can Morgan and Goldman Sachs make Xu Liang compromise? Can the superiors approve it? In fact, these have nothing to do with you.
The most important thing to you now is your own Guaranteed.
If you continue to stay in Hunan Torch, you will be liquidated by Xu Liang sooner or later.
Mr. Zhong, do you also want to follow in the footsteps of Mr. Wei Guang and ride a sewing machine in Tilanqiao? ”
(End of this chapter)