Chapter 78 Strategy
Neither Tianhe nor Alghe currently has a mature management team.
Most of the company’s personnel have technical backgrounds.
This leads to the problem that when forming the early-stage M&A team, the technical capabilities are strong but the management innovation capabilities are weak.
Tianhe Seed Industry is not bad. With Yan Qun, a middle- and senior-level manager who was born in China Seed Group, as the leader, there should be no problems in the early preparations for the merger and acquisition.
But Alfalfa Agriculture and Animal Husbandry are blind. They are all technicians in soil improvement, pasture cultivation, etc. The only one who can be related to the dairy industry is Ding Ji.
Having no choice but to invest in external forces for mergers and acquisitions, Guo Yang had no choice but to increase investment.
Fortunately, Guo Yang still has a base in the capital.
In Beijing, Yang Cheng was leisurely browsing the news on the portal website in the office.
While watching, I also felt regretful.
"It's a pity. I didn't expect that this year's natural rubber will not be affected by the WTO entry, but will rise steadily. It is a rare bull market in my country in the past five years.
"Although soybean futures are okay this year, If the boss listens to me and makes two deals of natural rubber, he will make a lot of money this year. ”
Yang Cheng analyzed it carefully for a while, and the natural rubber futures market in 2002 must have ended in a slow bull situation.
But the domestic area stopped cutting, and the carry-over area Inventory levels are also going down, and there will be a bullish trend in natural rubber at the beginning of the new year.
We need to persuade the boss again.
You have to be proactive when doing your work!
Otherwise the boss will treat me as a tool.
But in fact, Guo Yang really used Yang Cheng as a tool.
Dialed Yang Cheng, general manager of Jingcheng Weiguang Investment.
Guo Yang said directly: "Yang Cheng, find a professional team such as lawyers, accounting firms, and tax experts who are proficient in corporate mergers and acquisitions in Beijing. I will ask my assistant to send you some information later."< br>
"Okay, boss." Yang Cheng was a little curious, the boss was making a big move!
"In addition, how is the progress of your acquisition of NetEase's stocks?"
"Boss, according to your instructions, half of the soybean futures warehouse receipts have been profit-taking and have been approved. A company registered in Hong Kong bought 600,000 shares of NetEase at an average price of about US$6."
Hearing this, Guo Yang breathed a sigh of relief and felt good about catching up.
“Okay, good job, you can continue to buy NetEase’s stocks.”
Yang Cheng felt very puzzled.
“Isn’t it a little too late to buy now? NetEase’s stock price has been correcting recently, and the benefits brought by the game have almost been digested by the market.”
“It’s okay, keep buying. Soybean futures should be relatively stable in the near future. It is enough to keep some funds, and buy the rest on NetEase first."
Guo Yang has often seen advertisements for "Westward Journey Online 2" on the web recently. Once the game was launched, it became popular on the streets and was deeply loved by players.
At this point, NetEase has once again discovered a new game growth point for China Internet.
Although it is a little late to buy NetEase stocks now, Guo Yang knows that at the current price, he will definitely make a lot of profits in the future.
As for the soybean futures crisis, the main opportunity is still in the second half of 2003.
"Boss, would you like to buy some natural rubber? I feel there should be a chance at the beginning of the year."
"Natural rubber? Forget it, I don't really understand this." After thinking about it, Guo Yang recalled Yang Chengyou mentioned it to him some time ago.
If you don’t understand, I understand! Yang Cheng wanted to say this, but in the end reason defeated impulse.
Guo Yang also felt Yang Cheng's mood swings, but he still decided to follow his own ideas.
Let’s not mention Yang Cheng’s professional ability for the moment, but at least Guo Yang has the advantage of foresight and knows which investments have a greater chance of making money.
The ‘Soybean Futures Crisis’ and investment in Internet companies are the safe ways he chose to supplement his sources of funds.
Moreover, 2002 will be over soon!
SARS cases have already appeared in the south, and the situation will be more serious in the first half of next year. However, the Internet industry has also ushered in a period of rapid development.
Thinking of this, Guo Yang continued to ask: "Apart from NetEase, will Penguin and Alibaba have the opportunity to intervene?"
Yang Cheng choked, how could the investment company have so much money in its account, "Boss, it's difficult , Penguin’s net profit this year was 144 million, and Alibaba also received financing from SoftBank the year before.”
“Forget it, wait until Penguin is listed, and then consider buying shares.”
“ As for Alibaba, the money raised last year should be almost spent. We will continue to contact them to see when the next round of financing will be and whether we have the opportunity to participate."
Yang Cheng said: "Boss, Weiguang Investment Account. There is not enough money, and Alibaba’s next financing amount will definitely be around hundreds of millions of dollars. Excluding NetEase’s stocks in Weiguang’s account, there is only more than 30 million yuan in soybean futures.”
"Let's get in touch first. We're not sure when Alibaba will raise funds. I'll take care of the money."
"Boss, do you still want to consider rubber futures that day?"
After a pause, Guo Yang still vetoed it.
Yang Cheng suddenly felt bad and felt that there was no sense of accomplishment in this job.
Everything is done according to the boss’s will.
A perfect tool man!
……
One week later.
The merger and acquisition research work of Tianhe Seed Industry and Alfalfa Agriculture and Animal Husbandry has also been carried out in an orderly manner.
The initial screening of merger and acquisition targets was not smooth.
The reason for alfalfa farming and animal husbandry is that there are too few goals.
The dairy industry in Long Province can only be regarded as the second echelon in the country, and Guo Yang has set a direction: a dairy enterprise with liquid milk processing capabilities.
The range suddenly became very small, but a suitable target could not be found. As for Tianhe Seed Industry, because there are too many small companies in surrounding counties and cities, and they are mixed, the staff became a little confused not long after starting the investigation.
Guo Yang is also engaged in capital operation for the first time. He has no actual experience in many matters. Most of the external teams he hired are in the fields of law, accounting and other fields.
At this time, Yan Qun suddenly stood up and helped the research team find the direction several times.
At the internal M&A team training meeting, Yan Qun stood on the stage and talked with high spirits.
It is very different from the image of an ordinary farmer in Hekou Village.
“The purpose of mergers and acquisitions is to quickly expand the scale of the enterprise, expand varieties and sales areas.”
“The absolute speed of mergers and acquisitions does not require how fast, but each merger and acquisition must be a high-quality enterprise. So the actual expansion rate will not be slow.”
"Therefore, we must first screen out small companies whose competition mainly depends on price. Tianhe's target should be well-known seed companies in the province."
"We also did a simple survey in the early stage and found out about the provincial market The top ones are: Shazhou Seed Industry, Dongfang Agriculture, Denghai Pioneer, Fengle, Huazhong Jiuquan Branch, Jiuquan Agricultural Science Institute, etc.”
“But these are state-owned enterprises or joint ventures. , and except for Shazhou Seed Industry, which has better profit data, other companies are hovering at the break-even line."
"And among the various crops they reproduce, except for their own varieties of corn and melons. In addition to accounting for more than 10%, vegetables account for only 1%, and there are even no independent varieties of flowers..."
Guo Yang was also studying in the audience.
Hearing this, he felt that although Tianhe had no revenue now, in terms of its own varieties, it was definitely at the forefront in the province.
“In the end, after our screening, we initially set three goals: Shangyang Seed Industry, Lantian Seed Industry and Huihuang Seed Industry.”
Guo Yang was a little surprised. Look at Yan Qun.
“After preliminary investigation, the assets of the three companies do not exceed 35 million yuan, and their management is relatively standardized, and there are no historical problems...”
Huanghuang Seed Industry is Guo Yang Feeling worried, he couldn't help but get up and interrupt.
"Alfalfa Agriculture and Animal Husbandry has also contacted Huihuang before, but the other party seems to have no idea of selling."
The eyes of the people present looked back and forth between Guo Yang and Yan Qun.
Guo Yang also realized that his move was a bit abrupt, but fortunately Yan Qun still looked normal.
“I have heard about this before, but after careful analysis, I still believe that the shareholders behind Glory have the motivation to sell.”
“Maybe the early communication method was wrong.”
Guo Yang sat down.
How did he communicate with Huihuang in the first place?
Mr. Wu, I want to acquire Huihuang. Please contact the shareholders.
Wu Feng:? ? ? ?
Guo Yang roughly recalled the scene at that time, thinking that it might be too direct.
Just listen to Yan Qun continue to teach everyone his experience.
“M&A execution negotiations are very strategic.”
“Many seed companies have a common thought of “being rich means being safe”, and “it’s better to be the head of a chicken than the queen of a cow”. There is resistance to mergers and acquisitions. ”
“So, when negotiating, we should avoid using words such as ‘acquisition and integration’, and at the same time, we should be low-key, move quickly, and make mergers and acquisitions quickly. ”
"The word 'acquisition' is easily misunderstood. We can change it to hoping to cooperate with good manufacturers."
"Integration can also be replaced by the fact that we will support and develop the original brand, solemnly promise, and implement flexibly..."
Yan Qun explained more and more detailedly and in-depth, and also talked about a lot of small things. routine.
From how to investigate and research seed industry companies, to merger and acquisition execution negotiations, and finally how to integrate seed industry breeding and promotion teams.
The employees who participated in the training were all fascinated.
In the end, many other employees in Tianhe’s office also came to join the class.
After the training, thunderous applause erupted in the conference room.
Guo Yang also felt that it was a bit too humiliating for him to ask Yan Qun to go to the village to compete with the villagers and village committee.
Moreover, seeing the employees studying so seriously, he felt that more training sessions like this should be organized in the future.
With paid training, employees’ sense of identity should increase rapidly!
At the same time, it can accelerate the cultivation of senior talents within the enterprise.
Guo Yang continued to think.
The scope of training should also be expanded.
Some potential talents and mid-level and senior cadres can be selected from within, and some training resources and funds can be appropriately invested in these people.
In this way, we can build a mature team as soon as possible.
Synchronization can also strengthen the construction of corporate culture.
When Tianhe seeds, alfalfa forage feeds and dairy products start to be produced and sold, mergers and acquisitions will definitely be inevitable in order to quickly expand the market.
The integration of the corporate cultures of the parent company and the subsidiary is also the key to the ultimate success of the merger.
Guo Yang wrote these down and then assigned them one by one.
After completing these, Guo Yang had to go back to his hometown.
My eldest brother called me many times to ask about the situation, but he always put him off because he was busy.
But always escaping is not an option.
Moreover, he heard that the rumors from the aunts at the entrance of the village were getting more and more outrageous. If he didn't go back, the rumors would be that he would go to jail.
(End of this chapter)