"Dear, I am going to Old Zhang's place for dinner tonight. Tell Mom and Dad not to wait for me."
"Ok. My husband is so capable. Even the Provincial Government needs your help." Li Na replied proudly.
Feng Yu touched Li Na's nose and kissed her forehead. He changed his clothes and went out.
Feng Yu carried the roast duck he bought from Quanjude into Zhang Ruiqiang's neighborhood.
"Look at you. You always bring food when you come over." Zhang Ruiqiang's wife laughed.
"I can't just eat for free all the time. Furthermore, this is my house. It's in a thermos box, and I can eat it later."
Zhang Ruiqiang's wife knew Feng Yu will be coming over at night and started preparing dinner.
Eh? There is another guest in the apartment. Feng Yu looks familiar and remembered. Isn't this Xu Changyou's former secretary? Now, he is Bing City Government's second-in-command.
After Xu Changyou retired, those people are now working for Zhang Ruiqiang. Zhang Ruiqiang and Zhao Guoliang stood up when they saw Feng Yu.
"You're here. Wash your hands and prepare for dinner."
During the meal, Zhang Ruiqiang's wife ate very quickly. In less than ten minutes, she put down the bowl and chopsticks, saying that the program was about to start, and went inside to watch TV. Before leaving, she also made a pot of tea for them.
"Feng Yu, tell us how to expand our Bing City Beer. Guoliang is in charge of the economy now, and he will be in charge of the actual operations. "
Zhao Guoliang nodded to Feng Yu. "General Manager Feng, please give me some pointers."
"It's not pointers. It's just a discussion. I am talking from a businessman's point of view on how to use a small company to swallow a big company. "
Use a small company to swallow a big company? Zhang Ruiqiang and Zhao Guoliang looked at each other. Why does this sound like a snake trying to swallow an elephant?
"It's the easiest for a listed company to expand. When the company runs out of funds, it can issue shares to raise funds. Or it can swap shares to control the other company's shares. I have such a company in the US. With this method, it grew from a few hundred million USD to a 200 billion USD giant in a few years. "
"What happened next?" Zhang Ruiqiang asked.
"Later, the company went bankrupt." Feng Yu shrugged.
Zhang Ruiqiang: "…"
Zhao Guoliang was confused. You told us the solution, but it turned out to be an example of a bankrupt company?!
"That company went bankrupt for several reasons. The first reason was that they wanted to use this method to become number one in the world. Before this, they were already among the top three in the world. To be able to achieve this in just a few years was considered a miracle. The second reason was that there was a problem with their business decisions. They tried to achieve everything in one go, but the industrial layout was too far away. As a result, a lot of idle resources were wasted, and they could not create the expected value. This dragged down the company's capital chain. The third reason is that they falsified their financial reports, and I found someone to expose this news, causing them to have a crisis of trust. All the shareholders sold their shares, causing their stock prices to collapse. "
Zhao Guoliang thought to himself. You are using this example to make a company go bankrupt? Why do I feel that General Manager Feng is not reliable?
"Aside from these three reasons, this company's expansion method can be considered a classic. This is because every time they expand, they do not need to take out any cash. They might issue new shares or exchange their shares. They do not need to fully invest in the new company. They just need to be the controlling shareholder. "
"There is one more thing we must remember. We are not planning to monopolize the market, and we will not face any resistance. Also, we will not falsify our financial reports, and we must not falsify our financial reports. This is a taboo for listed companies. If we are found out, the company will face a high risk of bankruptcy. "
"General Manager Feng, why don't we think of ways to monopolize the market? I heard from my leader that you are not going to acquire Tsingtao Beer, Capital Beer, etc. Why? "
"Because these two companies used to be the best-selling beer in Hua Xia. Not only in China, but also overseas. Also, these two companies are owned by many national investment companies. Simply put, they are not short of money. If we want to acquire them directly, they will not be able to afford the price. Also, if we exchange shares, they will ask for an astronomical number of shares, and they will not be willing to let us be the controlling shareholder. Most importantly, the higher-ups will surely intervene. "
Zhao Guoliang nodded. If Bing City Beer is acquired by Tsingtao Beer, as the City's leader, he will also intervene.
"There is another important reason. This kind of expansion will cause the company to be in serious debt. A company's debt is too high, and it is not a good thing. Once the company's cash flow is too high, it will be the straw that breaks the camel's back, and the company will be in serious trouble. "
WorldCom had done this in the past. They had borrowed money, raised funds, and borrowed money to develop their businesses. But they do not have much cash.
Although cash is not the most important factor in a company's development, it is impossible without cash.
"Then how should we expand? From the south to the north, annexing them step by step? Should we issue more shares? "Zhang Ruiqiang asked.
"Why must we expand from the south to the north? We should use the strategy of expanding from one province to another. As long as there is a beer company of a certain scale, we should try to acquire it. We can let Beidacang continue to inject funds into Bing City Beer, and we can also get loans. Of course, issuing more shares is the easiest way, but we must not blindly expand. "
"How about this? When you issue more shares, give me a portion of the funds, or I will help you find buyers. I believe many people will be interested in Bing City Beer's shares. We must remember that when we acquire other breweries, we must act fast and not give them time to negotiate with other companies to raise their prices. "
"If we can acquire all of them, we must acquire all of them quickly. But if not, we can also get the controlling stake. If we can't get the controlling stake, we can also get the shares. At least, we must get them to agree to produce Bing City Beer. This way, Bing City Beer can be found in all provinces, and we will become the most famous beer in Hua Xia. "
"As for the sales, you can talk to Zong Qingxian. I think if you are willing to let Taihua Holdings invest in Bing City Beer, then Taihua Holdings can share their beverage distribution channels with Bing City Beer. This is our Hua Xia's best beverage distribution channel, and no other company can compete with us. With the help of TV and online advertisements, Bing City Beer will become the most famous beer brand in Hua Xia. "
Zhang Ruiqiang looks at Zhao Guoliang, and they can see the confidence in each other's eyes. They must go back and plan for Bing City Beer's expansion.
… …
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