"Boss, there's one more thing I have to report to you. Our negotiations with TY Supermarket are progressing very smoothly. Their North American shareholders are willing to sell 80% of their shares to us, but the British shareholders are not willing. In this case, we can only work with other shareholders to fight for power with the British shareholders."
"Can we increase the acquisition price?" Feng Yu asked.
When acquiring a business, they must also measure the company's future profitability. They need to know how many years it will take for the company to recover its investment and how much profits it will bring in.
Usually, the profit margin can be compressed, and the acquisition price can be increased.
Of course, there must be a minimum price, and they cannot exceed it. If they exceed it, they will lose money, and it will not be worth it to acquire the company.
"We can increase it by 2%."
Based on the market value of those companies, an increase of 2% is not a lot and will not affect the decision of the British shareholders.
That supermarket group's market value is only about 10 billion USD, and the British shareholders only own 50% shares. Increasing the acquisition price by 2% will only increase the price by 100 million USD.
Compared to the profits that supermarket group can generate and the impact on the market, 100 million USD will not affect the British shareholders.
"Can't we increase the price?" Feng Yu frowned and asked.
"We can increase the price, but we felt this year's economy will not be doing well, and it might last for another two to three years. No one knows what will happen in another two to three years. If we continue to increase the acquisition price, we might not see any profits for a few years. "
Ralph's analysis was correct. The US economy will be severely affected, and many people will be bankrupted. No one will shop in the supermarket.
In that case, the supermarket's turnover and profits would inevitably decline, and the return period of this investment would become longer.
Investing 10 billion USD does not mean earning 10 billion USD back. Inflation, the average economic growth rate, etc. That is to say, 10 billion USD of investment, 20 billion USD of return 10 years later is the return of the investment, and then it is the return of the investment.
"Have you calculated the cost savings if this supermarket group is merged with Tai Hua Supermarket Group? Have you calculated the effect of this supermarket group on our other retail businesses? "
Ralph shook his head. "Boss, isn't this supermarket group managed by Wind and Rain Holdings?"
"No. This company will be under Tai Hua Supermarket Corporation. That's why we need to recalculate some of the data. You can contact Liu Chuanzhi about this."
"Ralph, the retail business is not the core business of Wind and Rain Holdings Group. Our core business is financial investment, culture and entertainment, IT technology, and perhaps music electronic products and the Sixth Sense Company."
"On the other hand, Taihua Holdings has machinery manufacturing, retail, medicine, IT electronic products, electrical appliances, real estate, etc."
"Although we are a diversified development group, we should also have some focus. The two holding companies should cooperate with each other, not compete with each other. "
There were too many diversified companies in the world, and many of them could even cover most of the industries in the world. But in comparison, those who focused on investing in a few directions would rise faster.
It's all Feng Yu's companies. No matter which side makes money, it's Feng Yu who makes money. But it's different for Ralph and the rest. The profits from Taihua Holdings will not increase Ralph's income.
But Feng Yu's words are orders. Although Ralph is reluctant, he will not reject Feng Yu.
Anyway, Ralph's life had changed after he started working for Feng Yu. Very few people at his age can become a top executive of a Fortune 500 company.
Furthermore, Wind and Rain Holdings Group's subsidiaries are all in the Fortune 500. For example, Amazon.
As long as he follows Feng Yu, he will have more opportunities to make money in the future.
"Boss, I have another problem. We can sell the acquisition of the automobile business to Tai Hua Holdings, and the initial funds will be paid by China's XX Group. But we are short of 7 billion USD for the acquisition of this supermarket group. "
"Although we can ask the subsidiaries to hand over part of their profits in advance, it is not enough. How are we going to raise our funds?"
Wind and Rain Holdings Group's most profitable subsidiary is Wind & Rain Consulting, followed by the Sixth Sense Group, Aiwa, and Amazon. As for Google, Facebook, and other subsidiaries, they are not making any profits yet.
But the subsidiary's biggest source of income, Wind and Rain Consulting, was investing heavily and had mobilized all their funds. They will not be able to hand over their profits this year. Only the Sixth Sense, Aiwa, and Amazon's profits will not be enough.
Under normal circumstances, those subsidiaries will hand over their profits at the end of the year. Even if they collect their profits in advance, it will not solve their current problems.
Ralph had wanted to say that since the acquisition of the supermarket group is for Taihua Holdings, then Taihua Holdings should hand over their funds first.
But Ralph felt that since Feng Yu had invested so much in Wind & Rain Consulting, he should have transferred all the funds from Taihua Holdings.
Feng Yu thought for a while and felt this is a problem. By the end of next year, Ralph will get back all his investments, and the profits will be high. This amount of money should not be a problem.
But now, Feng Yu has two choices.
One is to ask Wind & Rain Consulting to invest less, and Feng Yu will have sufficient funds. But this is a rare opportunity, and Feng Yu felt it is a pity to give up.
The other option is to borrow money from other banks. Feng Yu cannot borrow so much money from others, and he can only borrow from the banks.
Taihua Holdings wants to get a mortgage from Minsheng Bank for the company's expansion and development. But Wind and Rain Holdings Group cannot continue to get loans from Minsheng Bank, as the bank does not have enough funds.
"Let's talk to the banks about the mortgage."
"Boss, the interest rates are very high now, and many of our assets are in the doldrums. It is not worth it to get a mortgage." Ralph reminded Feng Yu.
"It's alright. We can earn back the interest. Oh, let me settle this. Maybe we can get a loan from Hua Xia's banks. I will return to China in a few days, and I will let you know after I settle this. "
The interest rates for loans are very high, and the interest will be earned by other banks. Rather than letting the US banks earn the interest, Feng Yu might as well let Hua Xia's banks earn the interest. But it will be troublesome to get a loan in USD for such a large amount.
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