Be it Fu Xia, Li Aijun, or even Pinsong, all of them had made rapid progress in the past three years. However, with the expansion of scale, the success rate of integration had also decreased.
What opportunities and potential risks were hidden in the integration process, and what new trends were emerging?
Li He himself did not know if he had reached the stage where he needed to integrate resources. How should he carry out the integration process?
However, there was one thing Li He knew. Due to everyone's maturity in the market and the growth of China's economy, every factory had reached a certain stage.
At this stage, Li He did not have the determination to carry out industrial integration and mergers. He believed that it would take some time to adjust the industrial structure of China's traditional industries. At present, the industrial structure was small, scattered, and weak.
Li He knew that in a few years, due to the attractive market size, the industry prospects were good. As a result, a large number of businessmen would rush into those new industries. From steel to chemical, to oil, to metals, to automobiles, everyone would come to do it. Batches of factories would emerge like mushrooms after a spring rain. Low-level, low-starting, repetitive construction, and manufacturers would emerge.
As long as it was low-level, low-starting, repetitive construction, there would definitely be manufacturers and vicious competition. In the end, everyone would fight a price war, and the market order would be chaotic. This would often lead to the entire industry suffering losses or small profits, and the entire industry would fail.
The manufacturers in the industry would find it difficult to survive. This was the industry characteristic of the American Morgan Era 100 years ago. China had to go through this stage. The vocabulary used to describe the industry characteristics of the American Morgan Era could be used to describe the industry situation in China in the next few years.
For example, repetitive construction, manufacturers, vicious competition, endless price wars, market order, etc. However, he had to integrate. If he did not integrate, he would face an even more urgent bottleneck in the transformation. He would be the first to hit the ceiling, and Pinsong and the rest might drag him down.
China's overall industry development was uneven. Some industries were highly concentrated, and some industries had excess capacity.
For the new economy industry, the leading enterprises had not been born yet, or the leading enterprises that were born did not have outstanding operational efficiency and business model that surpassed other enterprises. Li He's capital was actively observing the industry integration opportunities.
Since 1990, mergers and acquisitions in China's industries had been happening. However, the frequency of mergers and acquisitions had increased in the past two years. The next few years would be a period of high frequency mergers and acquisitions.
In short, the imbalance of industrial capital in China was exactly the investment opportunity for Li He.
He had already started to invest in controlling shares and had invested in many companies. Many companies in emerging fields had just emerged. In fact, there were many opportunities for mergers and acquisitions in traditional industries.
Some were horizontal mergers and acquisitions in the same industry, and some were vertical expansion of the industry chain.
His biggest hope was to create one or two leading enterprises through mergers and acquisitions. Resources would become more and more concentrated.
Real estate, finance, materials, and energy were all important areas for mergers and acquisitions.
Therefore, for Li He, the integration strategy could be used as a means of retreat and give them a chance to be independent. After all, they had followed him for so many years, and he should give them a place of their own. Of course, it could also be used as a way to continue working together to expand the main business and corresponding industries. It could also be used as a way to further integrate the value of a certain industry after it entered a plateau period.
Li He's strategy was different from the equity investment ideas of many entrepreneurs. He needed a professional team with industrial capabilities, financial capabilities, and the ability to invest in different domestic and overseas markets to carry out the corresponding operations.
His development was completely based on his foresight. He did not have much of a role in the entrepreneurial team. The ones who suffered the most were people like Pinsong and Li Aijun. Therefore, he felt guilty and grateful at the same time.
At this moment, he suddenly said that he wanted to integrate. He had to consider their feelings, give them the right to choose freely, and take into account their many years of friendship.
Pinsong looked at Fu Biao and said nonchalantly, "I'll follow Brother Erbiao. Brother Erbiao will be the leader. I'll listen to him."
He said this heroically, but only he knew whether it was his true thoughts. Because, in terms of hierarchy, although he used to follow Erbiao, his current status was not lower than Erbiao's.
There were very few people in Sijiu City who did not know of him, Boss Ping.
Erbiao saw that Li He had lit a cigarette as well, so he followed suit. He smiled and said, "Don't be jealous, kid. In the past, when we were all brothers, we relied on our fists and I relied on my physical strength. You guys flattered me too, so I accepted it. But it's different now. Just like what Brother Li always says, we have to rely on our brains to make a living. "
With Li He around, it was not easy for him to be arrogant. He also appeared to be approachable to Pinsong.
Li He asked Su Ming, "What do you think?"
"They're both silly. Brother, you have to make the decision." Su Ming suddenly felt a little alienated from Li He. He felt a little upset.
Guo Dongyun interrupted, "I think that Mr. Ping and Mr. Fu are both very capable people. There's no need to integrate them. Everyone here has properties under their names. If we really integrate them, it will be a huge property enterprise. "
Li He flicked the ash off his cigarette and said, "Continue."
Guo Dongyun continued, "According to my idea, we can integrate into four property companies. Mr. Pinsong's Dida Real Estate can separate from Dida Group and form its own. Mr. Fu Biao's Xiangyang Real Estate is second to none in the south, so there's no need to merge them. The scale of Mr. Shen Daoru's Yuanda Real Estate is only below Guo Bingjiang's Sun Hung Kai. As for Miss Chen Lihua's Fuhua Real Estate, it's second only to Whampoa in the high-end property industry in Hong Kong. The four companies can form an executive committee to achieve unified accounting standards, coordination, and resource sharing. "
She had already thought it through very clearly. Since these people did not accept her, there was no need for her to rope them in. Whether it was to serve them or to fool them, it was not her original intention and character. She might as well start from scratch. In terms of scale, Dida Group was already second to none in the world. There was no need for her to eat in the same pot with these people.
Li He lit his third cigarette irritably and sighed. "Alright then. Pinsong, your property company can become independent from Dida Group."
She thought about it and realized that it made sense. If Pinsong and Guo Dongyun had a conflict in the future, he would have to worry about it.
"Thank you, Brother." Pinsong and Fu Biao said in unison. They breathed a sigh of relief at the same time and agreed happily. Other than Li He, they definitely did not want to be suppressed by anyone else. It would be great if they could become independent.
Fu Xia did not wait for Li He to ask and said hurriedly, "Feng Lei is still young, so the tannery is still a little inconvenient. Let Brother Aijun take over."
Feng Lei also lowered his head and agreed in a low voice. The tannery was his blood, sweat, and tears, so he had to grit his teeth and agree.
Li Aijun hurriedly waved his hand. "No, no, I don't have the experience to care about that. As for Feng Lei, no one is more meticulous than him. "
He owned two shoe factories, one in Jinjiang and the other in the capital. He was so busy that he did not have the time to care about the tannery. Moreover, he really did not care about the profits of the tannery. The main purpose of opening the tannery was to ensure the supply of shoes for his shoe factory.
"Feng Lei it will be then. You guys can discount the price later and get whatever you want. "Li He saw that Li Aijun was sincere, so he was willing to give Feng Lei a chance.
"Then …" Feng Lei looked at Fu Xia hesitantly. He still needed Fu Xia to make the decision.
Fu Xia smiled and said, "What are you standing there for? Your Brother Aijun is giving you a chance. Hurry up and thank him."
Feng Lei stood up happily and said, "Thank you, Brother Aijun! Thank you, Brother Aijun!"
He was very excited.
Li Aijun smiled and said, "Don't be too happy. Let me warn you first. Don't ruin my goods."
Feng Lei said confidently, "If I ruin your business! You can hit me with your shoehorn! "
Feng Lei laughed loudly again.
The one who was the least confident was Xiaowei. He was afraid that his electronics shop would be merged under Lu Bo's name. In terms of experience and capability, he was no match for Lu Bo!
Most importantly, Li He had always looked down on him.
He did not dare to say anything at that moment. Otherwise, he would not even have a place to cry!
He was not the only one who was nervous. The Huang brothers who were sitting in the second row were also nervous. The electronics shop was also their blood, sweat, and tears!
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