Chapter 1699 Funding Issues

"Boss, there is one more thing to report to you. Our negotiations with TY Supermarket are progressing very smoothly. Their shareholders in North America are willing to sell us 80% of their shares, but the British special purchase is not. Yes, in this way, only by uniting with other shareholders can we compete for power with Tesco."

"Can we increase the purchase price?" Feng Yu asked.

When acquiring a business, it is also necessary to measure the future profitability of the company, how many years it will take to recover the investment, and then how much profit it will bring to the company in the following time.

Usually, this profit margin can be compressed, which means that the purchase price can be increased.

Of course, there is a reserve price, which cannot be exceeded, and you will lose money if you exceed it, so the acquisition is very uneconomical.

"It can be increased by two percent."

Judging from the market value of those companies, an increase of 2% is not too much, and it may not be able to affect the decision to make a special purchase.

The market value of that supermarket group is only about 10 billion U.S. dollars, and they deliberately purchased only 50% of the shares, and increased the purchase price by 2%, which is an increase of 100 million U.S. dollars at the very top.

Compared with the profits that the supermarket group can create and its impact on the market, one hundred million dollars obviously cannot impress the special shopping group.

"Can't you continue to improve?" Feng Yu asked, frowning.

"Continuing to increase is also possible, but after measuring the market this year, we believe that the economic situation this year will not be very good, and it may last for two or three years. After two or three years, no one knows what will happen. Continue to increase the purchase price, It is very likely that we will not see profits for several years."

Ralph's analysis is correct. The economy of the United States will definitely be severely affected, and many people will go bankrupt because of this. Why do so many people go to the supermarket to shop?

Then the supermarket's turnover and profits will inevitably decline, and the period for this investment to pay back will become longer.

If you invest 10 billion U.S. dollars, if you earn back 10 billion U.S. dollars, you will get back your capital. You also need to calculate inflation, average economic growth rate and so on. The dollar is called back, and then the money earned.

"Have you calculated the cost savings that this supermarket group can save if it merges with Taihua Supermarket Group? Have you calculated the promotion effect of this supermarket group on the expansion of our other retail businesses?"

Ralph shook his head: "Boss,

Isn't this supermarket group run by Fengyu Holdings Group? "

"No, this will be merged into the Taihua Supermarket Group, so some relevant data need to be recalculated. You can contact Liu Chuanzhi about this."

"Ralph, the retail business is not the core business of Fengfeng Holding Group, neither is the car, nor is the electronics. Our core business is financial investment, cultural entertainment industry and IT technology, and perhaps also music electronic products and the sixth sense. a special company."

"Taihua Holding Group has machinery manufacturing, retail, medicine, IT electronic products, electrical appliances, real estate and so on."

"Although we are a diversified group company, we should also have some focus. The two holding groups should cooperate with each other rather than compete with each other."

There are too many diversified group companies in the world, and the diversification of many companies can even cover most of the industry categories in the world. But in comparison, those who focus on investment and development in several directions will rise faster.

It's all Feng Yu's company. Wherever it makes money, it's Feng Yu who makes money. But they are different for Ralph. The Taihua Holding Group makes money, which obviously cannot increase his income.

But the boss's words are orders, although he is a bit reluctant, he will not refute.

Anyway, after he joined the boss, his life has undergone earth-shaking changes. There are very few executives of Fortune 500 companies at his age.

What's more, the subsidiaries of Fengfeng Holding Group are among the top 500 in the world, such as Amazon Group.

As long as you follow the boss, you will have more opportunities to make money in the future.

"Boss, there is another problem. We can resell the car business to Taihua Holding Group. The initial funds are also advanced by Huaxia Group. But for the acquisition of the supermarket group, we have a gap of nearly 7 billion U.S. dollars."

"Although the subsidiary can be allowed to hand over part of the profits in advance, it is not enough at all. How should we solve the problem of funds?"

Originally, the subsidiary of Fengfeng Holding Group that turned in the most profits was Fengfeng Consulting, followed by Sixth Sense and aibsp; but at present, Fengfeng Consulting, the largest source of income for the subsidiary, is making major investments and has mobilized all funds. Only the sixth sense and aibsp have handed in their profits; under normal circumstances, those subsidiaries hand in their profits at the end of the year.

Ralph actually wanted to say that since the acquisition of the supermarket group was for the Taihua Holding Group, the Taihua Holding Group should be asked to hand over the money first.

However, he felt that since the boss had invested so much in Fengyu Consulting, maybe all the funds from Taihua Holding Group would have been transferred away, right?

Feng Yu thought for a while, this is a problem. It is said that by the end of next year, when his investment is recovered, he can make a large profit, and this amount of money is not a problem at all.

But now, he was about to face two choices.

One is to reduce the investment of Fengyu Consulting, and naturally the funds in the account here are sufficient, but this kind of opportunity can only be encountered once in many years, Feng Yu feels that it is a pity to give up.

Another way is to borrow money first. It is definitely not possible to borrow so much money from someone, so the only way to borrow money is to find a bank.

Taihua Holdings Group intends to take a mortgage loan from Minsheng Bank first for the expansion and development of the company, but Fengfeng Holding Group cannot continue to borrow from Minsheng Bank, and Minsheng Bank does not have so much funds.

"Go to the bank and talk about a mortgage."

"Boss, the interest rate is very high now, and many assets are also in a low ebb period. Mortgage loans are not very cost-effective." Ralph reminded.

"It doesn't matter, the interest money can be earned back. By the way, I will take care of this matter, maybe I can get a loan from those commercial banks in Huaxia. I will return to China in two days, and I will let you know when it is settled."

The interest on the loan is very high, and the interest has to be earned by other banks. It is better to earn it for banks in China than for banks in the United States. It may be troublesome to loan such a large amount in US dollars.

... (To be continued.)