Start from 1980

Chapter 573 Billion Yen
Procter & Gamble.

One of the most successful multinational companies in the world and the most successful overseas company operating in China.

It is also the world's largest consumer goods company.

It has Pampers, Tide, Ariel, Hushubao, Pantene, Rejoice, Head & Shoulders, Crest, Safeguard, Olay, SK-II, Oral-B, Gillette, Braun and many other brands that consumers are familiar with.

In its development history of more than 100 years, Procter & Gamble has always been the "benchmark" of the fast moving consumer goods industry, it has always been able to create excellent new products, conduct brand marketing in a unique way, and reap huge profits.

As of now, it has launched many products.

More recently, in 1983, Procter & Gamble launched Whisper, a high-quality women's personal hygiene product, which this year became the world's leading brand of similar products.

By 1980, Procter & Gamble's sales had exceeded 100 billion US dollars, and it had developed into one of the largest multinational companies in the United States.

Su Chen has already laid out the fast-moving consumer goods business sector, and at the same time, he is also planning to buy those chemical companies abroad.

Thinking of this company now, it is not to acquire Procter & Gamble, he does not have the ability to acquire Procter & Gamble.

But think of the development process of Procter & Gamble.

Most importantly, he is not as rich as Procter & Gamble.

In addition, he has no money to acquire another giant, L'Oreal.

What should I do if I have no money?
In fact, Su Chen thought about adopting a leveraged buyout. This kind of buyout is very special.

In short, it is to use other people's money to buy others.

Its biggest feature is that its asset occupation is extremely low during the acquisition process. Generally speaking, it refers to the strategy in which a company or individual uses the assets of the acquisition target as debt collateral to acquire another company.

At this time, the investment company only needs to pay a small part of the money, and most of the funds come from bank mortgage loans, institutional loans and the issuance of junk bonds (bonds with high interest rates and high risks), which are guaranteed by the assets of the acquired company and future cash flow and income. To repay the principal and interest.

If the acquisition is successful and achieves the expected benefits, the lender cannot share the benefits brought about by the appreciation of the company's assets, unless there is a debt-to-equity swap agreement.

In the process of operation, it may be necessary to arrange a bridge loan as short-term financing first, and then complete the acquisition by raising debt, borrowing money or borrowing money.

In foreign countries, leveraged buyouts often involve the acquired company issuing a large number of junk bonds and establishing a new company with highly concentrated equity and highly leveraged financial structure.

High returns also mean high risks.

Specifically, a leveraged buyout can be roughly divided into the following steps:

Step [-]: The acquirer invests a small amount of capital to establish a shell company;
Step 51: The shell company raises funds from the outside, acquires [-]% of the voting rights of the target company, and realizes the holding of the target company;
Step 51: The target company merges with the shell company, the target company continues, the shell company is canceled, and the target company undertakes the debts incurred when the shell company acquired [-]% of the equity;

Step 49: The acquisition of the target company uses its own assets as collateral to obtain external financing, and acquires the remaining 49% of the equity (or directly replaces the [-]% equity with the target company’s convertible bonds or preferred shares without voting rights), and the target company becomes the acquisition wholly-owned subsidiary.

This kind of leveraged buyout, that is, the LBO business originated in the United States in the 1970s, accelerated in the 1980s, and reached its peak in 1989.

From 1979 to 1989, more than 2000 LBO cases occurred in the United States, with a transaction value of 2500 billion US dollars.

There is a character here, named Michael Milken, who is the "junk bond king" galloping Wall Street in this era, influencing and gently rewriting the history of the development of the securities and financial industry in the United States.

But later this buddy was sentenced to 10 years in prison, compensated and fined 11 billion US dollars, and banned him from engaging in the securities industry.

In addition, Xiaoyanzi and her husband acquired a listed company of tens of billions of dollars with 51 times leverage, but they were banned from the market for 5 years.

The risk is a bit high, Su Chen thought about it back and forth, and finally gave up the idea.

Because this not only has the risk of getting into the game, but also the investment bankers and the company's control of the company. He didn't expect that he would be tired of taking back control in the end.

Getting rich is all about getting rich, and you can't send yourself in. The biggest problem now is nothing more than solving the livelihood problem of garment factories.

In addition, if you can't buy a big company, you can still buy a small company to do it.

For example, Richardson-Vicks, which also owns Ting, Olay and Vicks cardiopulmonary disease health care products, is Sassoon.

Before he returned to China, he asked Cao Jiaxin to talk, but he didn't know if he could win over the rich and powerful Procter & Gamble.

It is really difficult to have no money. Although it looks rich, it seems that there is not much money.

Because he is still in debt.

Su Chen was particularly troubled.

When the money is used up, it will be less.

Now, under the stimulation of the appreciation of the yen, the old Japanese benzene companies are all very bullish.

Su Chen had a hunch that during this trip to Japan, he was very lucky to be able to acquire a few game companies, and don't think about the others, because these Japanese people will definitely not sell them now.

Rubbing her temples, just as she was about to go out to get some air, Teresa Teng called: "Have you been in the hotel all this time?"

"No, just let the people below take care of things. I'm going out to get some air. Are you done?" Su Chen asked with a smile.

Teresa Teng replied: "I'm done, can you pick me up?"

"Of course no problem."

After hanging up the phone, Su Chen went out and asked Zhang Rui to drive. Accompanied by two bodyguards, he went to find Teresa Teng.

……

In fact, in Tokyo is just shopping and eating.

It just so happened that Teresa Teng had nothing to do today, so Su Chen simply walked around with her, such as Tokyo Tower, Ueno Zoo, Imperial Palace Gaien and other places.

Went out for a day.

Back at the hotel at night, Kong Liang called: "Boss, we have reached a capital investment agreement with CAPCOM!"

"How much did it cost?" Su Chen asked quickly.

It seems that the pressure on this company is not small, and the negotiation was completed within a day.

But having said that, Kenzo Tsujimoto is really under a lot of pressure. He is holding his breath and wants to make achievements, but he has no money in his hands, and even rents out the exhibition hall from other people's houses for use, and the guys under him are also All are frugal.

"One billion yen, we own 67% of the company's shares, and we have also included anti-dilution clauses and other content. The agreement is completely beneficial to us." Kong Liang said on the phone.

One billion yen, according to the current exchange rate of 1 US dollar to 200 yen, is not very expensive to Su Chen, and there is also the potential of this company, it seems that it is still profitable.

Su Chen said: "Manager Kong, you have done a good job. I will give you credit for this matter. Take a good rest and contact other companies tomorrow."

"Good boss."

Su Chen was a little worried, and told him on the phone that this time, he was only going to spend tens of millions of dollars to buy these industries. If it exceeded [-] million, it would be too exaggerated.

And now you can't rush to buy and buy everywhere.

Liquidity must be sufficient.

After hanging up the phone, Su Chen kissed Teresa Teng on the face.

"What's the matter? What kind of happy event did you meet?" Teresa Teng asked curiously.

Su Chen said with a smile: "Is there any happy event to kiss you? In fact, I wanted to kiss you very early, before I knew you, but now I have the chance."

"You, glib." Teresa Teng rolled his eyes at him: "However, I think I have known you for a long time, so I was deceived by you. Now you are shopping everywhere, do you still have money? If If not, I have some."

"You still have to keep your money for yourself. Don't tell me I don't have any money for such a big company? Besides, I can't ask you if I don't have money." Su Chen said with a smile.

After a while, he suddenly froze because he realized that he had made a common sense mistake...

(End of this chapter)