My rebirth is different

Chapter 622 The Valuation of Jiale

In fact, if you let outsiders look at it, the company's profit margin is still good.

With a revenue of 100 billion, the net profit is 19 billion. If you compare it with the retail industry, it is more than enough.

If this profit margin is placed more than ten years later, it will definitely be very eye-catching.

But in 2003, it was really common.

In those days, the retail industry was almost considered a profiteering industry!
Hu Jinchang's valuation of 100 billion is also reasonable, because the real industry, especially the retail industry, if you refer to similar listed companies, in the case of a sluggish stock market environment, the price-earnings ratio rarely exceeds 10.

Generally, they hover around four or five or six.

If the valuation is based on a price-earnings ratio of 5 times, then Knorr is worth almost 100 billion yuan.

"100 billion?! Isn't this...too high?" Ren Zhiwen exclaimed. He didn't expect Hu Jinchang to dare to say that Jiale Company has only been established for a year, and now it can be worth 100 billion, right? It's not that I don't take money too seriously.

"Haha, Mr. Ren, isn't this a negotiation? 100 billion is not a wild asking price, and there is still data to support it. Of course, how much you can sell in the end depends on their bid. If it doesn't work, you can sell some of the shares. Okay, we can still be named shareholders." Hu Jinchang said nonchalantly.

Zhou Mengyi also thought for a while, and she said, "Actually, I feel that the price Mr. Hu said is still too low!"

Everyone in the conference room looked at Zhou Mengyi, 100 billion is still too low, the total appetite this week must be too big!
"Then how much do you think it should be worth?" Yu Wenfei asked calmly.

"Although our Jiale's annual net profit is less than 20 billion, we are currently in a monopoly position in East China. This influence and popularity should also be factored in. Besides, our Jiale is a membership system, as long as it develops steadily Going on, there will be more and more members, and the revenue will also increase, which is definitely a high-quality asset. Therefore, when valuing, we should give an appropriate increase in the price-earnings ratio." Zhou Mengyi said slowly.

This is also reasonable, goodwill is also part of the company's assets, not to mention, can a sunrise company be the same as that kind of "old-fashioned" company?

Jiale is like the "sun" at seven or eight o'clock. It has just risen, and there is still a lot of room for future development.

"According to your statement, how much is Jiale worth?" Yu Wenfei asked.

Zhou Mengyi shook her head and said, "It depends on the ideas of several acquirers. If they are in a hurry to acquire Jiale and they value East China very much, then the valuation will increase significantly. But if they all think that Even if you don’t buy Jiale, if you can compete with us by building your own channels, you probably won’t give it a valuation of 100 billion. If you ask me, 120 billion to 150 billion is a reasonable valuation!”

Everyone was amazed, well, now that Zhou Mengyi is here, the value of Jiale has increased by billions!
Of course, Yu Wenfei has the final say on how much to sell in the end. After all, he is the boss. Others, including Zhou Mengyi and Hu Jinchang, only have the right to make suggestions, not to make decisions.

If Yu Wenfei really intends to sell it for 50 billion yuan, Zhou Mengyi will not have any objections, and if Hu Jinchang is unwilling, he can keep his part of the shares and not sell them, which will not affect the overall situation.

At present, the shareholding composition of Jiale Magic Capital Company is that Xiangjiang Jiale holds 80.00% of the shares, and Hu Jinchang holds 13.00% of the shares.

Behind Xiangjiang Jiale, of course, is Yu Wenfei, and Zhou Mengyi also holds a small share in it, but she doesn't think that she is a shareholder, and Yu Wenfei is the only one to follow in everything.

At the meeting, Yu Wenfei did not say what his psychological price was...

…………

On the morning of August [-]rd, the Wal-Mart delegation first came to the Knorr headquarters.

Yu Wenfei led a group of executives and warmly welcomed Scott and others into the meeting room.

"Everyone, to be honest, our company has also received acquisition offers from Carrefour and China Resources Group in the past two days. Your Wal-Mart is the first to contact us, so I will meet and negotiate with you first. But this does not mean, I will give up meeting with Carrefour and China Resources Group."

At the very beginning, Yu Wenfei laid things out straight to the point.

Scott raised his eyebrows, not surprised. It would be strange if Carrefour, an old rival, did not compete with him.

However, the participation of China Resources Group made him a little more vigilant.

"Well, thanks to Mr. Fei for being open and honest, then we will not go around in circles. We, Wal-Mart, attach great importance to the mainland market, and Knorr's performance this year has also been very impressive, so we think that Knorr Supermarket is our Wal-Mart. A beneficial addition. Moreover, after the acquisition of Knorr Supermarket, we will not change Knorr’s business model. Believe me, Wal-Mart also has many years of experience in operating membership-based supermarkets, and our Sam’s Club is doing well. This time, I came here with sincerity!"

Scott smiled and said confidently.

"Okay, let's start then." Yu Wenfei responded.

Yu Wenfei had experienced this kind of negotiation too many times, so of course it would be effortless to deal with it.

Talking and talking, it revolves around the core issue of "how much to sell".

Yu Wenfei didn’t quote directly, but asked the other party how much they were going to pay to buy Knorr, because this time it was Wal-Mart who took the initiative to buy Knorr, not Knorr to come to sell itself.

Negotiations are like this, whoever talks about the price first loses. Of course, if you are skilled, you can save the situation later.

"We carefully evaluated Knorr's operating conditions, fixed assets, and current assets, and invited third-party companies to participate. In the end, we agreed that the 42 Knorr supermarkets in East China, including the company's headquarters, are worth 62 [-] million yuan." Scott reported a figure cautiously.

62 billion, this is his first round offer.

Yu Wenfei shook his head, but he didn't agree. He smiled and said, "Maybe you don't know much about Jiale's business, Mr. Zhou, please introduce us to everyone."

Zhou Mengyi tidied up her clothes, stood up, turned on the computer and projector that had been prepared, and began to explain various key data of Jiale to the Walmart people.

Knorr is not a listed company, so many financial data are commercial secrets, and it is difficult for Wal-Mart to investigate clearly.

Scott and the others also had serious faces and listened attentively to Zhou Mengyi's explanation.

The number of more than 500 million members shocked him. He understood what this meant. The membership fee alone was 20 billion a year!
Thinking about his quotation of 62 billion RMB, Scott blushed a little, and at the same time glanced at Yu Wenfei gratefully. In his own words, he probably would have kicked out the person who made the quotation.

As a veteran who has worked in the retail industry for more than 20 years, Scott is also very familiar with membership-based supermarkets. Before coming to the mainland, he managed a Sam's Club store for a while.

The lifeblood of membership supermarkets is the number of members!
As long as the number of members reaches a certain scale, it will be invincible, and competitors will not be able to enter this market at all!

Now he is also very fortunate that he did not act rashly and open a store to compete with Jiale, because when his supermarket opens, Jiale estimates that the number of members will exceed 1000 million by then!

That also means that in the entire East China region, families with sufficient spending power have become members of Knorr.

How can Wal-Mart compete with Knorr?
Now, he has finally seen the fact that if he wants to win the East China market, the only way to go is to acquire Jiale!

If Knorr is acquired by a competitor, it will definitely be difficult for Wal-Mart to enter East China.

…………

After listening to Zhou Mengyi's explanation, Scott asked cautiously: "Can I have a copy of this data?"

Yu Wenfei nodded, and signaled the staff next to him to hand over the prepared materials to Scott. Of course, let the other party know these things, otherwise, how can others give you a reasonable valuation.

"Then Mr. Fei, today we are in contact for the first time. I emphasize again that I came here with sincerity. The quotation just now is indeed a bit unreasonable. After we go back, combined with the financial data you gave us, we will immediately Evaluate again. I hope we can agree on a price when we meet next time." Scott said sincerely.

This kind of big deal involving billions or even tens of billions is obviously too childish to make a decision at one meeting. If it is said that the negotiation lasts for several months or even a year, it is normal to engage in back and forth tug-of-war.

But Yu Wenfei obviously wouldn't be so grumpy, he would sell it if the price was right, and forget it if it wasn't good, Jiale didn't have to worry about selling it.

"Okay, I hope to meet again next time. Mr. Scott's quotation can make me feel your sincerity. In addition, I will contact the delegations of Carrefour and China Resources respectively in the afternoon and tomorrow. For business, of course it is the one with the highest price. Yes." Yu Wenfei said unhurriedly.

Scott is not too worried, because he understands that it is impossible for a competitor to see Yu Wenfei once and make a decision to buy Knorr.Everyone is still on the same starting line, the key is to meet next time, and that will be the decisive moment.

…………

After meeting with the delegations of Wal-Mart, Carrefour, and China Resources Group, the first phase was completed.

Wal-Mart quoted 62 billion yuan, Carrefour quoted 65 billion yuan, and China Resources Group quoted a little higher, 70 billion yuan!

Obviously, all the quotations did not meet the psychological expectations of everyone in Jiale.

The internal financial data of Jiale were given to the three companies separately, and they were asked to go back and continue to evaluate. The second phase of the negotiation will be held again at another date.

(End of this chapter)