Reborn in Hong Kong as a Tycoon

Chapter 499 Current Situation and Financing Matters of Software Companies (Two in One)

New Century Software Corporation.

Because of the appointment with Wade Thomas, Phil Smith, and Deren Lawrence to meet here at around ten o'clock in the morning, Lin Baicheng came to the company in advance.

"Chairman!" "Good morning, Chairman!".
Lin Baicheng has come to New Century Software Company quite a few times, so apart from the new employees, the old employees all know that he is the chairman of the company, and they greet him one after another.

"Good morning!"

Lin Baicheng also nodded to them.

"Call Bella and Sherland to my office."

Lin Baicheng talked to Qin Lan who came with him.

"Yes, Mr. Lin."

Qin Lan responded, she has been here quite a few times and is very familiar with it.

Not long after Lin Baicheng came to the office, Isabella and the director of the software R&D department, Aiden Sherland, came over at the same time.

"Bella, I've already contacted Goldman Sachs and Citigroup, and told them about the company's financing, the company's revenue and profits since its establishment, and the market prospect of the software, etc. Have you prepared a report yet?"

"When you said this a few days ago, I started to prepare, and now it's done, it's on my desk."

Isabella responded aloud, this kind of thing should be prepared in advance, she still knows this.

Lin Baicheng was satisfied with Isabella's work efficiency: "Very well, around ten o'clock, Thomas and the others will come over, and then you can truthfully introduce our New Century Software Company to them. You are the manager of the company. You will be responsible for following up when the time comes.”

Isabella responded: "I will do well, Chairman."

Nodding his head, Lin Baicheng looked at Edwin Sherland and said, "Sherland, the company is still developing database-related software, and now it is also developing a personal computer operating system. Is there any problem with your software department? Do you need to set up a separate department? "

Aiden Sherland replied: "Chairman, before this, our software department has actually been divided into two groups, one group is responsible for the maintenance and update of office software, and the other is responsible for the research and development of database software. It's just a research and development team for personal computer operating systems."

"Divided into three groups?"

Lin Baicheng looked at Isabella after hearing the words: "Bella, the software department is divided into three teams, is it a bit bloated? Did you feel any problems when you were managing it?"

Isabella said: "Chairman, there are actually some problems in the software department, and I have a solution."

"What do you think."

Lin Baicheng gestured.

Isabella: "Let's not talk about the personal computer operating system business that has just begun to recruit people. Among the two businesses of the company's office software and database, because the office software has already started to make profits, and the performance is very good. This involves a Employee bonus issues, so those with good skills in the software R&D department want to stay in the office software R&D team, while junior employees and employees with average skills can only stay in the database R&D team.”

"The consequence of this is that the research and development of the database lags behind, while the office software does not need so many excellent talents, resulting in a waste of human resources."

"However, in the face of this situation, we can't force excellent employees to go to the database research and development team with worse performance. If we do this, excellent employees will definitely complain, and it is not easy to push them out of the company."

"So, I plan to separate the office software R&D team and set up a dedicated department, which happens to increase their salaries to prevent them from being poached by other companies."

"At the same time, conduct performance appraisal on the R&D progress of the database R&D team, set up bonuses, and after the software R&D is completed, consider whether to establish an exclusive department based on the profits the software brings to the company."

"Currently, both the database R&D team and the PC operating system R&D team stay in the software R&D department, and the company will promote them and raise their salaries only after the respective teams have made achievements."

"Bella, if you arrange it this way, the position of the software R&D department will change a bit. Have you discussed this with Sheilan?"

Lin Baicheng said and looked at Edwin Sherland. If he really did what Isabella said, it would be tantamount to cutting Edwin Sherland's power. After all, it is impossible for the independent team to be handed over to him to manage.

Isabella nodded: "I've discussed it with Supervisor Sherland."

"Chairman, the manager promised me that if our department has software that we want to develop, as long as it is not that kind of unrealistic fantasy, she is willing to grant some funds to us. If we can make achievements, she even agrees to establish a related department. R&D team."

Aiden Sherland explained aloud that the two had exchanged interests, otherwise how could Aiden Sherland agree to be deprived of power.

Aiden Sherland includes some technical masters in the software department. They are also confident. The office software and database previously developed by the company are Lin Baicheng's ideas, and the research and development direction is also provided by Lin Baicheng. They are equivalent to tool people , so they want to make a product led by them, make a real contribution to the company, and at the same time show their ability.

"Nice idea."

Lin Baicheng expressed his appreciation for this, and he said to Isabella: "Don't be stingy in terms of research and development funds, but you must do a good job of reviewing the applied research and development projects." Now that the Internet age has not yet started, Lin Baicheng does not mind developing this area. With investment, maybe Aiden Sherland and the others will one day develop a product that can bring a lot of profits to the company.

"Yes, Chairman."

Isabella responded.

Lin Baicheng continued to ask: "How is the development of the international market going?"

Isabella said: "There is some progress at the beginning, but the revenue is incomparable with the domestic market, and the international market must continue to be developed."

Lin Baicheng asked: "Did you encounter any problems?"

"The company currently chooses Canada, the United Kingdom and Australia for market development. First of all, the biggest problem is that there is a big gap between the popularity of computers in these countries and the domestic market. Even the administrative departments are no exception. The market size is limited first. gone."

"What's more, in these markets, those who have computers are administrative departments, banks, schools, hospitals and other places. Few enterprises use computers, and even fewer have demand for office software."

"The most important thing is that many institutions that use computers have confidentiality requirements for their computers, and we are a foreign office software company, and the security will be questioned, so we need to spend more time on public relations, and at the same time Profits will also be affected to some extent.”

"It is precisely because of these reasons that the company's international market development has not been very smooth. It has only made small progress in half a year. If you want to achieve greater results, you have to spend time and slowly advance."

Isabella heard the words and made a more detailed report.

Lin Baicheng reminded: "We must pay close attention to the development of the international market. This is not only related to the company's profit growth, but also related to the company's office software market share. It is true that we have no competitors in this market, but this does not mean that There will be no competitors in the future, and we must occupy as many markets as possible before competitors appear.”

"Chairman, don't worry, while we are exploring the international market, the domestic market has not fallen behind. The company's goal this year is to win 80% of the country's public unit market. Judging from the current situation, this year can achieve this goal."

Isabella said that office software can only be used for one or two years after purchase, so as long as New Century Software's office software occupies the public sector market, it will be difficult for newcomers to challenge New Century Software's position .

Of course, even in the United States, there are still many institutions and units that do not use computers for office work. When computers become more popular, they will use computers. If the market is occupied, it is not impossible for challengers to defeat New Century Software.

"Chairman, Mr. Smith is here."

While talking, Qin Lan knocked on the office door.

"Sherland, you go to work first."

Upon hearing this, Lin Baicheng spoke to Edwin Sherland, and then went out to call Phil Smith to come in.

Not long after Phil Smith came, Wade Thomas and Deren Lawrence also came.This time, the three of them came alone, without any secretaries or assistants.

Everyone was talking in Lin Baicheng's office.

"Three, this is a report on the company's revenue, profit and business details since its establishment. Please take a look at it first."

Isabella handed the three photocopied documents to Wade Thomas, Phil Smith, and Deren Lawrence.

The three browsed through the documents first, and Lin Baicheng and Isabella did not disturb them.

The three of them didn't read very carefully. They mainly looked at key data such as revenue and profit, and roughly browsed the others.They didn’t come here today to discuss financing immediately. If they really decide to participate in financing, they will definitely send someone to conduct due diligence on New Century Software. At that time, they will look at the information they have investigated themselves very carefully.

Therefore, it didn't take long for the three of them to finish reading the information.

Seeing this, Lin Baicheng said: "Whether the company's specific situation is as written in the document can be confirmed after you send people to make a thorough investigation. Therefore, now you can assume that there is no problem with the information, and consider whether to participate in the New Century Financing for software companies. If you decide to participate in financing, you can send someone to the company to make due diligence recently, and Isabella will cooperate with you."

"As for the financing ratio and the high price-earnings ratio for financing, let's not talk about it for now. After you have done your due diligence and confirmed that there is no problem with the company's information, and you have a clearer understanding of New Century Software, we will talk about it later. .”

"Now if you have any questions, just ask, and Isabella and I will answer your doubts."

"Alan, as you said, we will discuss this report as if it is true for the time being."

Wade Thomas said something first, and then said: "I just checked and found that since February this year, the company has increased overseas income, but as of June, the proportion of overseas income is still not much. I think Do you know if the company's product office software is blocked in overseas markets?"

"The company is currently focusing on the domestic market, and the overseas market is only temporarily developed by a few employees. The company has not put much effort. However, from the second half of the year, the company will increase its efforts to develop overseas markets and increase the company's revenue. "

Isabella answered aloud, of course she would not say that the development of overseas markets is difficult, as that would only reduce the company's development potential.

Deren Lawrence asked aloud: "Have you ever calculated the prospects of overseas markets?"

Isabella nodded: "Yes, we believe that the potential of the overseas market will not be lower than that of the domestic market, and may even be several times that of the domestic market."

"When will the results appear in overseas markets?"

"There are many overseas countries, so we can only develop slowly, but after the company makes efforts in the second half of the year, I believe there will be results by the end of the year, and next year will be a bumper harvest season."

"Is the positioning of New Century Software Company to develop computer software? Does it not do other business?"

"Yes, the company is quite optimistic about the computer market, so it plans ahead of time and focuses on software research and development. Only by focusing can we achieve greater success."

"Related companies."

"..."

Wade Thomas and Derren Lawrence kept asking, and Isabella answered them one by one. Sometimes Lin Baicheng would answer one or two questions, but most of the time it was Isabella who answered for Wade Thomas and Deren Lawrence. Len Lawrence and the two answered.

As for Phil Smith, he was a spectator for a while. He didn't have too many problems. He believed in Lin Baicheng's ability and wanted to invest in this company.What's more, now that professionals from Goldman Sachs and Citigroup are asking, he doesn't need to ask more questions, just listen to it.

However, Wade Thomas and Deren Lawrence did not ask for too long, because some questions could not be asked until after they had conducted due diligence on New Century Software and had a more detailed understanding.

Wade Thomas said to Lin Baicheng: "Alan, for now, I am personally very interested in New Century Software. I will report the financing to the board of directors and promote the financing. Once Goldman Sachs decides to participate in the financing, I will send someone to come The New Century Software Company will conduct a more detailed due diligence, and the specific financing matters will be discussed after the results of the due diligence come out.”

"Alan, it's the same on my side." Deren Lawrence also said.

Lin Baicheng nodded: "Isabella will cooperate with your people to do the due diligence work."

Phil Smith said: "Alan, I will also send someone over to make due diligence. As long as there is no problem with the revenue and profit in this report, I will participate in the financing. I hope you can give me a little more financing share."

"I'll do my best, Smith."

Lin Baicheng wanted to find a strong partner for the New Century Software Company. In his opinion, Phil Smith's energy was too weak compared with Goldman Sachs and other institutions, so it was impossible for him to let Phil Smith get too many shares. That's a waste of resources.

Let Phil Smith participate in the financing, it is for the sake of friendship.

(End of this chapter)