Yanzi Valley of Jingcheng

Chapter 286
"Because Lotte is large enough and the data capacity can meet your needs." Xiao Jie said, "Companies that are slightly larger than it in the market have a price-earnings ratio of 140, while it is only over 20. The difference between the two is almost 7 times, even if Lotte is valued according to the market-to-sales ratio commonly used in the industry, the price-to-sales ratio of other rental websites is 7, and Lotte is 4.9, which is an underestimation.”

Xiao Jie told Guan Sha that Jin Quan had conducted a detailed due diligence on Letian Rent a House.

"Lakuten has strong control over both intermediary agencies and rental groups." Xiao Jie said, "For example, it has done a good job in terms of the authenticity of housing listings. There are fewer complaints."

"What type of complaint?" Guan Sha was curious.

"Such as malicious deduction of security deposits, fake listings, or fake intermediary information, etc. In short, the number of complaints in this Lotte is only equivalent to one-third of the peers."

……

"Lotte has strong control over both ends because he has an ACN cooperation network." Jiang Yifan said to Xiao Jie.

ACN cooperation network (Agent Cooperate Network, broker cooperation network), refers to the premise of complying with the rules such as full sharing of housing information, the same brand or cross-brand agents participate in a transaction with different roles, and the transaction is completed. A cooperation model in which the commission is divided according to the commission ratio of each role is the first landing mode of the symbiosis economy in the field of residential services.

The core of the ACN cooperation network is to refine the entire service chain, and then distribute commissions according to the contribution rate of brokers in each link.

For example, in a single transaction, there are "property input person", "property maintenance person", "entrusted spare parts person", "property key person", "property survey person", "customer referral" and Brokers in the cooperation network can obtain the final income through the contribution of any link in the role of "customer source dealmaker".

There is no doubt that the birth of ACN has improved the efficiency of broker cooperation, sharing internal information including housing information, transaction information, housing prices, activity volume, and the dynamics of each owner with the outside world, so that buyers and sellers can share transparent data After comparing, make a decision.

"ACN is similar to the MLS in the United States, which is the Multi Listing System." Jiang Yifan said to Xiao Jie, "There is a real estate intermediary platform company in the United States called Zillow. 254.99%."

"En." Xiao Jie nodded, "Aside from ACN, does Lotte have any other advantages over CDH's Aisin?"

“94% of Aisin’s income is from online marketing services, and the commission income from transaction services is only 6%. Unlike Rakuten, its revenue is basically composed of commissions from new houses, second-hand houses and other transactions. "Jiang Yifan replied.

"So Aisin is supported by the advertising business?" Xiao Jie asked.

"That's right, Mr. Xiao." Jiang Yifan said, "Currently, relying purely on advertising to support a long-term open platform for real estate brokers has not been passed in developed countries, so Aisin's business logic needs to be proven in the future."

"Continue talking." Xiao Jie said.

"Judging from the publicly disclosed prospectus, Aisin's related transactions are also much larger than those of Rakuten. In 2020, it will have technical service fees with many related parties."

……

If it was Guan Sha before, she would not understand the conversation between Jiang Yifan and Xiao Jie at all, but Guan Sha has already picked up the knowledge returned to school since she started a business. Books on the capital market, so Guan Sha understands what it means to have a large related party transaction.

The advantage of related party transactions is that it can save a lot of transaction costs in business negotiations and other aspects. At the group level, administrative power can be used to ensure the priority execution of commercial contracts, thereby improving transaction efficiency.

The disadvantages of related party transactions are also obvious.

Since the parties to related transactions can use administrative power to match the transaction, it is possible that the price and method of the transaction will appear unfair under non-competitive conditions, resulting in an infringement of the rights and interests of shareholders or some shareholders, and may also easily lead to the loss of creditors’ interests. got damage.

All in all, from the perspective of investors, if a company has a large proportion of related party transactions, it will be a big deduction item for the valuation.

Therefore, the business model of Lian Tianhai's Aisin Rental Housing Network is doubtful, and the proportion of related transactions is relatively large, so it is naturally impossible to become Xiao Jie's first choice for mergers and acquisitions.

……

Sitting on the mountain, Xiao Jie was blowing the evening warm air, and told Guan Sha very relaxedly, "With the current valuation of Lotte, we want to buy more shares and spend a lot of money. I told the investment committee about this plan at the very beginning. gone."

"Ah?" Guan Sha didn't react immediately.

"It was the investment committee that raised 400 million yuan for you at the beginning. In the end, I said that only when you lose money and invest in the right projects can you avoid the fund from being liquidated. Generally, the period of equity investment funds is 4 to 6 years. 3 Years are indeed too short."

Guan Sha couldn't believe it when she heard it. If what Xiao Jie said was true, how long ago did he know that Yanzigu Apartment would come to where it is today?

From the initial financing of 400 million yuan, Ye Taodu's entry, to the acquisition of Lotte Rent a House, is it Xiao Jie's step-by-step calculation?
"so……"

"So I did know the purpose of Ye Taodu's coming in." Xiao Jie interrupted Guan Sha, "They helped us, so we should help them back, right? In the end it really didn't work. I'll buy their part."

"Then it was your plan to bring in my dad's idle real estate?" Guan Sha asked Xiao Jie.

"Yes, as soon as the three red lines come out, there may be some problems in your family. This is one of the plans. Sometimes my phone with your dad will not only talk about the fund and you, but also some business of your Guanhong Real Estate. "Xiao Jie said, "The plan is good, but it is not easy to implement. The amount of funds needed is larger than I originally expected. Besides, Hu Hai and the others need money at the same time. I also need money... I have been thinking of a solution..."

Xiao Jie patted Guan Sha's head at this point, "Du Jing really helped a lot this time... It was beyond my expectation. I sincerely hope that you can remain good friends forever."

Guan Sha suddenly looked at Xiao Jie meaningfully after hearing the words, "Do you know that she likes you?"

"I know." Xiao Jie answered quickly and simply.

"You actually know..." Guan Sha blinked, "Okay, so you have always known..."

"Do you want me to tell you that I don't like her, only you?"

Guan Sha, who was directly guessed by Xiao Jie, immediately jumped up and grabbed Xiao Jie's ear, "You're so annoying! You don't want to talk!"

"Don't make trouble..." Xiao Jie said.

"It's going to make trouble! Look at me and punish you if I go back!"

"I'll show you something." Xiao Jie said.

Guan Sha didn't know what Xiao Jie was going to show her, but when she actually saw what Xiao Jie took out from his pocket, she covered her mouth with her hands and took two steps back in disbelief...

(End of this chapter)