America's Road to Wealth

Chapter 41 New Goals

There is always an end to the party.

The end of the song,

At around ten o'clock in the evening, Barron Hilton, the host of the banquet, left the venue voluntarily.

As soon as he left, he announced the end of the banquet.

As early as [-]:[-] to [-]:[-], people left the venue one after another.

Few people are present at a banquet or party from beginning to end.

If there is, it is either asking for something, or simply being the host of the banquet.

Like Abel and David Mellon, they didn't stay until ten o'clock.

The two left the golden hall on the top floor of the Hilton Hotel in Midtown just as the clock reached nine o'clock.

After the two of them left, several Wall Street giants also left one after another.

Downstairs, on the street.

Driver Andy drove a black Cadillac sedan.

This is a fifth-generation Cadillac STS.

STS is Cadillac's flagship product.

It has a rough and unrestrained appearance, subverting the previous classic luxury and showing a flamboyant personality.

It is the wildest Cadillac flagship ever.

Don't look at Cadillac overseas, it has been doing poorly.

In the federal territory, it has a different status from Lincoln in the car industry.

Let's put it this way, the status of Lincoln and Cadillac in the United States.

It is equivalent to Hongqi, which has the same status in the car industry of China.

American Old Money with a little sentimentality, most of them like Cadillac or Lincoln.

David was with Abel, and he went to his car and brought some papers.

Then he got into the car with Abel. In the rear compartment, David handed the documents to Abel.

"Here, here is the information you want." David said.

"What you want, its ownership structure is very clear. The parent company L Brands holds 91% of the shares, and Wexner personally holds 9% of the shares."

"This is a company that is close to a private company. Goldman Sachs, Merrill Lynch and MG have similar evaluations on its latest valuation, which is about $3 million."

While listening to David's introduction, Abel nodded slightly, flipping through the information in his hand.

"Why are you suddenly interested in an underwear company?"

"Don't tell me, is there any wealth secret that I can't see?"

David Mellon said.

Abel lazily said without raising his eyes:
"It can indeed be regarded as a wealth secret.

If I told you that this is a unicorn with an annualized rate of return of more than 100% in the next ten years, what would you think? "

"At all costs, take it down! If you can't take it down, find a way to stop or destroy it!"

David was startled, and then asked in confusion, "You're not talking about Victoria's Secret, are you? How can an underwear company achieve such a high annualized rate of return?"

"Bingo, you're right.

Victoria's Secret is one such company.

I am very optimistic about its future development.

Within ten years, it can at least give us ten times the return. said Abel with a smile.

David was relieved, "No wonder you let me collect its information.

I thought you were interested in the models it owned or hired. "

Abel smiled and said, "You're right. I'm really interested."

David rolled his eyes, and then said:
"If you want to acquire it, it will be a little difficult.

L Brands has a good financial situation, and Victoria's Secret has also done well in recent years.

Wexner wouldn't want to sell. "

"Didn't you just say that it has a market value of $3 million?"

Abel said, "Then I'll bid $[-] million, with a cap of $[-] million.

Double the price, do you think Wexner would want to sell it? "

"The market value of L Brands is less than 20 billion. If a Victoria's Secret can sell for [-] million, I think he will be very happy."

"But." David Mellon said hesitantly, "the premium is too high."

"Before you say a premium, think about its value going forward.

Trust my judgment, David.

It won't be that long, as soon as next year, and you'll know the investment is worth it. "

"Okay." David Mellon shrugged, "You are the boss, you have the final say."

For Victoria's Secret this lingerie company.

The reason why Abel is willing to pay a premium for so many acquisitions is of course partly because of the supermodels who are about to debut in the age of the gods.

But just like what he said to David Mellon, Victoria's Secret will really hit the sky next.

In just a few years, the valuation has risen from hundreds of millions of dollars to billions of dollars.

When it was listed, its valuation once reached 90 billion US dollars.

At its peak, there were more than 1000 stores in the United States and more than 2000 stores around the world.

The sales at the peak period even accounted for 40.00% of the national underwear sales.

It can be said that in those few years, Victoria's Secret was the world's number one underwear giant.

This is mainly because its marketing is very good, which creates a feeling of "I'm expensive and I'm very expensive".

As a result, I went to the store and saw that it was not expensive at all.

An average piece of underwear costs $30-40.

The high-end ones are a little more expensive, and the same style worn by those supermodels is only about 70-90 dollars a piece.

It is the creation of this sense of gap, as well as a good aesthetic.

Let Victoria's Secret, with the help of crazy marketing capabilities, become a sensational underwear brand in the world in a short period of time.

And it all started at the Victoria's Secret show at the end of this year.

Then at the Victoria's Secret show at the end of next year, it will go straight to the top.

Started Victoria's Secret, the glorious course of the next ten years.

Before this year or next year, pay a little more and get Victoria's Secret.

Then don't worry about anything, just let it follow the marketing path of the previous life.

It can make it go to the glory of the previous life.

The return on valuation alone is an investment with more than ten times the return.

Most importantly, as the parent company of Victoria's Secret, L Brands is really not short of money.

Want Lex Wexner to sell Victoria's Secret.

It is impossible to succeed without offering a price that is enough to tempt him.

In the hands of Smith Capital, there is nothing that can make L Brands feel excited.

If you want to win, the only way is to throw money directly.

It is probably the best way to drop ten meetings with one force.

Abel is not good at negotiating in this area.

Fortunately, he has talents who are good at this, so just leave it to David to do it.

The two skipped the topic, and then talked about the banquet tonight.

"Obviously, they are very happy." David commented on the performance of several Wall Street giants tonight.

"I believe that in a few days, or even tomorrow, someone will come to the company."

"Is that how you like me?" Abel said with a smile.

"Of course. If you allow me, I would like to take out my own money and invest it in the company." David said seriously.

Abel knew what he meant.

Because next, Smith Capital will start the first private placement.

The goal of the private placement is US$20 billion for a period of half a year.

What David said was that he wanted a share of the $20 billion in funds.

"Yes." Abel said bluntly: "But it must be your funds. Or your family's funds. It cannot be other funds under your name. You know the rules, my friend."

"Understood." David said, "Of course I understand the rules!!"

"That's it." Abel smiled.

"That's right." Seriously, the business affairs are over.

David Mellon, would like to talk a little less serious.

He winked and said: "That D. Ikana Lerner, I feel that you seem to be interested in her!!"

"Ikana is really good, but you have to pay attention. Her father is a difficult guy."

(End of this chapter)