I have a thousand suites in Shenzhen
Chapter 162: Valuation of US$5 million
Chapter 162: Valuation of US$[-] million (please vote for me)
Niu Qiangdong immediately remembered Chen Xuejiao, who had come to his door to invest in his company. Although the investment company had gone bankrupt, his company still needed funds to survive.
But Niu Qiangdong immediately found Chen Xuejiao's business card on his body and called the contact number on the business card with his mobile phone.
"Mr. Niu! Did you successfully sign the contract so soon?" Chen Xuejiao seemed to have expected it, and said with a smile in her tone.
"Ms. Chen, it's not what you expected. The other party regretted it and wanted to lower the valuation of Qiangdong Company. I would like to know what your company's valuation of Qiangdong Company is?" Niu Qiangdong asked directly.
"I know that when Mr. Niu wanted to sign the contract just now, the valuation given by the other party was US$4500 million, that's right, but the other party just wanted to lower the valuation to US$3000 million." Chen Xuejiao said easily and casually.
"How did you know? Such detailed information, before it is officially announced to the outside world, and before there is a formal signing, this matter is absolutely confidential." Niu Qiangdong asked in shock.
I thought again, could it be that the investment company deliberately spread the news?The purpose is not to hope that other companies will invest, or that the valuation at the time of investment will not be higher than theirs.
You must know that once this news spreads, even if there are other investment companies that are interested in Qiangdong Company and want to invest in Qiangdong Company, the valuation given will not be too high, and it will definitely not exceed US$4500 million.
The valuation of US$4500 million was only a choice that Niu Qiangdong had to make as a last resort.
"As for how I know this information, it is not convenient for me to reveal it to Mr. Niu. The boss of our company admires Mr. Niu very much. He knows how difficult it is for Mr. Niu to start a business, and he also knows that Mr. Niu is a responsible person. A good boss who is responsible and trustworthy, so we value Qiangdong Company at least US$5000 million," Chen Xuejiao said on the phone.
"This valuation is only the lowest level. Our valuation of Qiangdong Company depends on how much Mr. Liu needs us to invest and how many shares he will transfer to us."
“The more investments required in the five requirements, the better. The more shares we transfer, the higher our valuation of Qiangdong Company will be.”
"If we transfer 5000% of the shares, our valuation of Qiangdong Company will be only US$20.00 million. If we transfer 7500% of the shares, our valuation of Qiangdong Company will be US$20.00 million. If we transfer [-]% of the shares, our valuation of Qiangdong Company will be approximately US$[-] million." For shares, the valuation can be raised to US$[-] million.”
"By selling 30.00% of the shares, we can directly adjust the valuation to [-] million U.S. dollars. If it's more, forget it. I estimate that Mr. Liu won't be willing to sell too many shares. It's useless to say more."
The more Niu Qiangdong listened, the more excited he became. With such good investment conditions, why should there be any hesitation?
Even if only 20.00% of the shares are sold, the valuation has risen to US$7500 million. Although it is still far behind my initial valuation of US$4500 million, it is still higher than the US$[-] million valuation I was planning to sign before. , a lot more.
If 30.00% of the shares are sold, the valuation will instantly increase to 6000 million U.S. dollars, and the company can get [-] million U.S. dollars of investment, which is enough to ensure that the company can successfully go through this cold winter and further accelerate the company's development speed. .
Although Niu Qiangdong's initial plan was to sell at most 20.00% of his shares for financing.
But who could have imagined that the situation would change so quickly?
If only 20.00% of the shares are sold, the valuation is still US$7500 million, and the company can also get US$1500 million in funds. Of course, it is enough to extend its life, but the company's development speed will definitely be slowed down.
And now that the financial crisis is getting worse, no one knows when it will end!
If the economy cannot recover in a short period of time, it will be even more difficult to refinance after spending all the $1500 million.
The safest way is to sell 30.00% of the company's shares and obtain the US$6000 million in development funds. Then the company can survive at least two years of winter, or even longer, without the risk of bankruptcy. .
The two parties hit it off immediately, so of course they agreed on a time as soon as possible and negotiated in detail.
Chen Xuejiao was even very generous, giving the other party 300 million US dollars in advance to extend the life of the company.
By the time of the formal negotiations, Niu Qiangdong had learned more about the Hong Kong Hualong Investment Company.
He finally found out that Hong Kong Hualong Investment Company was the only investor in Anjing Online Supermarket and the largest investor in Huaxing Technology Company.
Although Jingjing Online Supermarket started late and was only launched in 2006, its development speed is very fast and amazing.
It took three months to cover the entire Shenzhen City. Then, like a shot of chicken blood, it only took the same three months to cover the large and medium-sized cities with the most developed economy and population in Guangdong Province.
After that, it was launched in major cities across the country and blossomed everywhere. The reason why Jingjing Online Supermarket is developing so fast is the funds behind it. It seems that there is no need to worry about funds.
Although my own Qiangdong Company was established earlier, it did not develop quickly. All the previous development funds were raised by myself, so I could only move forward step by step, and I couldn't go faster even if I wanted to.
Without the support of external funds, it is completely dependent on the company's profits. The money earned by the company is used for the development of the company. At the beginning, Niu Qiangdong didn't know anything about venture capital and financing.
Niu Qiangdong also wanted to speed up the company's development, but his first thought was to borrow money, find a bank loan, and mortgage the company to the bank.
But banks don't want to lend money to Qiangdong Company. The risk for this kind of Internet start-up company is really too great. Banks don't want to take this risk anyway.Wouldn't it be better to invest the money invested in Qiangdong Company in real estate development?
In fact, it doesn't matter whether you take risks or not. The key is that the bank leaders who lend money can get generous returns from developers when they lend money to real estate developers.
It is said that some developers will do anything to get loans!Not only are they provided with delicious food, drinks and fun, some developers have loaned out a large amount of development funds and are willing to give the bank leaders who handle the work a [-]% return.
Lending money to Internet startups like Qiangdong Company is not only risky, but also bank leaders will not get any benefits. Naturally, there will be no banks willing to lend money to these companies.
Before the formal negotiation, Niu Qiangdong asked Chen Xuejiao: "According to my understanding, although Anjing Online Supermarket has some small shareholders, it is actually a company independently invested by your company, including Huaxing Technology Company."
"Mr. Niu! Is there any problem with this?" Chen Xuejiao nodded and asked.
There is actually nothing to hide about this. Anyone who is interested can easily find this information if they want to.
"It stands to reason that when Qiangdong becomes stronger in the future, the biggest competitor besides Taobao will be Anjing Online Supermarket, and Anjing Online Supermarket will bear the brunt because the business models of our two companies are almost the same. , adopts a self-operated development method and builds its own logistics system." Niu Qiangdong continued.
"Your company's investment in our Qiangdong Company to make our company bigger and stronger is equivalent to giving your Quiet Online Supermarket a strong enemy. Aren't you worried that when our Qiangdong Company becomes bigger, it will overtake Anjing Online Supermarket and harm your company?" The benefits may even defeat your quiet online supermarket.”
"There is nothing to worry about. Our boss's structure is not that small. Even if there is no Qiangdong Company, there will be other companies coming in to compete. Even if our two companies eventually need to compete, shouldn't they develop first and then come back?" Consider this issue." Chen Xuejiao said with a smile.
"And! Before we compete with each other, the most powerful competitor we should face together is not our each other's companies, but Taobao."
"Companies need to compete with each other to develop together, and the market is also created. As the number of Internet users continues to grow, the market will become bigger and bigger."
"Our company is very optimistic about the future development of the Internet economy, so we have not only invested in Jingjing Online Supermarket, but also your Qiangdong Company, which is about to invest. If given the opportunity, we will not only invest in more Internet startups, even Taobao Insurance company, if there is an opportunity, we are also willing to invest in it.”
"If Anjing Online Supermarket is eliminated from the market because it cannot compete with its competitors, goes bankrupt, or is acquired by a competitor, this is also a normal market behavior."
"If Mr. Niu has this ability, he can make Qiangdong Company bigger and stronger, overtake Anjing Online Supermarket, and finally acquire Anjing Online Supermarket. I believe our boss will also be very happy and will not feel that There’s something wrong with what you’re doing.”
"Not only are we optimistic about the future development of the Internet economy, but many people are also optimistic about the future development of the Internet economy. Therefore, there will only be more and more Internet startups in the future, and competition will become increasingly fierce."
"Some Internet startups will become bigger and stronger, and it won't take long for more Internet startups to be able to survive and have no choice but to close down."
"So you invest in our Qiangdong Company. Our Qiangdong Company is just one of the many Internet startups you have invested in. No matter whether we succeed or fail in the end, your company will not actually take it to heart. Frankly, Accept it." Niu Qiangdong asked again.
"You can understand this, but our boss still thinks highly of you. If possible, he even hopes to directly acquire your Qiangdong Company and merge Qiangdong Company with Anjing Online Supermarket, with you as the two CEO after the merger of the company." Chen Xuejiao explained.
"But our boss also said that you probably won't agree."
"But now the scale of Anjing Online Supermarket is much larger than that of your Qiangdong Company. It is unrealistic for Qiangdong Company to acquire Anjing Online Supermarket. The employees of Anjing Online Supermarket will definitely not be convinced."
"So the boss is looking forward to Mr. Niu's performance. I hope you can make Renqiangdong Company bigger and stronger as soon as possible and complete the acquisition of Anjing Online Supermarket."
"Mr. Niu, do you have any other questions?"
Niu Qiangdong tried his best to stabilize his mood and said: "Thank you, the boss of your company, for looking at me differently. I will work hard to at least get the most generous return on his investment."
"But I have a question that I am curious about. If I am willing to sell 40.00% of my shares, how much will your company's valuation of our company be increased to?"
"40.00%! Are you sure?" Chen Xuejiao asked a little doubtfully.
"I'm just curious and want to ask." Niu Qiangdong said with a smile.
"Five billion US dollars!" Chen Xuejiao said after being silent for a while.
……
Starting today, I want to do it every day. Can you give me some support?
(End of this chapter)
Niu Qiangdong immediately remembered Chen Xuejiao, who had come to his door to invest in his company. Although the investment company had gone bankrupt, his company still needed funds to survive.
But Niu Qiangdong immediately found Chen Xuejiao's business card on his body and called the contact number on the business card with his mobile phone.
"Mr. Niu! Did you successfully sign the contract so soon?" Chen Xuejiao seemed to have expected it, and said with a smile in her tone.
"Ms. Chen, it's not what you expected. The other party regretted it and wanted to lower the valuation of Qiangdong Company. I would like to know what your company's valuation of Qiangdong Company is?" Niu Qiangdong asked directly.
"I know that when Mr. Niu wanted to sign the contract just now, the valuation given by the other party was US$4500 million, that's right, but the other party just wanted to lower the valuation to US$3000 million." Chen Xuejiao said easily and casually.
"How did you know? Such detailed information, before it is officially announced to the outside world, and before there is a formal signing, this matter is absolutely confidential." Niu Qiangdong asked in shock.
I thought again, could it be that the investment company deliberately spread the news?The purpose is not to hope that other companies will invest, or that the valuation at the time of investment will not be higher than theirs.
You must know that once this news spreads, even if there are other investment companies that are interested in Qiangdong Company and want to invest in Qiangdong Company, the valuation given will not be too high, and it will definitely not exceed US$4500 million.
The valuation of US$4500 million was only a choice that Niu Qiangdong had to make as a last resort.
"As for how I know this information, it is not convenient for me to reveal it to Mr. Niu. The boss of our company admires Mr. Niu very much. He knows how difficult it is for Mr. Niu to start a business, and he also knows that Mr. Niu is a responsible person. A good boss who is responsible and trustworthy, so we value Qiangdong Company at least US$5000 million," Chen Xuejiao said on the phone.
"This valuation is only the lowest level. Our valuation of Qiangdong Company depends on how much Mr. Liu needs us to invest and how many shares he will transfer to us."
“The more investments required in the five requirements, the better. The more shares we transfer, the higher our valuation of Qiangdong Company will be.”
"If we transfer 5000% of the shares, our valuation of Qiangdong Company will be only US$20.00 million. If we transfer 7500% of the shares, our valuation of Qiangdong Company will be US$20.00 million. If we transfer [-]% of the shares, our valuation of Qiangdong Company will be approximately US$[-] million." For shares, the valuation can be raised to US$[-] million.”
"By selling 30.00% of the shares, we can directly adjust the valuation to [-] million U.S. dollars. If it's more, forget it. I estimate that Mr. Liu won't be willing to sell too many shares. It's useless to say more."
The more Niu Qiangdong listened, the more excited he became. With such good investment conditions, why should there be any hesitation?
Even if only 20.00% of the shares are sold, the valuation has risen to US$7500 million. Although it is still far behind my initial valuation of US$4500 million, it is still higher than the US$[-] million valuation I was planning to sign before. , a lot more.
If 30.00% of the shares are sold, the valuation will instantly increase to 6000 million U.S. dollars, and the company can get [-] million U.S. dollars of investment, which is enough to ensure that the company can successfully go through this cold winter and further accelerate the company's development speed. .
Although Niu Qiangdong's initial plan was to sell at most 20.00% of his shares for financing.
But who could have imagined that the situation would change so quickly?
If only 20.00% of the shares are sold, the valuation is still US$7500 million, and the company can also get US$1500 million in funds. Of course, it is enough to extend its life, but the company's development speed will definitely be slowed down.
And now that the financial crisis is getting worse, no one knows when it will end!
If the economy cannot recover in a short period of time, it will be even more difficult to refinance after spending all the $1500 million.
The safest way is to sell 30.00% of the company's shares and obtain the US$6000 million in development funds. Then the company can survive at least two years of winter, or even longer, without the risk of bankruptcy. .
The two parties hit it off immediately, so of course they agreed on a time as soon as possible and negotiated in detail.
Chen Xuejiao was even very generous, giving the other party 300 million US dollars in advance to extend the life of the company.
By the time of the formal negotiations, Niu Qiangdong had learned more about the Hong Kong Hualong Investment Company.
He finally found out that Hong Kong Hualong Investment Company was the only investor in Anjing Online Supermarket and the largest investor in Huaxing Technology Company.
Although Jingjing Online Supermarket started late and was only launched in 2006, its development speed is very fast and amazing.
It took three months to cover the entire Shenzhen City. Then, like a shot of chicken blood, it only took the same three months to cover the large and medium-sized cities with the most developed economy and population in Guangdong Province.
After that, it was launched in major cities across the country and blossomed everywhere. The reason why Jingjing Online Supermarket is developing so fast is the funds behind it. It seems that there is no need to worry about funds.
Although my own Qiangdong Company was established earlier, it did not develop quickly. All the previous development funds were raised by myself, so I could only move forward step by step, and I couldn't go faster even if I wanted to.
Without the support of external funds, it is completely dependent on the company's profits. The money earned by the company is used for the development of the company. At the beginning, Niu Qiangdong didn't know anything about venture capital and financing.
Niu Qiangdong also wanted to speed up the company's development, but his first thought was to borrow money, find a bank loan, and mortgage the company to the bank.
But banks don't want to lend money to Qiangdong Company. The risk for this kind of Internet start-up company is really too great. Banks don't want to take this risk anyway.Wouldn't it be better to invest the money invested in Qiangdong Company in real estate development?
In fact, it doesn't matter whether you take risks or not. The key is that the bank leaders who lend money can get generous returns from developers when they lend money to real estate developers.
It is said that some developers will do anything to get loans!Not only are they provided with delicious food, drinks and fun, some developers have loaned out a large amount of development funds and are willing to give the bank leaders who handle the work a [-]% return.
Lending money to Internet startups like Qiangdong Company is not only risky, but also bank leaders will not get any benefits. Naturally, there will be no banks willing to lend money to these companies.
Before the formal negotiation, Niu Qiangdong asked Chen Xuejiao: "According to my understanding, although Anjing Online Supermarket has some small shareholders, it is actually a company independently invested by your company, including Huaxing Technology Company."
"Mr. Niu! Is there any problem with this?" Chen Xuejiao nodded and asked.
There is actually nothing to hide about this. Anyone who is interested can easily find this information if they want to.
"It stands to reason that when Qiangdong becomes stronger in the future, the biggest competitor besides Taobao will be Anjing Online Supermarket, and Anjing Online Supermarket will bear the brunt because the business models of our two companies are almost the same. , adopts a self-operated development method and builds its own logistics system." Niu Qiangdong continued.
"Your company's investment in our Qiangdong Company to make our company bigger and stronger is equivalent to giving your Quiet Online Supermarket a strong enemy. Aren't you worried that when our Qiangdong Company becomes bigger, it will overtake Anjing Online Supermarket and harm your company?" The benefits may even defeat your quiet online supermarket.”
"There is nothing to worry about. Our boss's structure is not that small. Even if there is no Qiangdong Company, there will be other companies coming in to compete. Even if our two companies eventually need to compete, shouldn't they develop first and then come back?" Consider this issue." Chen Xuejiao said with a smile.
"And! Before we compete with each other, the most powerful competitor we should face together is not our each other's companies, but Taobao."
"Companies need to compete with each other to develop together, and the market is also created. As the number of Internet users continues to grow, the market will become bigger and bigger."
"Our company is very optimistic about the future development of the Internet economy, so we have not only invested in Jingjing Online Supermarket, but also your Qiangdong Company, which is about to invest. If given the opportunity, we will not only invest in more Internet startups, even Taobao Insurance company, if there is an opportunity, we are also willing to invest in it.”
"If Anjing Online Supermarket is eliminated from the market because it cannot compete with its competitors, goes bankrupt, or is acquired by a competitor, this is also a normal market behavior."
"If Mr. Niu has this ability, he can make Qiangdong Company bigger and stronger, overtake Anjing Online Supermarket, and finally acquire Anjing Online Supermarket. I believe our boss will also be very happy and will not feel that There’s something wrong with what you’re doing.”
"Not only are we optimistic about the future development of the Internet economy, but many people are also optimistic about the future development of the Internet economy. Therefore, there will only be more and more Internet startups in the future, and competition will become increasingly fierce."
"Some Internet startups will become bigger and stronger, and it won't take long for more Internet startups to be able to survive and have no choice but to close down."
"So you invest in our Qiangdong Company. Our Qiangdong Company is just one of the many Internet startups you have invested in. No matter whether we succeed or fail in the end, your company will not actually take it to heart. Frankly, Accept it." Niu Qiangdong asked again.
"You can understand this, but our boss still thinks highly of you. If possible, he even hopes to directly acquire your Qiangdong Company and merge Qiangdong Company with Anjing Online Supermarket, with you as the two CEO after the merger of the company." Chen Xuejiao explained.
"But our boss also said that you probably won't agree."
"But now the scale of Anjing Online Supermarket is much larger than that of your Qiangdong Company. It is unrealistic for Qiangdong Company to acquire Anjing Online Supermarket. The employees of Anjing Online Supermarket will definitely not be convinced."
"So the boss is looking forward to Mr. Niu's performance. I hope you can make Renqiangdong Company bigger and stronger as soon as possible and complete the acquisition of Anjing Online Supermarket."
"Mr. Niu, do you have any other questions?"
Niu Qiangdong tried his best to stabilize his mood and said: "Thank you, the boss of your company, for looking at me differently. I will work hard to at least get the most generous return on his investment."
"But I have a question that I am curious about. If I am willing to sell 40.00% of my shares, how much will your company's valuation of our company be increased to?"
"40.00%! Are you sure?" Chen Xuejiao asked a little doubtfully.
"I'm just curious and want to ask." Niu Qiangdong said with a smile.
"Five billion US dollars!" Chen Xuejiao said after being silent for a while.
……
Starting today, I want to do it every day. Can you give me some support?
(End of this chapter)
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