plagiarism

Plagiarism - 140 Leveraged Buyout Scheme

Sure enough, Peric understood the principle of leveraged buyouts, and he said ecstatically, "Tan, what kind of brains are you? You can't even think of such a way. Haha, I'm really convinced." is you!"

Tan Xiaozhong said: "Xiaobao, in fact, the total market value of Bristol Meyers is only 39 billion. If we buy it, if its stock price rises by 30%, it will be 50 billion at most. And we It is not necessary to acquire all the shares, only 51% of the shares is enough to control the company. So we really need a loan of 25 billion, and the company itself still has so much cash, which can be used as working capital in the future .So a loan of 25 billion should be enough.”

"If you don't do it, do it cleanly and thoroughly, and don't leave the enemy a chance! I want to privatize this company, so as not to have long nights and dreams." Tan Jiabao knew that Tan Xiaozhong's head was turning the fastest, but at this time he still I don't want to make the whole process too clear for everyone.He believes that knowing too much is not conducive to the next work.Especially Peric's work.So he shook his head and said resolutely: "Beating a snake will not kill you. I will beat him down with a stick until he can't move!"

Tan Xiaozhong asked: "But will the major shareholders sell their stocks? What if they don't?"

Tan Jiabao said with a smile: "This starts with the share capital structure of this company. This company was founded in 1887 by William * m * Bristol and John * r * Meyers in Clinton, New York State The Clinton Pharmaceutical Company, which was renamed Bristol Meyers Company in 1898, was listed in New York in 19. This company was established by two people. After decades of ups and downs, the two Individuals have formed their own families, so the company's equity has become more and more dispersed. By this generation, the largest shareholder, Mr. Bristol, held only 16% of the shares, while the second largest shareholder, Mr. Meyers, held 13% of the shares. 70% of the company’s shares, and nearly [-]% of the company’s shares have become tradable shares. Haha, this is the case for many companies in the United States, and the same is true for Disney. So we can acquire them without much effort. A lot of tradable shares became the largest shareholder. Think about it, when we became the largest shareholder and separated cosmetics and personal care products to Danbis, the original largest shareholder and the original second largest shareholder saw Will they stay with a company that is heavily indebted and the industry they thought was the most profitable no longer belongs to the company?"

Although Tan Xiaozhong still had doubts, seeing Tan Jiabao's wink, he finally nodded: "Well, no one will have trouble with money."

Tan Jiabao said thoughtfully: "After getting rid of these original shareholders, we can re-apply for listing if there is a problem with funding after we release new drugs and new medical devices within two to three years. In that case, we may be able to raise enough funds with 30% of the shares, so that we can continue to acquire pharmaceutical companies and continue to develop and strengthen ourselves.”

Tan Jiabao cast his eyes on Peric and said: "The most important thing now is capital, and the key person in all this is you, my dear Mr. Peric! If we want to turn defeat into victory and use this to make our respective companies fly If you go to the sky, Mr. Perici, you have to sharpen your head and try to get the money by all means."

Peric was using a pen to draw back and forth on a piece of paper.A few minutes later, a big smile appeared on his face.He said: "Five billion US dollars seems to be a huge amount. Although it is very tricky, but after my thinking and calculations, I can answer you now, no problem! I have a way to get the funds!"

Tan Jiabao smiled secretly.This is what he wanted.He knew that Peric must not have clearly understood the truth, but he spoke so full of excitement. 50 billion, difficult!It would have been nice to get halfway there, but Peric has to give it his all now.Tan Jiabao's heart is like a mirror.

Peter Lynch and the others also understood the truth at this time.Zhang Zhiren asked blankly: "Boss, is this the so-called empty glove white wolf? You said that this kind of leveraged buyout will be very popular in the future. I am worried that in the end of this game, it will be the enterprises and the banks that will suffer."

Tan Jiabao nodded and said: "You can think of this level is already very good. But we are sincerely running a business, and the company should be acquired by us. It should be the luck of this company. I am very confident that I will turn this company into a Tang After Chao Pharmaceutical Company, Tang Dynasty Pharmaceutical will definitely stand at the top of the industry! After this time, there will definitely be some people with ulterior motives to make a fortune. In fact, leveraged buyouts can also be carried out in two ways: bond financing and bank loans Those who come to buy, will suffer at that time as well as the holders of these junk bonds.”

It occurred to Tam that leveraged buyouts were perhaps one of the most compelling success stories of the 80s.One of the widely publicized events was the gigantic profit from the gibson greeting card deal.The company was first taken private in 1982 and relisted a year and a half later as a publicly held company again.The management team led by wesray capital purchased gibson from rca for $1982 million in 8,000, actually using only $100 million of its own funds.The company went public again 18 months later at a price of $2.9 million, probably thanks to the bull market that began in 1982, though the company itself has not changed significantly. A Wesray principal, former treasury secretary William Simon, received $33 million worth of cash and stock for his $6,600 investment.And this Gibson greeting card company is the company that bought Tan Jiabao's music greeting cards earlier.

The huge gains on the investment made the leveraged buyout the most profitable investment idea of ​​the 80s, and it attracted a wide range of participants, including banks, insurance companies, Wall Street firms, pension funds and individuals with deep pockets.From 1981 to 1989, there were 1,400 "going private" transactions.Before the first big deal, the co-deal, traditional leveraged buyouts were small.The deal took place in 1984 and was worth more than $10 billion.Since then, the leveraged buyout market has experienced explosive growth, and the total size of the leveraged buyout market has risen rapidly. The transaction volume completed in 1983 was 45 billion US dollars, and the completed transaction volume rose to 1989 billion US dollars in 766. The largest leveraged buyout deal completed between 1983 and 1987 totaled $765 billion.Decades later, the bubble grew bigger and bigger. In the end, the consequences of this leveraged buyout were one of the main reasons for the subsequent global financial crisis, which troubled economic officials and economists in many countries.

Peric said with a smile: "Now we should talk about the distribution of benefits between Dan Bisi and your Tang Dynasty company. As you said, the company's cosmetics and personal care products business is assigned to Dan Bisi, and this The sales revenue of the business accounts for 17% of the total revenue, and the profit accounts for 31%, so how much loan and interest will Dan Bisi allocate?"

Tan Jiabao thought that both Dan Bisi and Tang Chao Pharmaceutical were his shareholding companies, and he didn't care much about this kind of distribution, so he said, "You can do whatever you want."

Peric laughed and said, "Haha, that's refreshing! How about just like this, Dan Bisi accounts for 25% of the entire loan, which is a quarter. Out of the 50 billion, Dan Bisi holds 12.5 billion US dollars."

Tan Jiabao smiled and said, "Yes, I completely agree with this distribution plan!"

Peric said with a chuckle: "Tan, let's sign the contract right away. You know, I'm impatient, and I can't wait..."