Perfection of Rebirth

Chapter 498 Reorganization and Listing

How much is a business worth?This is a very specialized and complex issue.

Experienced investment banks like Goldman Sachs often have their own set of assessment tools.These assessment tools are often composed of many methods, and there is no way to say that one method is more accurate than another.

In actual operation, investment banks use a variety of valuation methods, and then take a rough range.Ordinary people may feel that it is intuitively reasonable for all valuation methods to lead to a common result, but the reality is that investment banks will give several independent and different valuation results.This is where the core work is.

Investment banks will consider the valuations obtained by different methods, and then qualitatively and subjectively give a relatively reasonable valuation range.For each valuation method, non-quantitative factors are taken into account and the valuation is adjusted accordingly.

This is also the reason why different investment banks sometimes give quite different results.

"Mr. Jiang, the current valuation algorithm is relatively complicated, because for this listing, we have integrated the shares of Meituan America, Daoguo and Tianchao into the newly registered Meituan Technology Co., Ltd."

In the early days of Meituan.com’s development, Tianchao Company had relatively many shareholders, while overseas companies were basically wholly-owned by Jiang Hui. Therefore, when integrating into a company, it is necessary to calculate the valuation of each company. Shares in the merged company.

Meituan currently has the most users in China, but the US branch is more popular with investors because it is mainly engaged in the North American market, while the island branch is oriented to the entire East Asian market, so in terms of valuation, the US branch has fewer users And the island branch will not be lower than the Tianchao company.

"In general, the final valuation given by Goldman Sachs is 45-55 billion US dollars, combined with the current number of issuance, the stock price is between 22-28 US dollars, depending on the performance of the subsequent roadshow," Tang Wenwen said in detail.

"It's not bad, so we can raise about one billion US dollars, which is enough for Meituan to further develop into a comprehensive platform."

A single group-buying website is too low in anti-risk capability. Jiang Hui hopes that Meituan.com can become a diversified business that focuses on group-buying, supplemented by shopping.

For example, the functions of shopping websites such as Later Life, Tiantian Orchard, etc., Jiang Hui felt that they could be integrated into Meituan.com.

Meituan itself focuses on food group buying. If it can sell seafood, fruits and other items online at the same time, there must be a market.Of course, the premise is that the express delivery must keep up, which is one of the reasons why Jiang Hui encouraged Jingxi to build its own logistics.

Sooner or later, Brilliant Investment will become the major shareholder of Jingxi. At that time, Meituan.com and others can also cooperate with Jingxi Logistics to achieve a win-win effect.

"To be honest, Mr. Jiang, I really haven't figured out how to spend more than a billion dollars."

"It's not easy to spend money? First, make the comments section of Meituan.com community-based and learn the model of Dianping; develop its own shopping platform and integrate online shopping functions into Meituan; and then develop a cooking module so that everyone can use The food processing process is shared above; at the same time, there are several food modules for pregnant women, children, etc.... " Jiang Hui gave a bunch of examples.

"This is not counting fixed asset investment. If the funds are rich, you can buy a piece of land to build a Meituan headquarters building, and then buy land to build warehouses across the country. There is still a way to spend another billion dollars," Jiang Hui said. .

"It seems that only those who can spend money will make money." Tang Wenwen was ashamed to see that the distribution of billions of dollars was planned by Jiang Hui in a blink of an eye.

In fact, in Jiang Hui's view, being able to spend money has nothing to do with being able to make money. The reason why many people have this impression is because they can spend money but not make money: starved to death, unable to make a sound.It will cost money and make money: being seen and making a sound.You can make money without spending money: Who knows that everyone makes a fortune in silence?
Can't spend money and won't make money: No one knows or sees the poor to death, still can't make a sound.

……

Meituan.com and Xiaonei.com started listing preparations at about the same time. However, the scale of Xiaonei.com is much larger than that of Meituan.com, so the progress is a bit slower, and the registration materials are still being prepared.At this rate, it won't be available until December.

"Old Tang, you have to hurry up and prepare for the listing of Xiaonei.com, and strive to complete the listing within this year."

After the listing, there is a lock-up period for major shareholders to sell stocks, and they can only be sold after the lock-up period expires.In order to maximize profits, Jiang Hui hopes to sell some of the stocks to cash out before the subprime mortgage crisis, and then consider repurchasing them at a discount.

The lock-up period means that within a certain period of IPO, non-tradable shareholders of listed companies are not allowed to sell their shares in the secondary market.

After the lock-up period expires, the number of outstanding shares on the market will increase.If the restricted shareholders massively sell the company’s stock after the expiration date, it may cause the stock price to fall, especially the behavior of the company’s major shareholders and senior executives to sell a large number of stocks, which is easily understood by the market as the company’s insiders are not optimistic about the company’s stock prospects.Therefore, exchanges in each region will set a lock-up period of half a year to a year.

"Understood, the main reason is that we spent a lot of time calculating the valuation of several branches of Xiaonei in the early stage, and the speed should be much faster in the future."

Similar to Meituan.com, Xiaonei.com also reorganized several branches with different shareholding distributions into a Xiaonei.com Technology Co., Ltd.

Due to the large size of the island branch of Xiaonei, it will take some time for the valuation of offices in multiple countries and regions.

When Xiaonei raised funds at the beginning of the year, the combined valuation of several branches had already reached 600 billion, and now it has grown by more than [-]%. After listing, it is very likely to break through [-] billion.

"For those equity incentives promised before, the relevant exercise of rights must be done in a timely manner to avoid unnecessary losses to employees and cause turmoil in the company's operations."

Jiang Hui gave some shares to the early employees of Xiaonei. Although after many capital injections and financing, these shares have left about 0.1%, but the value is not low at all.

The employees who entered the company later were not so lucky. Xiaonei only rewarded managers above the minister and employees above the G5 level with stock options.

What about option rewards?It may be easier to understand with an analogy.

公司2005年1月份给了2000股期权，行权日期为2007年1月，行权价格为5元。什么意思呢？

That is to say, by January 2007, the company's stock can be purchased at a price of 1 yuan per share.

如果到了那个时候，公司的股价是10元，那么选择行使权力：5元/股的价格买入，那就等于花了2000*5=10000美元的价格买到了市值 10*2000=20000美元的股票。

However, if the company's stock price was 2007 yuan in January 1.Then, it would be foolish to exercise power at that time.At this time, we can only temporarily give up exercising the option, and wait until the company rises above 2 yuan before exercising the option.

I believe you also understand the benefits of issuing options to the company. Only when the company makes a fortune can you make a fortune. Therefore, this method can be a good way to encourage employees: hurry up and work~
(End of this chapter)