Perfection of Rebirth

Chapter 885 Acquisition Plan
For overseas acquisitions, China provides different levels of support at different stages. Of course, the nature of the acquired companies is different, and the support is definitely different.

"Okay, but we'd better communicate with the local government in advance, and increase the local government's support for us by promising some investment. Although the bank is a vertical management model, the local government can't control others in theory, but the theory is In theory, in practice, with the support of the local government, we will have many advantages in terms of interest, approval speed, and supervision of M&A loans.”

Although Guanghui Group's reputation is very good now, if it borrows from banks on a large scale many times, it is difficult to guarantee whether these institutions will have any ideas, so Guan Weidong suggested submitting it to communicate with the local government, Jiang Hui thinks it is quite reasonable .

"Just do what you said, and keep in touch with relevant departments. I think Guanghui Group will still get support for its foreign investment and acquisition of high-quality companies."

China's foreign direct investment started relatively late, and the investment method was mainly new construction, and overseas project contracting and labor export were the main forms of investment.In the 90s, China's foreign direct investment developed rapidly, and overseas mergers and acquisitions gradually became an important way for China's enterprises to invest abroad.

In fact, we can divide the development process of China's overseas M&A into two stages, which correspond to the two peak periods of China's foreign direct investment development.

The first stage, from 1992 to 2000, saw the first peak of foreign investment. In this stage, window companies or companies with relatively innovative thinking were the main players, and they concentrated on industries and industries that could be popular in the local market. Products, such as mechanical and electrical products, textile products.From a regional point of view, the distribution of investment at this stage is also mainly concentrated in Southeast Asian and African countries that have trade relations with China.Generally speaking, foreign investment at this time is mainly tentative, and the scale of mergers and acquisitions is not large.

In the second stage, since China's accession to the WTO in 2000, China's foreign investment has reached its second peak.The total foreign investment surged from more than 2000 billion US dollars in 20 to more than 2001 billion US dollars in 70. At this time, Chinese companies realized that only by going abroad and integrating into the world economic system can they have a stronger ability to survive.

In 2015, Tianchao Enterprises implemented a total of 593 overseas M&A projects, with a cumulative transaction value of US$401 billion (including overseas financing), of which direct investment was US$338 billion, accounting for 84.3%, involving almost all industries in the national economy.

At that time, various forms of financing have also become more diverse.

"No problem. In addition, we investigated a lot of companies last year. If you want to complete the merger and acquisition this year, then in the next few months, Mr. Jiang, you must be ready to fly around the world."

For a long time, Jiang Hui was not very interested in going abroad, and spent most of his time working in the Guanghui Building of the Imperial Capital, so Guan Weidong reminded him specially.

Last year, Jiang Hui arranged for Guan Weidong to look for potential acquisition targets. Guan Weidong set up three acquisition evaluation groups for this purpose, including the mobile phone parts industry, the auto parts industry and other industries.

These industries are doing relatively well, mainly island countries, the United States and Germany. No matter which country they are in, Jiang Hui needs to personally participate in some negotiations or sign.

Just like the acquisition of Sanyo this time, although it has basically been negotiated now, and the signing ceremony is only two days away, even if it is not counted as the preparation time for Guanghui Investment in the early stage, Jiang Hui has already spent half of his days in the island country. It's been a month.

This is still very fast. Some acquisitions are delayed and negotiated every six months, or even several years.

"If you want to wear the crown, you must bear the weight first. Since Guanghui Group is going to launch the mode of buying, buying and buying, then I, the general manager, can't stay in the office every day. Don't worry about the schedule. If you need to go on a business trip, you can contact Liao Yun at any time , I asked her to arrange the corresponding time as much as possible."

"Mr. Jiang, with your words, I'm relieved. After that, I won't be polite. Don't blame me when the time comes." Guan Weidong said with a smile.

"I wish you would arrange more business trips for me to acquire more companies."

"Mr. Jiang, this time we won Sanyo, which is the largest acquisition of the group. I guess many people are watching our jokes. Do you have any plans?"

"Sanyo's current business involves too much, and it can even be said to be a bit overwhelming. After completing the transfer of Sanyo's equity, the first thing we need to do is to spin off some meaningless business units."

Sanyo started from electric lights, and has been involved in many fields such as audio, information and communication, household appliances, commercial machinery, electronic parts, batteries, and biopharmaceuticals.And in each field, there are many kinds of products. In terms of home appliances that are most familiar to everyone, Sanyo basically produces all kinds of home appliances, from washing machines, refrigerators to TVs.

For Guanghui Group, the meaning of staying in departments such as household appliances is very low. On the contrary, domestic companies such as Haier and Midea should be very interested in him.

If these divisions that Guanghui Group is not interested in but are thoughtful of other Tianchao enterprises are spun off and sold at a suitable price, it is possible that Guanghui Group can still make a fortune.

For example, Sanyo's washing machine was sold to Haier in later generations.

In fact, Haier and Sanyo are still very close. This matter started in the 90s. This is probably a mistake that Sanyo made that everyone criticized.

At that time, Sanyo washing machines accounted for more than half of the market in the island country. However, due to the high entry fee requirements of several major electrical appliance retailers in the island country, Sanyo, in a fit of anger, built its own sales network and competed with the home appliance retailers on prices.

In order to reduce production costs and maintain low-price sales, Sanyo began to entrust part of the production of washing machines and refrigerators to Tianchao Refrigerator Group in the late 90s, of which Haier was the main partner.

With the technical support of Sanyo, Haier produced qualified "Sanyo brand" products.As a result, Haier gained a good opportunity for rapid development, while Sanyo's value plummeted because its products were marked "Made in China".

Sanyo should be the first multinational electrical appliance company in the island country to entrust its products to Tianchao for processing. However, Sanyo is obviously eating "crabs" too early. "

In the 90s, it was different from the present. It was a concept made by the Celestial Empire, which was rubbish.Therefore, although low-price sales have been achieved, Sanyo has been branded as a bargain in the island society.This can be regarded as one of the reasons for Sanyo's failure and no return.

However, for Jiang Hui, he has to thank Sanyo for these failures, otherwise there would be no such thing as Guanghui Group.

(End of this chapter)