Rebirth 2004: I can make money by writing

Venture capital wants to invest in Renjian Fireworks?

Renjian Fireworks can be said to be a dark horse in the catering market, with rapid development and attracting much attention.

When Hao Qiang heard that there was a venture capital that wanted to invest, he couldn’t help but feel a wave of emotion.

However,

Renjian Fireworks is in good operating condition and has sufficient funds, so it does not need to introduce external investors for the time being.

Generally speaking, there are two situations to attract venture capital.

One is that the company is facing a shortage of funds and needs external financial support to promote development or deal with financial risks or crises;

The second is that the company hopes to introduce strategic partners to accelerate the company’s growth with the help of their resource advantages.

But for now, Renjian Fireworks does not need to seek external help in terms of funds.

As for resources, the company needs it, but it is not the right time yet.

Introducing venture capital now is equivalent to giving most of the profits to others.

Hao Qiang maintains a clear understanding of this, and is also cautious about the proposal of venture capital.

However, he still plans to meet to see how much they value Renjian Fireworks.

“Sister Qiu, I’ll be there in half an hour. Please ask the venture capitalists to wait in the conference room. Please ask Manager Jiang to wait.”

Hao Qiang replied to Qiu Xueya, the HR manager.

Ten minutes later, Hao Qiang drove to Tiansheng Building and met Jiang Ying to talk to her about venture capital.

Jiang Ying was familiar with this aspect. She suggested: “Boss, I think we are not short of funds now. We are in rapid development. There is no need to introduce venture capital.

Of course, if it is debt financing, you can consider it.

However, venture capitalists are mostly not happy. They are eyeing our company’s shares.”

Jiang Ying knew that the boss used the funds for other investments and told her about it, so she worked hard to raise funds for the boss.

Compared with equity financing, debt financing generally does not bring about the problem of control over the company.

Creditors only care about the payment of interest and principal, and do not participate in the daily business decisions of the company, which is equivalent to paying interest on a bank loan.

Of course, bank credit loans are also one of the main forms of debt financing.

Hao Qiang heard this and said with a little concern: “Are there any risks?”

Jiang Ying said: “There are some. In certain specific circumstances, creditors may interfere with the operation of the company. Boss, you may not like it. This mainly depends on the venture capital side.”

“I don’t like outsiders to dictate to the company. It’s tiring to take their money.” Hao Qiang nodded, “Let’s meet first. They may not be happy.

Let’s go and meet together.”

After speaking, Hao Qiang walked towards the conference room, followed by Jiang Ying.

After he came in, a young man and a young woman sitting in the conference room stood up. The young man greeted Hao Qiang: “Hello, Mr. Hao, I am Guo Cai, the investment manager of Yuecheng Huafeng Investment Company, and this is my assistant Zhou Chang.”

“Hello, please sit down.” Hao Qiang sat in the main seat and motioned for the two to sit down.

After Li Xin, the front desk, poured tea for everyone and then left the conference room. She was the one who entertained the guests just now.

After the two sides exchanged greetings, Guo Cai praised Hao Qiang a lot, saying that he was young and promising and talented.

However, Hao Qiang just smiled faintly and kept calm.

Once he got angry, he would lose the upper hand in the business negotiation.

The negotiation actually started when he answered the phone.

If Hao Qiang answered the phone and said he would meet immediately, it meant that he was in urgent need of funds.

But Hao Qiang didn’t. He gave half an hour and couldn’t let others wait too long. He got it just right.

After Guo Cai praised for a while, he saw that Hao Qiang still kept a calm smile, and he felt a little embarrassed.

Before coming, he thought Hao Qiang was too young and his business was booming by luck, so he wanted to see if he could fool him.

It seems that he made a mistake.

Of course, he is optimistic about the development of Renjian Fireworks.

“Manager Guo, you might as well speak frankly.” Hao Qiang still kept smiling.

“Mr. Hao, our company attaches great importance to the development of Renjian Fireworks and wants to have in-depth cooperation with your company.”

Generally speaking, venture capital companies mainly analyze founders, not companies.

If the founder is awesome, even if it is a newly established company, there will be a large number of venture capital companies flocking to it.

Hao Qiang nodded and took a sip of tea.

Guo Cai said with a confident smile: “According to the estimation of our institutional investment analysts, the current pre-investment valuation of Renjian Fireworks is 170 million yuan, and our company plans to raise 30 million yuan.

Under normal circumstances, we do not participate in the daily business decisions of Renjian Fireworks.

I believe that after our cooperation, Renjian Fireworks will develop faster.”

Hao Qiang really wanted to scold him when he heard the valuation of 170 million yuan.

Renjian Fireworks currently has 6 branches in operation, with a monthly profit of more than 4 million yuan and an annual profit ofThe profit exceeds 50 million yuan, which is very scary.

Generally speaking, the valuation methods commonly used to value a company include the price-earnings ratio method, discounted cash flow method, price-to-book ratio method, DuPont analysis method, etc.

The price-earnings ratio method is more commonly used, that is, the PE multiple.

In different industries or different development stages, the price-earnings ratio will also be different due to differences in growth rates.

The price-earnings ratio can also be queried through listed companies of the same type. For example, in the catering industry, in a certain period, the price-earnings ratios of A-share Quanjude and Xiang’e Qing were 30 times and 35 times respectively.

If it is used for Renjian Fireworks Company, the valuation is equal to = PE multiple of annual profit = 1.5 billion yuan to 1.75 billion yuan.

And Guo Cai said that the pre-investment valuation was only 170 million yuan, which is 10 times different from the actual situation.

In fact, Renjian Fireworks is in rapid development and it is not easy to value.

1.5 billion yuan to 1.75 billion yuan is just an assumption.

Normally, when a company is growing rapidly and has proven its crazy profitability, venture capital companies will give a very high PE multiple.

Of course, the company must go public within the deadline.

If it does not plan to go public, or does not go public for many years, the investment risk of venture capital companies will be high, and it will take a long time to recover the investment cost by relying on company dividends alone.

So, when raising funds, the listing plan will also be discussed.

“Manager Guo, you are really joking. Do you think we are not knowledgeable? Do you think the CFA certificate in my hand is fake!”

Jiang Ying couldn’t help it and said sarcastically.

Guo Cai and Zhou Chang thought that the young lady who had been silent was just a decoration, but they didn’t expect to meet an expert.

Just now, Hao Qiang just made a simple introduction.

“Manager Guo, I have something urgent to deal with today, so I won’t see you off.” Hao Qiang smiled speechlessly, feeling that he was wasting time and met someone who wanted to fool him.

After speaking, he stood up and left the meeting room, and didn’t want to say anything polite to them.

He was in a good mood recently and didn’t want to curse.

If it was before, he would have definitely cursed “Get lost, you rubbish”.

He was about to become the chairman, so he still had to maintain his demeanor.

After Jiang Ying saw the boss leave, she saw Guo Cai and Zhou Chang still in the meeting room, and said sarcastically: “You two, didn’t our boss make it clear enough? Go back to where you came from!”

Guo Cai knew that it was useless to explain anything, so he smiled awkwardly and quickly left the world, and the female assistant quickly followed.

He came here this time just to bet that Hao Qiang was young and didn’t understand this, and to see if he could fool him.

If the fool succeeded, he would make a lot of money.

In fact, he didn’t get the authorization of 30 million yuan in funds, and he couldn’t even take out several million yuan.

After signing the agreement, the financing funds would not be immediately received.

Guo Cai planned to sign the agreement with Hao Qiang, and then transfer the agreement to other venture capital institutions at a high price to make a quick buck.

This kind of trick of making money out of nothing really works if it meets a stupid founder.