Chapter 1577 Can't Stop for a Few Days?

After reading the top ten retailers, everyone talked about Dashang.

Then, Li Dong scanned down again, and when he saw Baijia, Li Dong lightly tapped on the table and said: "Park's business in the mainland is not too much, and most of the business in the mainland is concentrated in South China. .

In South China, ParknShop's revenue is RMB 4 billion, which is not low, but it is not too strong either.

The real strength of Pokka is the achievements in Hong Kong and Macau. In Hong Kong and Macau, Pokka’s revenue has reached more than 12 billion yuan, and the market share in these places is very high.

In a market as large as the Mainland, there are not many retail companies with a revenue of more than 10 billion, let alone these two small areas in Hong Kong and Macau.

Therefore, when we acquired Baijia, what we valued was not Baijia's business in the mainland, but Hong Kong and Macau.

However, Hutchison is also a rich and powerful owner. Even if an agreement can be reached on the merger, the other party's asking price will not be too low.

At the same time that we issued an M&A offer to ParknShop this time, there were actually other companies extending an olive branch, including many international retail groups, who also hoped to enter Hong Kong and Macau.

The mainland China market is currently too competitive, but Hong Kong and Macau are not bad.

And as a bridgehead, it can also spy on the mainland market and enter China at any time.

Last night, I called Lao Li's eldest son and talked about it. The other party's offer was not low. Although the excuse was someone else's offer, it was obvious that the other party's psychological price was very high.

3.5 billion US dollars, about 24 billion RMB quotation..."

When everyone heard this, Chen Lang frowned and said, "The price is too high!

At the beginning, Carrefour's business was much stronger than that of ParknShop, and its revenue even reached twice that of the other party.

Today's ParknShop, even including the mainland, has a total revenue of only 16 billion yuan.

In addition, there are actually very few self-owned properties in ParknShop, and most of them are shopping malls under Hutchison. The business we acquired this time does not actually include these commercial real estate projects.

For a simple department store business, the asking price is 24 billion. Do you really think our money is not money?

In addition, the profit margin of Baijia is not high, reaching 6%. Based on last year's revenue, even if the profit is 1 billion yuan.

If it spends 24 billion to acquire the other party, the return on investment is only a little over 4%.

Of course, simply looking at the return on investment is not enough to explain anything. After all, our retail business in Hong Kong and Macau is blank, which can generate a lot of added value for us.

The return on investment is less than 8%. In fact, for us, the loss outweighs the gain.

About 12 billion has been acquired by the other party. This price is acceptable. Even if it plays an additional role, the added value will not exceed 20%.

In other words, about RMB 14 billion is our highest acceptable price.

Now the other party is asking 24 billion yuan, which is more than 10 billion yuan. Mr. Li, I think the other party has no sincerity.

No matter how much we talk about this kind of quotation, it will be difficult for us to negotiate it. "

Yuan Chengdao also nodded and said: "Indeed, 24 billion, Baijia is not worth the price.

Even if it is Guomei, although we spent a lot at the beginning, Guomei is the number one retailer in China, which has a different meaning.

ParknShop is not number one in Xiangjiang, let alone the mainland market. He Huang's appetite for 24 billion is scary.

In commercial mergers and acquisitions, when encountering this kind of opponent, it usually means that the other party does not have much sincerity to negotiate, and drives away those companies that want to participate in the merger with a high price. Mr. Li, the other party should not have considered whether to sell Baijia. . "

Others also said that the price of 24 billion was indeed too high.

Before the acquisition of Carrefour, Yuanfang only spent more than 10 billion yuan, and Carrefour's revenue was twice that of the other party.

And the two are the same, they don't have too many self-owned properties, which is also a very important point.

But at that time, Carrefour was in dire straits and was greatly rejected in China. In addition, Yuanfang suppressed it in the mainland. The other party could say that they sold it at a loss.

However, even so, with about half of the opponent's revenue, Baijia

The value will not be inflated to this point.

Li Dong listened to a few words, and then suddenly said: "If you want to acquire a big business now, I mean their retail business, how much do you think is enough?"

As soon as these words came out, the eyes of several people changed slightly.

Chen Lang thought for a while before saying: "We don't know much about the big business, including their profitability, debt ratio, proportion of self-owned properties, and other parameters. We don't know much about them.

Before, we didn't do too much research on Dashang.

However, as far as I know, the profit margins of big merchants are not too high. The other party adopts the method of small profits but quick turnover, which is one of the reasons for their high revenue.

According to the disclosed data, the revenue of 75 billion, the profit of 6%, plus the proportion of self-owned properties of about 10%, the debt ratio is below 20%.

If you want to merge and acquire the retail business of Dashang, it is almost hopeless if it is less than 50 billion. "

As soon as these words came out, many people had a toothache.

Li Dong also said helplessly: "More than 50 billion, is it that high? Guomei probably spent this much money..."

Everyone is silent, the situation is different.

At the beginning, Guomei encountered a crisis and was taken advantage of by a distant party.

In fact, not only Guomei and Carrefour, but Yuanfang generally take advantage of other people's dangers. All the companies acquired by Yuanfang did not bid too high.

But Dashang is living a very good life now, dominating the Northeast with no one to compete with.

In this case, if you want to acquire a big business, the price will not be small.

And for these retail companies, regardless of whether they are listed or not, the market value is not enough to represent anything, and it depends on the actual value.

Unless you cooperate with the other party and can have an industrial complementary effect on the other party, the other party may let you enter the market at a low price.

But if you simply want to acquire the other party, you will have to pay a high price.

Li Dong rubbed his chin, thought for a while and said: "According to your standards, the big business is worth as much as 50 billion.

What about Wumart?

You know, Wumart’s asking price was not too high at the beginning.

At that time, the other party wanted to replace our store in Beijing, and offered 25% of the equity and 1 billion in cash. The actual price of Wumart was just over 10 billion.

Wumart and Jingkelong, this time the revenue is not low, reaching 43 billion..."

Chen Lang interrupted: "President Li, this is different.

Moreover, Wumart's debt ratio is not low. At the beginning, because of too much debt, banks refused to lend. Wumart gave up the era of mergers and acquisitions, and we seized the opportunity.

As for Dashang, although we haven’t done any research, the situation is definitely much better than Wumart’s.

In addition, Wumart's profit margin is not high, big business is dominant in the Northeast, and Wumart needs fierce competition in the capital.

Also, we were exchanging at that time, so we didn’t need to pay, and the other party was able to form an alliance with Yuanfang, which is why we paid such a price.

But if you want to acquire the other party, that's not the case.

Simply wanting to acquire Wumart, there is no more than 15 billion funds, and there is no hope.

This is still based on the willingness of the other party. If the negotiation fails, the asking price is 20 billion, and it is normal for Wumart not to agree.

In short, if you want to force a acquisition with funds, you will definitely spend more money.

Dashang and Wumart, if they want to complete the acquisition and achieve dominance in the north, the group needs to prepare at least 70 billion funds.

The premise is that a wholly-owned acquisition, if it is just a simple shareholding, the cost is much lower, and shareholding and acquisition are not the same concept..."

As the former king of mergers and acquisitions, Chen Lang has acquired many companies in Huarun, especially the acquisition of Suguo, which has allowed Huarun to rise in the retail business and is an existence that cannot be ignored in Huaxia's retail industry.

What he said, even if the evaluation may not be very accurate due to inaccurate materials, as long as the actual situation of the other party is similar to his budget, the price should not be too different.

70 billion, this is the price for Yuanfang to open up the northern market.

Coupled with Yuanfang's own investment in the north before, and Carrefour's investment in the north when it acquired Carrefour.

In the end, in the northern market alone, Yuanfang wants to complete the layout and be the absolute number one, and it will definitely cost more than 100 billion.

Li Dong has a slight headache. He hasn't expanded internationally yet, and he doesn't think about the major retail groups that he has been targeting before the acquisition.

Just a big business and Wumart alone will cost 70 billion yuan, which is still the best situation. After this calculation, if you want to complete your plan, 300 billion yuan will not be enough.

Seeing Li Dong pondering, Chen Lang couldn't help saying: "President Li, you don't really want to talk to the other party about mergers and acquisitions, do you?

In fact, in my opinion, it is not very cost-effective to merge and acquire these companies now.

Our business has spread widely. If we carry out mergers and acquisitions as a whole, many resources will overlap.

As for the split and merger, even if these companies want to sell, I am afraid they will not agree.

When we acquired Carrefour, our resources overlapped a lot, and some stores were closed.

But at that time, Carrefour offered a low price, and we could still accept it.

Now Dashang is different from Wumart. If we take the initiative to propose a merger and acquisition plan, we need to bear the resources wasted in it. "

Li Dong interrupted: "Let's not talk about this first, if, I said that if we complete the mergers and acquisitions of ParknShop, Dashang, and Wumart, then we will have a complete layout in the four major regions of North China, Northeast China, South China, and Northwest China.

In Central China, East China, and Southwest China, we have done very well so far. If the layout of the other four regions is perfect, we will be truly invincible in China.

No, you have to add the Wushang Federation in Central China.

After completing the merger and acquisition plans of these four companies, are we completely invincible? "

Chen Lang smiled wryly: "The premise of being invincible in performance is that the integration can be successfully completed.

Among other things, at least in the department store business, no one can surpass us.

These four companies can be acquired with at least 100-120 billion funds.

This even exceeds the total value of our current retail group!

Mr. Li, this is actually not cost-effective. Not to mention the cost of too much money, the group will be under too much pressure to merge so many companies at one time. It is unknown whether Yuanfang Retail can complete the integration.

I don't talk about money anymore. Just the integration work cannot be completed within a year or two. "

"The funds of more than 100 billion yuan, the four together, the revenue performance of 180-200 billion yuan..."

Compared with the distance, it seems that it is indeed not worthwhile.

The current Yuanfang retail does not include the online part. If it is purely offline and Guomei is added, the goal this year is to hit the 300 billion mark.

As for the value of Yuanfang Retail before, some people questioned Li Dong's false estimate of 100 billion.

Now the ratio of the other party’s own property and the profit margin are not necessarily better than Yuanfang’s. Using more than 100 billion yuan in exchange for about 200 billion yuan in revenue seems to be a lot of loss.

However, Yuanfang's current achievements are due to its slow growth in the later period. Now it is necessary to pay more for the forced merger and acquisition.

Li Dong knocked on the table again and murmured: "With the acquisition of these four companies, the offline retail revenue should reach the 500 billion mark this year.

500 billion..."

Yuan Chengdao, who probably guessed Li Dong's goal, couldn't help reminding: "Even if we can reach 500 billion in revenue, but this kind of merger without picky food, even if the merger and acquisition plan is completed, our costs and expenses will rise, and the profit margin will decline again.

In the end, I'm afraid the profit margin will be less than 5%.

Even, it will be lower!

The scale is large, but perhaps the profit is not much improved compared to the previous one.

And we spent hundreds of billions of funds!

These funds, even if they are stored in the bank, may exceed this rate of return.

Mr. Li, think twice! "

5% seems to be quite good, but in fact, it is terrible.

For large groups, returns below 10% are not worth investing in.

Of course, retail companies provide a lot of cash flow, and the profit margin can be slightly lower, which can be lower than 5%. It is absolutely not worthwhile when there is no impact from e-commerce.

Is it really meaningful to simply increase revenue?

At least in Yuan Chengdao's view, the significance is not too great.

With this money, you can do a lot of things, and you can also select some suitable companies to acquire, instead of just looking at who has high performance and who is strong in the local area, just buy whoever you want.

Also, where to get the hundreds of billions of funds in the distance?

Even if the loan can reach 100 billion yuan, all the money earned by the acquired company will become the interest of the bank, which means that there is no real profit in the distance. Is this necessary?

Not only Yuan Chengdao was helpless, but Chen Lang also probably understood Li Dong's meaning, frowned and said: "Mr. Li, the overloaded operation is actually not very meaningful.

If it's just for being number one, we'd be by now.

When other companies encounter a crisis, and the other party has the value of mergers and acquisitions, then we can enter the market regardless of the cost.

But now, other companies have not encountered a major crisis. At this time, entering the market regardless of cost does not quite meet our expectations in terms of the pace of the group's growth. "

Both of them persuaded a few words, but Li Dong smiled and said: "Sometimes, don't just look at the immediate benefits.

If the merger is really successful and incorporated into our system, Huaxia, except for South China, is still a little competitive, and competition in other places can be subdued.

In 2009, the offline revenue reached 500 billion yuan, and we may double it in 10 years. Of course, this possibility is a bit low.

In the early stage of enterprise development, we may not aim to make money..."

He said that in the early stage of the enterprise development, the people present were dumbfounded.

It's all this time, and it's still in the early stage of enterprise development?

Yuanfang has achieved this point. It stands to reason that at this time, the goal should be to make profits instead of blindly expanding the scale.

Unless Li Dong really wants to be the world's number one retailer, otherwise, blind expansion at this time is not worth it in everyone's eyes.

Li Dong didn't care what they thought, and his tone accelerated: "Actually, you can still try, even if it doesn't work now, you can continue to talk later.

100 billion, the acquisition of four companies is not unacceptable in my opinion.

As for the funding... Let's talk about it first, and then talk about it. "

Such irresponsible words once again left everyone speechless, and even rolled their eyes.

100 billion, you don't have a penny now, how dare you say it!

If the negotiation is really going to be concluded, if there is no money to pay in the end, who will pay the bill?

Once such a situation occurs, the distance will become the laughing stock of the whole world.

Emotions, Yuanfang has always been bluffing, slapping a swollen face to pretend to be fat, right?

Since you have no money, why are you still talking about mergers and acquisitions?

In the field, no one answered the conversation at this time, and they didn't know how to continue.

In short, everyone is a little confused about Li Dong's thoughts now.

Just when the atmosphere fell into an awkward atmosphere, someone suddenly said: "President Li, there are small-scale demonstrations in Jiangcheng in Central China.

More than 50 distant employees gathered at the Jiangcheng headquarters, asking us to increase wages and reduce working hours..."

"Mr. Li, some situations have also occurred in the Shanghai stock market. Several senior executives and resigned managers from Carrefour brought Carrefour employees to us to ask for an explanation.

Especially those executives who have resigned are now asking us to compensate them for their losses.

Mr. Sun and Mr. Wang have already dealt with it..."

"President Li..."

The people who answered the phone next to them all reported at this time.

But Li Dong and the others breathed a sigh of relief.

There are not many places where the series happened. There are a total of eight places, including the evacuated places in the capital. The employees and management involved are about 300 people in total.

Compared with the hundreds of thousands of people in the distance, 300 people are considered a small proportion.

Before, everyone was worried that there would be thousands or even tens of thousands of demonstrations, but now they are only scattered in some areas, which is much better than everyone expected.

After listening to their report, Li Dong stopped talking about the merger and acquisition at this time, and said loudly: "Tell the local person in charge that the resigned employees and management don't want a penny!

Don't be polite to them, let the police dispatch, in broad daylight, illegal assemblies and demonstrations are illegal!

As for the employees from far away, let people go to appease them first. If they still gather together and refuse to leave, then you are welcome to fire them directly, and they will not pay any compensation fees. If you want to sue me, let them sue!

Yuanfang has achieved this level, dozens of hundreds of people want to defeat Yuanfang, that is too underestimating Yuanfang.

What's more, we don't have any place to feel sorry for them, the salary and treatment from afar, and there is nothing worthy of their participation in illegal assemblies.

As for the issue of working hours, I am aware of this point. Let people keep an eye on it. Some places have deducted employees' overtime wages. This is not a fake.

If there is an increase in working hours and no overtime pay, then we are fully responsible and will definitely give you an explanation.

But if you get overtime pay and tell me that the time is too long, you can tell them to get out quickly!

I am worthy of them by not letting everyone work overtime for free.

Let them go out and ask, how many companies have really achieved the point of paying overtime wages?

If you don't want to work overtime, then don't work overtime. There are many people who want to work overtime, but they don't work overtime and hate the low wages. Is it really a welfare home in the distance? "

While cursing, Li Dong talked about his solution.

If tens of thousands of people participate this time, then Li Dong has to consider the consequences. At this time, he has to throw out a series of new welfare policies.

But there are only a few hundred people in the whole country, and half of them are people who have left the company before. The number of remote employees who really participated is only about a hundred.

With such a scale, they are distributed all over the country, so it's no wonder Li Dong is being polite to them.

As a business, if you really want to say that you don't exploit employees at all, then it certainly doesn't exist. But if you can suppress this kind of exploitation to the lowest level, and suppress it to the point that everyone can accept, that is the success of the business.

Hundreds of thousands of employees and hundreds of people are dissatisfied. Such a ratio is not enough to affect anything.

Li Dong was so forceful this time, Yuan Chengdao and the others had no objections, and it was not a good thing to be blindly gentle. Since the scale is not large, it shows that the situation has been suppressed.

At this time, forcefully suppress the remaining people, so that the impact may be minimized.

While they were relieved, several people were still thinking about what Li Dong had said before.

In 2009, in order to make Yuanfang Retail's offline revenue exceed 500 billion yuan, Li Dong will probably implement his plan and acquire the four companies mentioned above.

The key is that, from the perspective of a professional manager, it is really not worth it.

Li Dong, what is he thinking?

Being rich doesn't work that way. Does he really think he can hit the No. 1 spot in the world's top 500?

If you can't reach the first place, how big is the difference between the second and the tenth?

Thinking about it, Yuan Chengdao and Chen Lang looked at each other, and they both felt a little headache. Can't this guy really stop for a few days?

Those bastards who called for Li Dong's return before were all the masters who stood up and talked without pain in their backs. When this one came out of the mountain, they were the ones who were in trouble.

He clearly agreed to rest for a few days after finishing the work in front of him, but it turned out to be a good thing. I'm afraid this person has already forgotten what he said. Is this person planning to say "I'll be fine in the future" for another ten years?