Tan Zongming had sent Andy a confidential document on Hongxing before. In addition to some of Hongxing's own industrial models, there is also a financial model situation. The importance of such a document can be roughly determined at what price to acquire the company, whether the business model is good, what is the property status, and a very important point of debt.
When acquiring this company, of course, you must also know whether the debt will exceed the expected value after taking over it.As much as possible, avoid taking too much debt after the acquisition, and the loss is not worth it.
Of course, in reality, it is not easy to get confidential documents, so Hongxing doesn’t need to ask you to know that there must be Tan Zongming’s inner demon, and his position is not low. Tan Zongming has been targeting Hongxing for quite a long time.
In addition to actively understanding the operation of acquiring the company, intermediary institutions are also indispensable.
Generally, it includes at least an accountant and lawyer. Depending on the complexity of the project, it also includes tax accountants, appraisers, domestic and foreign company registration agencies, and signing employment agreements.
After these institutions have completed the reporting, the next step is to negotiate with the acquired party, signing of documents, reviewing the authenticity of qualifications, and the rights and obligations of both parties.
For example: If the acquired party makes corresponding standardized adjustments to the operation of the company and the ownership of the assets. If the adjustment cannot be completed in the short term, it must issue a commitment to complete the standardized adjustment within a certain period of time.
The complexity can be imagined.
After the final acquisition is successful, the acquirer will send some personnel to the acquired company's management, such as Ctrip's acquisition of Qunar and Zhuang Chenchao's departure, and the management class will be assigned by Ctrip.
Replacing managers will facilitate the implementation of new management plans. Similarly, it will take a certain amount of time to comfort the original employees at the grassroots level to avoid large-scale employee resignation after the acquisition.
There will be many adverse situations during this transition period of management stage, which require gradual adjustments from managers.
A brief summary is that acquisition is an art that combines the integration of finance, legal affairs, management, business and taxation, and is by no means a simple split and reorganization.
As for the reason for the acquisition, it may be that small companies are facing transformation and listing, or operating difficulties, or resource integration of large companies. So Andy himself is actually unaware of it, thinking that it is a simple merger and acquisition, and he doesn't even agree with the acquisition at an elevated price.
Unlike Zhang Weihao, Tan Zongming is taking the route of full acquisition, so he is facing many difficulties now. Even if there are Wall Street elites like Andy, the elites are not omnipotent. He is not sure about the news himself, so he does not dare to take action at a premium at too high. After all, if the news is really confirmed, it may not be his turn to take action.
Disney first inspects the city, and then secretly discusses what city and area it is building a Disney park. This is not the first time I have done such a business. Naturally, I will not simply expose my true intentions casually. I often give some misleading information, interfere with the layout of some local large enterprises and wealthy families, and do not want to make wedding clothes for others to increase their subsequent operation and maintenance costs. No one's money is not blown by the strong wind.
So at present, we have set up seven regions in two cities. Hongxing is just one of them. Tan Zongming and the people behind him think that when acquiring Hongxing at a reasonable price, they will not suffer any losses. Even if Disney does not choose that region, the merger itself is still very valuable and can obtain considerable profits, but the premium is really too large. Before we can't get the news, there is some risk. So now it is only the early stage of the merger and acquisition. On the one hand, we are making relevant preparations and on the other hand, we are waiting for the final result.
Zhang Weihao happened to have the final news about this, but he was also a little afraid of alerting the enemy, so he didn't dare to make too fierce. For the time being, he mainly made a profit from the price difference. Anyway, the land was there, so he could do a long-term business at the worst, so he would not lose money.
Hongxing Group Co., Ltd. is a wholly owned Hong Kong-owned enterprise investing in Shenzhen. It has three wholly owned factories and four joint ventures, covering an area of more than 10,000 square meters and has 2,000 employees. In Shenzhen, Hong Kong and the United States, there are more than 30 2D and 3D children's education tutors and product designers, 50 sample development and production teams, with annual sales of more than US$30 million.
However, toys are just Hongxing's early business. As early as the beginning of this century, Hongxing was invited by the Mocheng government to come to the Mocheng to build a factory and invest. Unlike the Shenzhen Stock Exchange, which mainly focuses on toy parenting products, the Mocheng mainly focuses on clothing and sports shoes.
At present, the branch of Magic City has developed into a large sportswear enterprise integrating R&D, production and sales, with nearly 30,000 employees.
The company has more than 7,000 stores worldwide, and its products are marketed in Europe, Southeast Asia, the Middle East, North and South America, Africa and other countries and regions. It has exclusive trademark rights in more than 100 countries around the world, with a brand value of more than 21.9 billion. It has successively won the honors of China's 500 Most Valuable Brands, the Top 500 Asian Brands, and the Forbes' Top 200 Asia.
Therefore, one of the very important listed companies under such a large group spanning multiple industries is not so easy to acquire. Although Hongxing, the Magic City, can only take control of the shares directly, after the Hongxing Group behind it takes action with the relevant families, the acquisition is not so easy.
If it were the entire Red Star Group, its market value at this stage would involve nearly HK$80 billion. The reason is that it is HK$ is that the parent company is a listed company in Hong Kong, so this merger is very difficult. Otherwise, Tan Zongming would not have spent such a huge price to invite Andy to come and take charge of the related work.
The main reason is that it cannot be confirmed at this stage. If it can be confirmed, not to mention 80 billion, hundreds of billions can be paid, and there is no shortage of money at all. But the question is, will it be his turn to Tan Zongming at that time?
Because Tan Zongming concealed this key information, she is not very optimistic about Hongxing, especially Hongxing Group, if she really wants to acquire it, it will likely be ruined. Only Hongxing Erke, a listed company in the Shanghai Stock Exchange, is better, and has a lot of value, especially those factory land and the employee dormitory of the R&D center of the headquarters building. These lands really have considerable development value.
When acquiring this company, of course, you must also know whether the debt will exceed the expected value after taking over it.As much as possible, avoid taking too much debt after the acquisition, and the loss is not worth it.
Of course, in reality, it is not easy to get confidential documents, so Hongxing doesn’t need to ask you to know that there must be Tan Zongming’s inner demon, and his position is not low. Tan Zongming has been targeting Hongxing for quite a long time.
In addition to actively understanding the operation of acquiring the company, intermediary institutions are also indispensable.
Generally, it includes at least an accountant and lawyer. Depending on the complexity of the project, it also includes tax accountants, appraisers, domestic and foreign company registration agencies, and signing employment agreements.
After these institutions have completed the reporting, the next step is to negotiate with the acquired party, signing of documents, reviewing the authenticity of qualifications, and the rights and obligations of both parties.
For example: If the acquired party makes corresponding standardized adjustments to the operation of the company and the ownership of the assets. If the adjustment cannot be completed in the short term, it must issue a commitment to complete the standardized adjustment within a certain period of time.
The complexity can be imagined.
After the final acquisition is successful, the acquirer will send some personnel to the acquired company's management, such as Ctrip's acquisition of Qunar and Zhuang Chenchao's departure, and the management class will be assigned by Ctrip.
Replacing managers will facilitate the implementation of new management plans. Similarly, it will take a certain amount of time to comfort the original employees at the grassroots level to avoid large-scale employee resignation after the acquisition.
There will be many adverse situations during this transition period of management stage, which require gradual adjustments from managers.
A brief summary is that acquisition is an art that combines the integration of finance, legal affairs, management, business and taxation, and is by no means a simple split and reorganization.
As for the reason for the acquisition, it may be that small companies are facing transformation and listing, or operating difficulties, or resource integration of large companies. So Andy himself is actually unaware of it, thinking that it is a simple merger and acquisition, and he doesn't even agree with the acquisition at an elevated price.
Unlike Zhang Weihao, Tan Zongming is taking the route of full acquisition, so he is facing many difficulties now. Even if there are Wall Street elites like Andy, the elites are not omnipotent. He is not sure about the news himself, so he does not dare to take action at a premium at too high. After all, if the news is really confirmed, it may not be his turn to take action.
Disney first inspects the city, and then secretly discusses what city and area it is building a Disney park. This is not the first time I have done such a business. Naturally, I will not simply expose my true intentions casually. I often give some misleading information, interfere with the layout of some local large enterprises and wealthy families, and do not want to make wedding clothes for others to increase their subsequent operation and maintenance costs. No one's money is not blown by the strong wind.
So at present, we have set up seven regions in two cities. Hongxing is just one of them. Tan Zongming and the people behind him think that when acquiring Hongxing at a reasonable price, they will not suffer any losses. Even if Disney does not choose that region, the merger itself is still very valuable and can obtain considerable profits, but the premium is really too large. Before we can't get the news, there is some risk. So now it is only the early stage of the merger and acquisition. On the one hand, we are making relevant preparations and on the other hand, we are waiting for the final result.
Zhang Weihao happened to have the final news about this, but he was also a little afraid of alerting the enemy, so he didn't dare to make too fierce. For the time being, he mainly made a profit from the price difference. Anyway, the land was there, so he could do a long-term business at the worst, so he would not lose money.
Hongxing Group Co., Ltd. is a wholly owned Hong Kong-owned enterprise investing in Shenzhen. It has three wholly owned factories and four joint ventures, covering an area of more than 10,000 square meters and has 2,000 employees. In Shenzhen, Hong Kong and the United States, there are more than 30 2D and 3D children's education tutors and product designers, 50 sample development and production teams, with annual sales of more than US$30 million.
However, toys are just Hongxing's early business. As early as the beginning of this century, Hongxing was invited by the Mocheng government to come to the Mocheng to build a factory and invest. Unlike the Shenzhen Stock Exchange, which mainly focuses on toy parenting products, the Mocheng mainly focuses on clothing and sports shoes.
At present, the branch of Magic City has developed into a large sportswear enterprise integrating R&D, production and sales, with nearly 30,000 employees.
The company has more than 7,000 stores worldwide, and its products are marketed in Europe, Southeast Asia, the Middle East, North and South America, Africa and other countries and regions. It has exclusive trademark rights in more than 100 countries around the world, with a brand value of more than 21.9 billion. It has successively won the honors of China's 500 Most Valuable Brands, the Top 500 Asian Brands, and the Forbes' Top 200 Asia.
Therefore, one of the very important listed companies under such a large group spanning multiple industries is not so easy to acquire. Although Hongxing, the Magic City, can only take control of the shares directly, after the Hongxing Group behind it takes action with the relevant families, the acquisition is not so easy.
If it were the entire Red Star Group, its market value at this stage would involve nearly HK$80 billion. The reason is that it is HK$ is that the parent company is a listed company in Hong Kong, so this merger is very difficult. Otherwise, Tan Zongming would not have spent such a huge price to invite Andy to come and take charge of the related work.
The main reason is that it cannot be confirmed at this stage. If it can be confirmed, not to mention 80 billion, hundreds of billions can be paid, and there is no shortage of money at all. But the question is, will it be his turn to Tan Zongming at that time?
Because Tan Zongming concealed this key information, she is not very optimistic about Hongxing, especially Hongxing Group, if she really wants to acquire it, it will likely be ruined. Only Hongxing Erke, a listed company in the Shanghai Stock Exchange, is better, and has a lot of value, especially those factory land and the employee dormitory of the R&D center of the headquarters building. These lands really have considerable development value.
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