Chapter 141 - Acquisition! (1/2)

Pei Qian thought for a while and asked, “This is the first time I am acquiring a company. Are there any things I should take note of?”

Assistant Xin flipped through her notebook and replied, “There are still a lot of risks involved. For example, such companies oftentimes have issues with their registered capital. We have to check if they have any false capital contribution or withdrawal of capital.

“Furthermore, we also have to check their company assets, liabilities, and owners’ equity, etc., and take note of their fixed assets depreciation rate, amortization of intangible assets, non-recoverable assets…

“However, this is a small-scale private enterprise. The owner is Du Ruijie. He and another partner hold all the shares to the company. However, in reality, Du Ruijie is the main person in charge of the operations of the company.

“I suppose that he is currently begging to hand the company over. After all, the company has negative equity and has been suffering losses every month. If we wait a little longer, we should be able to lower the price and acquire the company with just a few hundred thousand yuan.

“If you are patient enough, we might even be able to get it at a lower price.”

Pei Qian was momentarily stunned. “Why is it so cheap?”

That made him a little disappointed.

He thought the other party would sell the company at least at a price of one or two million yuan. Yet, they could acquire it with merely a few hundred thousand yuan?

Assistant Xin nodded and replied, “Of course, Boss Pei. This company was initially funded by Du Ruijie and the other partner. The startup capital was only a million yuan. However, because of their good luck, they had made some money from the games that they produced and thus expanded to its current scale.

“Du Ruijie had earned buckets from that. If he could sell this mess that he had in his hands, he could earn another few hundred thousand yuan. He is dying to get that money. There is no way he dared to raise the price.

“If no one takes over the operations of the company, he might only be able to sell his company assets at a cheap price. I heard that Du Ruijie even planned to give the computers that the employees used to them and deduct that from their salary.”

Pei Qian was speechless. “…”

So creative!

On one hand, he could save the trouble of selling those huge numbers of second-hand business computers. On the other hand, he could solve the problem of delayed wages of the employees. This Boss Du is such a genius!

Pei Qian did not want to raise the price. On one hand, the act of forcefully raising the price was too unnatural. It was way too obvious if he raised the price to a few million if he could have acquired the company for merely a few hundred thousand yuan. Doing so would draw suspicion to himself.

On the other hand, Pei Qian wanted to pool his funds into opening more Fish-Catching Internet Cafe. Therefore, he did not have much working capital in his hands.

Therefore, it was fine if they just went with the standard price.

Assistant Xin also pointed out several other important things that he had to do, such as checking the company’s stakeholder changes and balance sheet, collecting the employees’ labor contract and information on their insurance and wages, as well as notarizing relevant documents…

Pei Qian did not have to worry about those. He was only responsible for providing the money. These details would obviously be left to the professionals.

Assistant Xin closed her notebook and said, “There should be all the information to take note of. Boss Pei, so you want to conduct an inspection under a disguise?”

Pei Qian was stunned. “Inspect what?”

“If you had confirmed the acquisition, Boss Du would definitely make some preparations when you went over to inspect the company. That prevents you from understanding the real situation in Shang Yang Games,” Assistant Xin explained. “You can conceal your identity and have a walk over there to observe the working state of the employees as well as the working environment. That will help us push down the prices at the negotiation table later on.”

Pei Qian understood her meaning. Her suggestion was similar to a sudden inspection by the superior of the company.

If the other hand caught wind about the inspection, they would definitely do some things for show. The superior would not be able to truly understand the situation there then.

Pei Qian shook his head and said, “That is not necessary. Those changes done for show would be insignificant. There are some things that you can never hide.”

Boss Pei appeared very confident as though he already had the company in his hands.

Assistant Xin did not probe into that any further. “I will contact the other party to arrange for a meeting with Boss Du.”

Pei Qian nodded his head. “The earlier, the better!”