Chapter 673 (2/2)

The three companies, different from Gucci or CK, are in good condition on the surface.

However, there are many problems inside.

Bulgari is an Italian jewelry and watch company, which is still controlled by the Bulgari family.

Compared with merysandro's van clenburg, the company's scale is much larger. In 1993, its turnover was equivalent to US $530 million, and its net profit was US $110 million. In addition, it has recently begun to seek listing on the Milan Stock Exchange, and its IPO valuation is expected to be between us $1 billion and US $1.5 billion.

Melisandro has been in contact with the Bulgari family.

For listing, the attitude of the Bulgari family is different. Of course, listing has many advantages, but it will certainly be bound by all kinds of constraints, both advantages and disadvantages.

It's also melisandro's chance.

However, although some members of the Bulgari family tend to cooperate with melisandro, according to the results of previous discussions, melisandro can get up to 30% of the shares of Bulgari.

This is not in line with Sofia's expectations.

Because melisandro already has a similar subsidiary, Fanke Yabao, which has a very good development momentum in recent years. In 1993, the turnover reached 350 million US dollars. Compared with 1990 before the acquisition, the overall turnover increased by 105%, and the scale is not much worse than that of Bulgari.Most importantly, melisandro has a 60% stake in Van clenburg.

Therefore, if only 30% of Bulgari's shares can be acquired, it will inevitably face a problem of resource balance.

With the same resources, it is self-evident which side the operators will prefer when holding 60% of the subsidiary or 30% of the subsidiary.

This is not what Sophia wants to see.

In order to avoid competitors, large luxury goods giants tend to eliminate potential threats through early acquisition.

Simon's memory of LVMH has done this kind of thing more than once.

However, melisandro, which is in a rapid rising stage, has not yet entered this stage.

If we want to acquire Bulgari, Sofia naturally hopes that this jewelry and watch company, which has a better foundation than van cletta, can go further, not because the uneven distribution of resources leads to unfair internal competition, or even leads to the final decline of one of them.

So if you want to maintain a balance, even if you don't want to take the same 60% stake in Bulgari, according to the assessment of melisandro's acquisition team, it will have to be at least 40%.

The 30% and 40% shares seem to be similar, but for the Bulgari family whose shares have been dispersed in the hands of various family members, it means whether melisandro will become the largest shareholder.

The Bulgari family is willing to accept external investors, but does not want to lead to the loss of control of the family business.

If so, it's better to have an IPO.

Then Versace, the question is more interesting.

As one of the most popular luxury brands in recent years, Versace's turnover reached 650 million US dollars in 1993, and its revenue even exceeded that of Bulgari.

For luxury goods companies, this is really amazing.

You know, Bulgari was founded in 1884 and has a history of 110 years. Versace was founded in 1978. Even if Jennie Versace is brilliant, the growth of luxury brands can not avoid enough accumulation.

So what's the problem?

Sophia didn't sell the story in the materials.

Italian mafia.

According to Sofia's investigation, as Simon remembers, the Versace brand is indeed used as a money laundering tool by the powerful Italian mafia.

Ordinary people always feel mysterious and high-end about money laundering. The actual operation process is very simple.

Take luxury money laundering.

The Gang first signed a loan contract with a luxury goods company and lent a large amount of money to each other out of thin air.

The money certainly doesn't exist.

Then, the gangs use their own power to buy a large number of goods from the stores of luxury companies and contribute revenue to luxury brands. The brands return the revenue to each other in the form of debt repayment, and the original black money immediately becomes legal income.

In order to save costs, luxury goods purchased can even be recycled.

However, in general, the cost of money laundering is often very high.

If someone can create a money laundering model with a cost of less than 30%, he will definitely be regarded as the guest of honor by the global gangs. Actually, black money turns into legal income, but I'm afraid taxes are no less than 30%, and the total cost of money laundering is often more than 50%.

The reason why many Western governments maintain different degrees of tolerance towards gangs lies in the fact that these gangs are also contributing a large amount of taxes to governments.

After Jennie Versace was shot, it was reported that the Mafia tried to steal Versace's ashes and extort debts from the family.

Versace's business is so good that it has a huge profit every year. Even if there is a problem with capital turnover, it can easily obtain financing through formal channels. How can it borrow money from the Mafia?

Moreover, at its peak in 1996, Versace's revenue once reached $1.1 billion.

This is even more unusual.

The profit margin of luxury enterprises is very high, and the revenue scale is limited to the market capacity, but it is difficult to expand.

The $1 billion level revenue in the 1990s is absolutely a big Mac in the luxury industry. Is it true that a designer born as an Italian country tailor has such a great charm to create all this?

You know, after Jennie Versace was shot, even 20 years later, Versace brand revived, and the turnover did not exceed 1 billion US dollars. When Versace was acquired by another comprehensive luxury giant in 2017, its annual revenue was only 660 million euros, equivalent to 750 million US dollars.

Moreover, after Versace's death, Versace's company rapidly declined, its revenue and profits plummeted, and once hovered on the verge of bankruptcy, which even could not afford to hire a catwalk model.

What's the problem?

The luxury brand giant, which has achieved a revenue breakthrough of 1 billion US dollars in less than 20 years, should have enough anti risk ability even if the founder dies or the successor fails to succeed.In this case, the rapid decline of Versace, revenue and profits rapidly decline, the reason for which a little bit of a brain people can understand.

Because some of the extra income is gone.

Not only that,

the matter of stealing ashes to press debts is certainly not aimless.

However, the Mafia will certainly not be stupid enough to ”kidnap” Versace's ashes to extort debts. This is obviously just a warning.

What's the warning?

It's very simple. Coercing the dead is not effective.

With the Mafia's terrorist influence in Italy, Simon believes that even if Versace dies, the Versace family will not escape some of its ”debts.”.

Therefore, in order to repay the debt, Versace must draw a large amount of money from the company, which is likely to lead to the exhaustion or even rupture of the capital chain of the enterprise. In addition, the part of revenue originally supported by black money will disappear with the death of Versace, and all kinds of things will make the decline of Versace inevitable.