Chapter 1572 (1/2)
After reading the top ten retail stores, people talked about big business.
After that, Li Dong swept down again. When he saw Baijia, he tapped on the table and said, ”Baijia's business in the mainland is not too much. Most of the business in the mainland is concentrated in South China.
In South China, the revenue of top 100 is RMB 4 billion, which is not low, but it is not too strong.
The real strength of top 100 is still the achievements of Hong Kong and Macao. In Hong Kong and Macao, the revenue of top 100 has reached more than 12 billion yuan, and it has a high market share in these places.
In such a large market in the mainland, there are not many retail enterprises with more than 10 billion revenue, let alone in Hong Kong and Macao.
Therefore, our merger and acquisition of top 100 is not focused on its business in the mainland, but on Hong Kong and Macao.
However, he Huang is also a rich man. Even if an agreement can be reached, the price offered by the other party will not be too low.
At the same time that we have issued a merger and acquisition offer to top 100, there are also other enterprises, including many international retail groups, who also hope to enter Hong Kong and Macao.
The competition in China's mainland market is too fierce, but Hong Kong and Macao are OK.
And as a bridgehead, you can also spy on the mainland market and enter the interior of China at any time.
Last night, although the price of the other party was very low, I couldn't call the other party for a long time.
3.5 billion US dollars, about 24 billion RMB quotation... ”
On hearing this, Chen Lang immediately frowned: ”this price is too high!
At the beginning, Carrefour's business was much stronger than top 100, and its revenue even reached twice that of the other party.
At present, even if the mainland is added to the top 100, the total revenue is only 16 billion yuan.
What's more, Baijia's own properties are very few. Most of them are shopping malls under the yellow flag. The business we acquired this time does not include these commercial real estate projects.
As a department store business, the price is 24 billion. Do you really think our money is not money?
What's more, the profit margin of top 100 is not high, which can reach 6%. According to the revenue of last year, even if the profit is 1 billion yuan.
If you spend 24 billion to acquire each other, the return on investment is only a little more than 4%.
Of course, simply looking at the rate of return on investment is not enough to explain anything. After all, our retail business in Hong Kong and Macao is a blank, which can generate considerable added value for us.
If the rate of return on investment is less than 8%, in fact, it is not worth the loss for us.
About 12 billion M & A of the other party, the price is acceptable, even if it plays an additional role, the added value will not exceed 20%.
In other words, about 14 billion RMB is our highest price.
Now the other side's offer is 24 billion yuan, which is more than 10 billion yuan. Mr. Li, I don't think the other side has any sincerity.
It's very difficult for us to talk about this kind of quotation
Yuan Chengdao also nodded: ”indeed, 24 billion, the best 100 is not worth this price.
Even if it was Guomei, we spent a lot at the beginning, but Guomei was the first retail store in China, with different meanings.
Baijia is not the first in Xiangjiang, let alone the mainland market. It wants 24 billion yuan, and Huang's appetite is frightening.
In the case of commercial M & A, it usually means that the other party doesn't have much sincerity to talk about it and drive away those enterprises that want to participate in the M & A with high price. Mr. Li, the other party should not have considered whether to sell top 100 or not. ”
Others have also said that the price of 24 billion is indeed too high.
Previously, the acquisition of Carrefour only cost more than 10 billion yuan, while Carrefour's revenue is twice that of the other party.
Moreover, both of them do not have too many self owned properties, which is also very important.
However, Carrefour was in danger at that time, and it was greatly excluded in China. In addition, it was suppressed in the mainland from afar. The other party could say that it was selling at a loss. It was cheap from afar.
However, even so, the value of Baijia will not be so high with half of each other's revenue.
After listening to a few words, Li Dong suddenly said, ”if you want to merge big companies now, I mean their retail business. How much money do you think is enough?”
This words a few people's eyes slightly changed.
Chen Lang thought for a while and then said: ”we don't know much about the information of big business, including their profit level, debt ratio, proportion of their own property and other parameters.
Before that, we didn't do much research on big business.
However, as far as I know, the profit margin of big business is not too high. The other side adopts the method of small profit and high sales, which is one of the reasons for their high revenue.
According to the disclosed data, if the revenue of RMB 75 billion, the profit of 6%, plus the proportion of self owned property of about 10%, the debt ratio is less than 20%.
If you want to merge and acquire the retail business of big businesses, it is almost impossible to get below 50 billion. ”As soon as this word comes out, many people have some toothache.
Li Dong also had no choice but to say: ”over 50 billion, is it so high? Guomei probably spent so much money... ”
The situation is different.
At the beginning, Guomei was in crisis and was taken advantage of in the distance.
As a matter of fact, not only Gome and Carrefour are far away, but they are generally taking advantage of the people's danger. All the enterprises acquired from afar do not offer too high a price.
However, big business is living a good life now. They dominate in the Northeast without any competition.
In this case, if you want to acquire a big business, the cost will not be small.
Moreover, for these retail enterprises, no matter whether they are listed or not, the market value is not enough to represent anything, but the actual value.
Unless you cooperate with the other party, it can produce complementary industrial effects on the other party, and the other party may let you enter the market at a low cost.
But if you just want to merge with each other, you will have to pay a high price.
Li Dong touched his chin, thought for a while and then said, ”according to your standards, the value of big business is as high as 50 billion yuan.
What about Wumei?
You know, Wumart's price was not too high.
At that time, the other party wanted to replace our stores in Beijing and gave 25% equity and 1 billion cash. Wumart's actual price was about 10 billion yuan.
Wumart, together with Jingkelong, has a good revenue this time, reaching 43 billion.... ”
Chen Lang interrupted: ”Mr. Li, this is not the same.
Moreover, Wumart's debt ratio is not low. At the beginning, because of too much debt, the bank refused to lend, and Wumart gave up the era of merger and acquisition, and we seized the opportunity.
However, although we haven't done any research, it is definitely much better than Wumart.
What's more, Wumart's profit margin is not high. Big merchants dominate in Northeast China, while Wumart needs fierce competition in Beijing.
What's more, at that time, we did not have to pay for the replacement, and the other party could reach an alliance with the distant place, which gave that price.
But if you want to buy the other party, that's not the case.
Simply want to collect shopping beauty, there is no more than 15 billion funds, there is no hope.
This is still based on the other party's willingness. If the negotiation fails, the price will be 20 billion, and Wumart will not allow it to be normal.
In short, if you want to make a forced acquisition by capital, you will definitely spend more money.
The group needs at least 70 billion capital to complete the acquisition and dominate the northern region.
The premise is that a wholly-owned acquisition, if it is only a simple equity investment, will cost much less. Equity and acquisition are not the same concept... ”
As the former king of M & A, Chen Lang has acquired many enterprises in Huarun, especially Suguo, which makes Huarun rise in retail business, which is the existence that can not be ignored in Huarun retail industry.
Even if the materials are not accurate and the evaluation may not be very good, as long as the actual situation of the other party is similar to his budget, the price should not be too much different.
70 billion, which is the price of opening up the northern market from afar.
What's more, it has invested in the north from afar before, as well as Carrefour's investment in the north when it acquired Carrefour.
In the end, if we want to finish the layout of the northern market alone and be absolutely the first, it will cost more than 100 billion yuan.
Li Dong has a slight headache. He hasn't made any international expansion. He doesn't want to merge several major retail groups that have been the target before.
A big business and Wumart alone will cost 70 billion yuan, which is still the best situation. If you want to complete your plan, you can't beat 300 billion yuan.
Seeing Li Dong pondering, Chen Lang couldn't help saying, ”Mr. Li, you don't really want to talk about M & A with the other party, do you?
In fact, in my opinion, it is not very cost-effective to merge these enterprises now.
Our business has been spread very widely. If we conduct M & A as a whole, many resources overlap.
And split merger and acquisition, even if these enterprises want to sell, I am afraid they will not agree.
When we merged Carrefour, our resources overlapped a lot and closed some stores.
But at that time, Carrefour's price was not high, we could accept it.
Now big business is not the same as Wumart. We still take the initiative to propose a merger and acquisition plan, and we need to bear the waste of resources. ”
Li Dong interrupted: ”let's not talk about this. If, I say, if we complete the acquisition of Baijia, Dashang and Wumart, we will have a perfect layout in North China, Northeast China, South China, including northwest China.
In Central China, East China and southwest China, we have done very well. If the layout of the other four regions is perfect, we will be invincible in China.
No, we 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 said with a wry smile: ”the prerequisite for an invincible player in performance is to successfully complete the integration.
Nothing else, at least department store business, no one can surpass us.We can acquire these four companies, with a capital of at least 100-120 billion.
This is even more than the total value of our current retail group!