My 1999

As a native of Qilu Province, he certainly knows Changyu Wine.

It is considered the number one brand in the domestic wine field.

The petty bourgeoisie of later generations like to show off their boring tastes with wine and Western food.

This is a good investment target.

"anything else?"

Jiang Xiaoyang nodded, "Nanfu Battery is currently the number one alkaline battery manufacturer in China and the fifth largest alkaline battery manufacturer in the world. Nanfu Battery holds 28.5% of the shares, while Morgan Stanley and Singapore and Dutch banks hold 71.5%. .

It is not difficult to acquire the shares of an investment bank as long as the most sufficient funds are provided. As for the equity of Nanfu Battery itself, it is even easier to acquire. "

Xu Liang nodded in agreement.

He happened to know something about Nanfu Batteries.

In the last life, Nanfu Battery was acquired by Morgan Stanley and others. They originally planned to list Nanfu Battery in the United States to make huge profits, but domestic regulations hindered the approval.

In the end, investment banks such as Morgan Stanley had no choice but to sell Nanfu to Gillette. The purchase price was US$42 million, and the company sold it for US$100 million, making a profit of US$58 million when it was resold.

In this way, Nanfu changed from a giant in China's battery production industry to a subsidiary of a competitor.

And this competitor is still his loser.

Gillette's Duracell battery has been in the Chinese market for ten years, but it has never been able to break into the market, and its market share is less than 1/10 of Nanfu's.

The acquisition of Nanfu not only eliminated its largest competitor.

Moreover, it also obtained a battery manufacturer with an annual profit of US$8 million and more than 3 million sales points. More importantly, it obtained most of the Chinese market.

Originally, Nanfu's high-quality alkaline batteries had entered the international market, and it was a good time to develop overseas. However, in order to avoid competing for market share with the parent company, Nanfu had to hurriedly retreat.

Unable to compete head-on with Duracell, half of Nanfu's production capacity is now idle.

A company that originally had a great future was largely ruined.

After seeing Nanfu's information, Xu Liang decided to buy it almost instantly.

Nanfu occupies an absolute dominant position in the market segment, and its brand influence is still deeply rooted in the hearts of the people even before its rebirth.

Absolutely a good company.

Although he already had an acquisition target, Xu Liang still looked at the last target.

"Suguo Supermarket?"

"This is not cheap."

Because Yihaodian began to transform into B2C, he also read a lot of information on domestic retail companies.

Suguo now has nearly 700 stores and dominates Jiangsu Province. Its business covers Anhui, Henan and Qilu provinces, and it is the tenth largest retail enterprise in the country.

If you want to fully acquire it, you will need at least one billion Huaxia coins.

Moreover, people may not sell it.

Xu Liang has little interest in supermarkets. Without them, profits would be too low.

Take Suguo as an example. By the end of 2001, it had 670 stores, including 220 directly operated stores and 450 franchise stores. It achieved sales of 5.2 billion yuan, of which directly operated stores sold 2.54 billion yuan, with a profit of only 62.15 million yuan. Franchise stores Sales were 2.7 billion yuan and profit was even less, only 47 million yuan.

This interest rate is too low.

Of course, this is also related to Suguo's expansion too fast and too many loans.

In February 1999, there were only 100 stores. By the end of 2001, there were 670 stores.

The number of stores increased by 200 a year. Although most of them are franchised convenience stores, this speed is too amazing.

Therefore, Suguo's debt ratio is very high. If it weren't for the rapid economic development in China and the retail industry's rush to gain land, they would never have developed so fast.

After reading the five targets, Xu Liang turned to look at Jiang Xiaoyang.

"Which target do you like?"

"Suguo Supermarket."

Jiang Xiaoyang did not hesitate.

"Why?"

Xu Liang was a little surprised.

"There are two models of corporate mergers and acquisitions. One is KKR, which selects those with relatively strong and stable cash flow generation capabilities; corporate management managers have longer working experience in corporate management positions and have rich experience; and have greater cost reductions. , potential space and ability to increase operating profits; corporate debt ratio is low.

The other type is Blackstone and 3G Capital, which specialize in investing in specific industries. They use their rich industry management experience to reverse the decline of enterprises, and through continuous mergers and acquisitions and expansion, they become industry hegemons and gain scale advantages.

Of the two modes, I prefer the second. "

Xu Liang nodded. Both modes have their own advantages and disadvantages.

KKR's model is basically a one-stop deal, and because there is no need to participate in corporate management, there are not too many people in the company, and administrative costs are very low.

KKR manages an asset pool of tens of billions of dollars, and the entire company has only 6 general partners and 11 professional investment partners, plus a staff team of 47 people.

Then there are the models of 3G and Blackstone, investing in one or several industries.

Once you understand the operating rules of an industry and turn it around, you can apply these experiences to the next M\u0026A company.

Then copy, copy, and copy again until you become one of the top few in the industry, preferably number one.

The valuation and profits earned by a giant company after its listing far exceed that of dozens of small and medium-sized enterprises.

Jiang Xiaoyang continued: "Compared with other targets, the retail industry is broad enough and influential enough. Moreover, the domestic retail industry is basically in a state of fragmentation. There is no super retail across the country like Wal-Mart and Costco." Giants, this is our chance.”

Xu Liang's eyes were filled with deep thought, Jiang Xiaoyang's words were correct.

Although there are strong players like Lianhua and Hualian in the domestic retail industry, both of them have a large number of department stores and retail stores and can only be regarded as regional giants.

"...Moreover, isn't your No. 1 store doing B2C? If you can acquire Suguo, you don't have to invest in building a logistics center.

Relying on Suguo's logistics and distribution system, it will greatly boost the development of No. 1 Store, and its economies of scope and economies of scale will be greatly improved. "

Hearing this, Xu Liang, who originally didn't care much about Su Guo, was also a little moved.

With the knowledge from his previous life, he knew that if he wanted to do a good job in B2C business, he must work hard on logistics and distribution.

JD.com has JD.com Express, and Alibaba has Rookie Wraps.

And the integration of online and offline will also be a trend in the future.

After pondering for a long time, Xu Liang suppressed the impulse in his heart.

"Your idea is good, but if you want to realize your plan, you must raise a large amount of funds. The domestic financial market and financing environment are difficult to provide us with so much funds.

As for foreign countries, retail is not a lucrative industry. "

There is another reason why he is unwilling to do offline business. Under the impact of online, the offline retail industry will have even thinner profits. In ten years, it will be good to have 7%.

As for ‘No. 1 Store’, his original plan was to only be an online channel for the distribution of peripheral products, but he did not expect that as the company developed, it would expand to B2C.

Even now, he does not regard B2C as Hongmeng’s main business.

Instead, they are thinking about using it as a bargaining chip in exchange for equity in JD.com or Alibaba in the future.

"With your investment ability, you can make more money in the future." Jiang Xiaoyang said.

Xu Liang shook his head, "I can indeed make a lot of money, and I can also guide Hanhua to make money, but I will not invest money in Hanhua. This is the principle of separating public and private matters. Moreover, Hongmeng has never planned to make e-commerce our main business. business."

Jiang Xiaoyang frowned and said, "Are you planning to sell the No. 1 store?"

Xu Liang nodded, "I have this plan, but now is not the time."

The more funds you have in hand, the more you need to be calm; the better the company develops, the more you need to be cautious.

Blind expansion often ends up losing focus and forgetting the original intention. In the end, like Yahoo, it gets lost in numerous businesses and falls short of success.

Therefore, his plan for Hongmeng has never changed. There are only two core businesses, pan-entertainment and Internet search.

In the future, big data and cloud computing will also be involved, as well as mobile operating systems.

But never invest too much in e-commerce.

By the way, it needs to be said that although Xu Liang acquired Sina, the latter is not Hongmeng’s core business.

Of course, whether No. 1 Store is really sold depends on the situation.

Independent financing and listing will also be a way in the future.

Jiang Xiaoyang sighed with some disappointment. Without the No. 1 store, the value of Suguo Supermarket would not be as great as previously thought.

But she also respects Xu Liang's decision.

"So, the KKR model will be the route for Hanhua's M\u0026A in the future?"

Xu Liang said with a smile: “When KKR also spent tens of billions of dollars to acquire Nabisco, Blackstone did not stick to the real estate industry, so there was no need to set rules for itself in advance.

It changes with the times and with the situation.

As long as it is a good company, if mergers and acquisitions can make the good company better, we can do it.

But this time, Suguo was indeed not the best choice. "

Jiang Xiaoyang nodded, "So, which of the remaining four targets do you like?"

"Nanfu Battery, as the dominant player in the domestic alkaline battery field, has not been listed on the market and has the highest value. Although Changyu is also good, Changyu's domestic market is still too narrow at this stage." Xu Liangdao.

It is impossible for him to spend ten years with a winery growing, the return is too low.

Jiang Xiaoyang nodded and said: "How many shares will be given to reward the management?"

"10%, less will have no effect, more will harm our interests. ...The main task of Phoenix China Fund in the first half of this year is the acquisition and integration of Nanfu Battery.

If there are no other better targets in the second half of the year, just acquire Suguo. "

Jiang Xiaoyang was stunned, "Didn't you refuse?"

"What I reject is your plan to invest heavily in the supermarket industry and expand in a big way. I didn't say not to invest in Suguo. This is a good company, and Ma Jialiang is also a strong man. If we can really buy it, run it and go public, we will definitely make a lot of money." Pen.

Of course, if you can raise more funds for Phoenix China Fund, it's up to you if you want to make mergers and acquisitions in the supermarket industry. "

Jiang Xiaoyang couldn't help but give him a look.

"You are responsible for the investment direction of Phoenix China Fund, so how come you are putting all the blame on me?"

"Eating the emperor's salary and being loyal to the emperor are the things that make me your boss now." Xu Liang said with a smile.