Rebirth 79: I opened a bank in the United States

The Necessity of Chapter 300 Financing

"2800 million?! Cash?"

Carter was a little surprised. On the one hand, he was surprised that his small company was favored by the giant Coca-Cola, and on the other hand, he was surprised by the other party's generosity.

That's right, it's a big deal!

Don't look at the high valuation given by Jim, but the valuation valuation. The name tells you, it's an estimate!is false!

Just as there are a thousand Hamlets in the hearts of a thousand people, the value of HT in the eyes of everyone is different.To be honest, the asset value that no one can deny is actually only 1200 million.
That's right, the 460 million that Jim invested, Carter didn't invest in the company's operations at all.Therefore, the company’s assets have not changed at all. In this case, if it is an all-cash acquisition of US$2800 million, the premium has already reached 130%.
Hardly any company pays such an outrageous premium for another company.Unless, they are also very optimistic about HT, and even expect to use HT to do something.
"That's right, 2800 million in cash. Do you want to chat with the other party?"

"No, tell him directly, we don't sell it!"

Fumbling his chin, Carter thought of two directions.

The first direction is naturally to enter the fast food industry!With PepsiCo taking action in advance, it seemed possible that Coke would fight back and continue the battle between red and blue on another track.But the problem is, in Carter's memory, Coca-Cola never seems to end up entering the fast food industry, but instead has killed all directions in the beverage industry
This second direction and possibility, compared with the first one, is even more mysterious: Could it be that they plan to buy in when the value of HT is not obvious, and then sell it after the value rises?Profit from the difference?

There have been a lot of things going on recently, and Carter seems to have heard someone mention that Pepsi is now very aggressive in grabbing the market!The sales growth rate is also very fast, and it is rapidly occupying Keke’s market share.

Beverage sales are down, profits are down, and cash is in short supply.It seems that it is not unreasonable to earn more cash flow through investment. After all, he himself has done this kind of thing in the past two years, and even now he holds the copyright of DOS, which is up for grabs!
"I'm sorry, Mr. Craig, I think you should have heard just now that we have no idea of ​​selling HT for the time being. No, there is no need to come and talk, we don't even have an idea now, and it is a waste of time for you to come here."

Rejecting Coca-Cola's call, Genus walked back to Carter and made a joke:

"This can't be the credit of Mr. Rogers, can it?"

"Hahaha, of course not. I don't know what Coca-Cola is thinking. Let's talk about it later, let's continue to talk about the question just now. After the underwriter waits for me to go to Yale, I will go to two more and compare them. Just waiting for ours Valuation has gone up, and now the cash flow is stable, and financing is not very urgent.”

New Haven, where Yale University is located, is sandwiched between New York and Boston, the two cities with the most developed capital markets in the United States.Geographically speaking, it is simply a geomantic treasure.

When the time comes, jumping back and forth, swaying from side to side, and negotiating a good price, it shouldn't be a big problem.Unless the capital markets in these two places join forces to suppress their own prices, otherwise.
"Hey Boston! New York has a $2 million valuation, you Boston"

"Hey, New York! Boston has a $2.5 million valuation, you."

Right?

A competitive environment is a good environment~
"You think far enough, have you received the admission notice?"

"Not yet, but don't worry about it. I can't go to Yale. I will look around New York. There are always colleges. I have submitted several letters. If all of them are rejected, then I"

Carter was a little speechless for a moment:
"Then I'll just go to New York to live for a year. Anyway, there is no rush to confirm the underwriter. In the next stage, you will work hard on your side, and cooperate with the lawyer to complete the changes to the company's structure, and organize the signing of the internal agreement that needs to be signed. "

"There is no problem in this regard, you can leave it to me with confidence. But, wouldn't it be good to just leave them alone?"

After hesitating for a while, Jinas decided it was better to tell the truth.

"Although our current cash flow is stable and has been growing, the stock is actually very small. It cost hundreds of thousands of dollars to shoot a commercial, and a lot of money to put it on the TV station. The store opening subsidies we planned before have not It can’t be started, and prices have risen again this year, last year’s 2 subsidy, this year’s at least [-] to [-] is a little bit more attractive, if we want to accelerate expansion.”

"The amount of this subsidy has to be increased, at least [-] yuan, in order to really attract more franchisees to join! Another aspect is their patience"

"Their patience?"

Carter repeated it in doubt, and then quickly understood what the other party meant.

"I understand, it won't be so fast! Competitors in the market have already left the market, and we are the only one at the moment. And if a new opponent enters the game, it will take time. Before new alternative targets appear, we It's the only one!"

"It's definitely not good to drag it on, but in a few months, they won't be so impatient."

It is different from rejecting Coca-Cola's acquisition, or even rejecting it directly when the other party only revealed a little intention.As far as the capital market is concerned, Carter understands that he only has the right to bargain, not the right to refuse!

Even without considering Jim Rogers' income and agreement, just talk about the business model of catering franchise stores.Where is his commercial value?

Carter thinks nothing more than brand value and scale value.Brand value is easy to understand, just like Coke, most consumers only recognize Pepsi and Coke, you can associate it with a certain product just by hearing the name, and don’t buy anything other than it!

But it is obvious that, compared with HT, a company that is still in the product marketing stage, its brand is worthless at all.Even if Carter now replaces Habanero Tacos with Colombian Tacos and Copan Tacos, it will have almost no impact on product sales.

As long as the tacos sold in the store are still cheap, full, and can still provide customers with a variety of recipe choices, its sales will not decline significantly.

Then the second value is the scale value!The value of scale comes from the replicability of its business model and the scale effect it brings.The scale effect is actually very fucking.
To use a vulgar example, even if you sell shit, as long as you can open this shop that forcibly feeds customers to the streets and alleys.Believe me, there will definitely be some curious guys who will walk into the store to see if there is anything special about this Xiang, is there any difference?
For this kind of thing, inspiration is precious, and more unique products are also very important.But what really matters is scale!
You are awesome on a large scale!If you don't scale, you're trash!
And expanding the scale requires money, but the most important thing in the hands of capital is money!

(End of this chapter)