Rebirth of the Capital Legend

After hearing the acquisition prices offered by several other potential acquirers revealed by Isaac, Su Yi and Wang Huaijin were a little surprised.

According to information revealed by Isaac, the other bids did not exceed US$20 billion.

Even Forex Capital, which is trying hard to acquire FXCM International and eliminate its competitor, has proposed an acquisition price of less than US$17 billion, and the conditions proposed by the other party include a cash contribution of less than US$10 billion.

"It seems that the negotiation plan we made earlier is still very reasonable."

After learning about the conditions proposed by several other potential acquirers to FXCM International and the preliminary acquisition plan, a big smile appeared on Wang Huaijin's face, and he had great confidence in tomorrow's negotiations.

"Based on the conditions offered by several other competitors..." Su Yi said, "It can only be said that the collapse of the pound sterling exchange rate caused by the 'British referendum' incident has indeed caused extremely heavy losses to 'FXCM International' and also exposed the company's problems in internal risk control."

"That's for sure." Wang Huaijin nodded.

"Have you compiled the current financial analysis report on FXCM International?" Su Yi paused and asked, "Before we formally negotiate with the shareholders of FXCM International, we must have a clear understanding of its internal financial data!"

Wang Huaijin said: "Based on all the information we can collect, the relevant financial analysis report has been compiled."

As he spoke, Wang Huaijin opened his laptop and presented the relevant data analysis report to Su Yi.

Su Yi took a closer look and finally understood why the proposed acquisition prices offered by several other competitors, or intended acquirers, were far lower than the market valuation of FXCM International.

It turns out that this is a financial analysis report compiled based on internal and external information.

The current financial situation of FXCM International is such that its liabilities are clearly greater than its revenues, and the group's short- to medium-term internal cash flow is already negative.

If emergency external financing is not initiated.

That is to say, FXCM International does not accept acquisition proposals from any party.

Then, within two to three months at most, the company will have to declare official bankruptcy and cease operations.

"This financial situation is worse than we expected." Su Yi said with a smile, "Based on this financial situation, the acquisition price of 15 billion US dollars is likely to be negotiated."

Wang Huaijin nodded and said, "From a financial perspective, FXCM International is indeed on the verge of bankruptcy. However, apart from cash flow and debt issues, the company's asset structure, especially intangible assets, and corporate reputation are still very good."

"But these so-called excellent assets cannot be converted into cash in the short term." Su Yi smiled and said, "No wonder Isabel said that as long as we stabilize FXCM International and delay the acquisition, it will be more beneficial to us."

"Boss Su, do you have a clear plan for tomorrow's negotiations?"

When Wang Huaijin heard Su Yi's words, his eyes lit up and he asked.

Su Yi nodded slightly and said, "During tomorrow's meeting and negotiation, we can talk about the trivial matters first. Don't be too specific about the final acquisition price. As for other acquisition conditions, we can agree to them if we can. At the same time, after proposing to establish the acquisition intention agreement, we need to conduct a comprehensive audit and assessment of FXCM International's asset structure and financial status before we can finally determine the acquisition price. However, we can guarantee that our institution's bid can be 10% higher than the market fair valuation."

"10% higher than the market fair value?" Wang Huaijin was stunned, "Is this... appropriate?" Su Yi said: "As time goes by, the operating conditions of 'FXCM International', as well as the asset and liability conditions, are continuously deteriorating. In other words, as we conduct a comprehensive assessment of its assets, the market fair value of the company is continuously decreasing.

Now, we can also give FXCM International a market acquisition price of nearly US$17 billion.

But one week, two weeks, one month, two months later...

When the internal operating conditions of FXCM International have deteriorated to the point where it can no longer sustain itself, I am afraid that the fair value of the market will be greatly discounted.

Our goal is to acquire FXCM International in full at the lowest cost.

Therefore, it is entirely feasible to delay time by reasonable means."

"But I am worried about one thing." Wang Huaijin said, "We can use reasonable means to delay the signing of the formal acquisition plan and acquire the company 'FXCM International' at a lower cost and with less money. This is naturally feasible, but in this process, as time goes by, when the market fair value of 'FXCM International' decreases, its market competitiveness is also decreasing.

During this period, they will lose a lot of customer groups.

I am afraid that there is also a lot of excellent talent leaving the group.

From the perspective of our long-term interests after the acquisition, this is actually detrimental to our acquisition purpose.”

"Your consideration is reasonable," Su Yi said. "If we want to acquire FXCM International at a lower price, and if we want the acquired FXCM International to not damage its foundation, and to quickly recover to its previous revenue and business peak scale, and quickly get out of the impact of the 'UK referendum black swan', then we must strike a balance.

Let’s put it this way, tomorrow’s negotiation plan will still follow the strategy I just mentioned.

It is just that in the subsequent second and third rounds of negotiations, as well as in the comprehensive assessment of FXCM International's assets, we can properly control the time and pay close attention to the development of FXCM International's internal operating conditions, and at the most appropriate time, sign the final agreement and inject funds to rescue the company. "

"Okay." Wang Huaijin nodded and agreed with Su Yi's opinion.

Then, when the two agree, the entire negotiation team will unify their strategies and voice.

After a night's rest.

The next day, September 7th, Saturday.

Su Yi and his team, together with the shareholders of FXCM International Group and the core senior management members of the group, once again held a preliminary negotiation meeting on acquisition intentions in the conference room of FXCM International's headquarters building.

"Mr. Su, you said yesterday that if we can reach a reasonable agreement, your company will make the acquisition in full cash. I wonder if this plan counts?" After both parties sat down and exchanged a few pleasantries, Stuart, chairman of FXCM International, spoke on behalf of all shareholders and asked, "Also, you said that after the acquisition is successful, we will not make major reforms or adjustments to our group's business structure and internal personnel structure. I wonder if this is what you really mean, Mr. Su?"

Su Yi looked into Stuart's eyes, then glanced at all the FXCM International shareholders in the conference room, and said with a smile: "There is an old saying in China, 'A gentleman's promise is worth more than a thousand pounds.' I promised you these two conditions. If we can eventually reach a suitable acquisition agreement, I will naturally not change it." (End of this chapter)