The first thod would be through corporate espionage.
But without being one of Xu Jingsong’s trusted insiders, how could anyone know such secrets?
The second possibility was that the other party had conducted a thorough investigation of the Xu Group, concluding that the "car" they were willing to abandon to save the "bishop" must definitely be Changqing Biological?
What kind of powerful data analysis team would it take to make such an accurate prediction?
Without a hint of a sound, Haitang exchanged a glance with Gao Yuan, both spotting a trace of shock in each other’s eyes.
They wanted Changqing Biological, and Xu Jingsong was even compatibly ready to hand it over...
It was as if they were toying with the Xu Group in the palm of their hands.
This organization... was it so terrifying?
Lin Haitang and Gao Yuan could never have imagined that such a coincidence was actually a complicated question of "which ca first, the chicken or the egg".
It began with Xu Jingsong abandoning "Changqing Biological", which was then noticed by "ng Lang A", who alerted "ng Lang BCD" that this company was exactly what was needed to save them, eventually leading "ng Lang D" to instruct Gao Yuan to secure "Changqing Biological".
So, was it Gao Yuan who was interested in Changqing Biological first, or was it Xu Jingsong who abandoned it first?
This was entirely a "which ca first, the chicken or the egg" situation.
Lin Haitang picked up the agreent and began to read, occasionally whispering to exchange opinions with Gao Yuan.
The gist of the agreent was simple: transfer 75% ownership of Changqing Biological to Gao Yuan, provided that she gave up all rights to property division in the divorce.
"Mr. Xu, do you think 75% of Changqing Biological’s shares are worth 3.5 billion?" Gao Yuan asked mockingly, tossing the transfer agreent back in front of Xu Jingsong.
Upon hearing this, Cui Jizhong imdiately produced another docunt.
"Ladies, this is Changqing Biological’s financial analysis report from last year; in 2017, Changqing Biological had a revenue of 258 million and a total profit of 70 million, with a gross sales profit margin exceeding 30%.
Currently, Changqing Biological’s estimated market value is 4.85 billion, making 75% of the shares worth over 3.6 billion."
"Heh!" Gao Yuan did not even look at it.
"Estimated market value? Has it gone public?"
"That... not yet," Cui Jizhong awkwardly chuckled.
"So, who assessed your market value?"
"We’ve invited a professional assessnt agency..."
Gao Yuan cut him off, "Professional? It isn’t one of the Xu family’s own assessnt agencies, is it?"
"A company with an annual profit of 70 million, based on a price-to-earnings ratio of around 20 tis for unlisted companies, would have a general valuation of about 1.4 billion.
Even using the average price-to-earnings ratio of about 70 tis for the listed dical services sector in 2017, it would be valued at no more than 4.9 billion.
So, how did you calculate a market value of 4.85 billion?
Are you trying to suggest that the value of this company is already comparable to those of listed companies?
Plus, as I understand, the dical industry’s average gross profit margin in the past two years has been close to 50%, so a company with only a 30% gross sales profit margin indicates that its product’s added value is far below the industry average.
After deducting sales and administrative expenses, I’m very skeptical about how much their net profit margin actually is?
Forget about comparing to listed companies; I’m not even sure if it can survive for a few more years.
Total profit can be influenced by many factors, such as additional inco, or the liquidation of current and fixed assets.
But if a company’s products are uncompetitive in the market, how much market value can it be expected to have?"
Her statent left Xu Jingsong and Cui Jizhong speechless across the table.
Even Lin Haitang gave Gao Yuan a surprised glance.
Was this still a housewife?
"A company’s value cannot be simply calculated based on the price-to-earnings ratio; profit margins are subject to normal market demand fluctuations..." Cui Jizhong persisted stubbornly.
Gao Yuan’s analysis was not wrong, as strategic mistakes had caused Changqing Biological’s product competitiveness to decline year by year.
Being a wholly-owned subsidiary of the Xu Group, the group’s senior executives considered it a "chicken rib"—tasteless to eat, but a pity to discard.
Even last year’s profit of 70 million contained quite a bit of padding to make the figures look better for a speedy disposal.
Indeed, Changqing Biological was an "inferior asset" that they had already planned to sell off.
It just coincided with Xu Jingsong’s divorce, so the chairman, Xu Bonian, tacitly approved Jingsong to use so of the company’s shares to get rid of Gao Yuan.
The plan was well thought out: replace the opposing lawyer with an insider, overestimate the value of Changqing Biological as much as possible, and sway Gao Yuan’s judgnt.
Then, with leverage over Gao Yuan, force her to make certain concessions.
If all went smoothly, not even 75% of the high equity split would be needed.
Nobody expected that not one but two plans would inexplicably fail and backfire.
What puzzled Jingsong even more was why the other party seed to have done market research in advance, able to accurately discuss many figures without even looking at them?
He knew she liked to read and had a background in finance, but it didn’t make sense for her to be so familiar with the dical sector, did it?
"Enough! How this company fares, your willingness to use it as a bargaining chip is enough for to guess, and if you can’t even make the financial report look good, the internal situation is probably worse, right?
Moreover, I’ve already said, ’Those not of our path do not conspire with us!’
I will not get involved with any company that the Xu Group holds shares in! Take this agreent away, I do not accept it!" Gao Yuan said coldly.
The art of negotiation is to find the opponent’s needs and then conceal your own...
Reviews
All reviews (0)