"Yida, your career focus should be more on companies such as Ruixiang and Huimin Travel.

The pet market is dead, and at most a company with a value of 10 billion dollars is born. ”

Zhang Sanshi continued to persuade Zhang Yida, "A person's energy is always limited, and you should put your limited energy on things that are more meaningful. ”

"Then we will make a three-year contract, and after three years, the two sides will merge, and the share will depend on the pet industry assets controlled by both parties, as well as the valuation of the company. ”

Zhang Yida and Zhang Sanshi are both very controlling, and Zhang Yida couldn't convince the latter, so he came up with a new plan.

"Yida, are you sure?"

Zhang Sanshi felt that this plan was obviously superior to his own side. He doesn't believe that Ruixiang or Petra.com will integrate the industry faster than Gaoling Capital.

Because Gaoling Capital specializes in PE, it has also prepared a pet industry investment and M&A fund of more than $1 billion internally.

Although Ruixiang Phase III Industrial Fund raised $2.5 billion, it was only $200 million or $300 million that could be invested in the pet industry.

Compared with funds, Ruixiang is not comparable to Gaoling.

As for the professionalism of the pet market, Peter.com is a professional website, but Gaoling also employs experts and scholars in the field of pet industry.

"Sure!"

Zhang Yida really wants to "gamble" with Zhang Sanshi to see who has a better investment vision between himself and Zhang Sanshi.

"Alright, then we can get started. Not limited to pet food, pet e-commerce, hospitals, any pet-related industries can be counted.

The start time is June '16 and the deadline is June '19. As soon as the three-year period expires, we will ask a third-party agency to do an asset appraisal. ”

After speaking, Zhang Sanshi looked at Zhang Yida and waited for his reply.

"No problem, that's it!"

Zhang Sanshi was also interested, and said with a smile: "When the time comes, you can't regret losing!"

"It's okay to sign an agreement. ”

Zhang Sanshi waved his hand, "That's not necessary." Your character is still trustworthy. ”

"By the way, we also need to increase the cap, and the total investment will not exceed $1 billion in three years. ”

Zhang Yida remembered that there was such a loophole, if it was almost a three-year contract, the assets of Pete would exceed the pet industry controlled by Gao Ling.

At this time, Gao Ling will throw billions of dollars at you to buy a bunch of pet companies to recharge, and then Pete will not lose.

"Don't worry! Gaoling won't be so tasteless. If we were to invest $1 billion and lose to Pate.com, that would only show a problem. ”

Zhang Sanshi added: "It shows that Petra.com has a higher utilization rate of funds and is more capable of capital operation. In this case, we abdicate and make way for the virtuous. ”

"Okay, then it's a deal!"

Zhang Yida clearly remembers that in his previous life, Gaoling Capital acquired and integrated 700 pet hospitals across the country in three years, and then merged more than 400 pet hospitals of Ruipeng Group, directly expanding into a "pet medical aircraft carrier" with thousands of national chain pet hospitals.

This acquisition battle is really a bit scary. Being rich is so capricious.

This kind of acquisition, even if there is a premium, is based on China's fast-growing pet market.

For Peite.com, the competitor does not come from online, but from thousands of pet hospitals under the Gaoling Group.

Just like Ahri will kill offline retail, offline pet hospitals will kill online Pete.com.

In addition to treating cats and dogs, these pet hospitals also sell all kinds of cat food, dog food, and pet supplies.

declined Zhang Sanshi's invitation to luncheon, Zhang Yida came to Peter.com Company, and also called Ruixiang's Lan Lan.

"What, Mr. Zhang, you ...... You and Zhang Sanshi have a three-year merger agreement?"

After Lu Fenghai listened to Zhang Yida finish talking about the series of conversations he and Zhang Sanshi met today, his expression was very solemn, and he looked preoccupied.

"Yes, I'll come back and discuss it with you. ”

Zhang Yida only remembered that he forgot to discuss it with Lu Fenghai, who was also the co-founder of the company.

"Why merge with them? It's a big deal that they have a high market share, we have a small market share, and it's not like we can't survive. ”

Zhang Yida shook his head, "Your thinking is wrong. Their purpose is to dominate the entire market.

You open a pet hospital in a community in Rongcheng, and Gaoling also opens a pet hospital next to you, and the medical expenses are cheaper than yours. ”

"So what's the matter? It's good to fight a price war. Lu Fenghai was still a little unconvinced.

"For example, out of 1,000 hospitals, 500 are fighting a price war with us, and the other 500 are making money.

We lost a lot of money, and our revenue was balanced. We collapsed first. That's the benefit of being large. ”

Lu Fenghai was still a little unconvinced, "What if we have more hospitals?"

"That's the best! We'll annex them. ”

Zhang Yida explained: "Gao Ling is determined to enter this industry, and sooner or later we will have a conflict with them.

According to the nature of the merger of these unicorn companies, if we want to enter a healthy and profitable state, we can only merge with them. ”

"Gaoling has prepared a $1 billion pet investment fund, how many do we have?"

Zhang Yida looked at Lan Lan, who smiled bitterly: "Mr. Zhang, your spending speed is really first-class."

We spent $500 million on the investment and a little more than $300 million on the acquisition and capital injection of Station B.

Say, how much should we vote on the Pet.com side?"

Zhang Yida waved his hand, "Let's not talk about this first." Let's talk about how to defeat Gaoling first!"

Turning his head to look at Lu Fenghai, "Fenghai, tell me what you think!"

"Invest, build hospitals, buy hospitals. Or buy a pet food factory.

Anyway, as quickly as possible, the assets or valuations of Petra.com will be inflated. ”

Lan Lan objected, "With all due respect, blind and disorderly expansion is a big fight. ”

Zhang Yida commented: "Both of you are right, both to expand and maintain internal stability. So, the next task is heavy and arduous!"

"The pet market, the two most important segments, pet food accounts for about 40% of the total consumption scale of the industry, and pet medical care occupies 25% of the market size.

We have Dogford for pet food, and we have Pate Pet Hospital for pet medicine.

Therefore, we will continue to invest money and resources in these two brands.

On Dogfud's side, I'm going to convince my dad to let Dogford join us. ”

Zhang Yida paused, "This refers to the domestic market.

The largest foreign pet market is the United States, with 184 million pets and an industry size of $66.7 billion, more than three times the Chinese market.

So, I decided to invest in a pet company in the U.S. under the name of Petra.com. ”

"Mr. Zhang, the pet market in the United States is relatively mature, and the chances of high-quality startups are not very high, right?"

Zhang Yida looked at Lan Lan, "The truth is exactly the opposite of what you said, because its market is large, there are more opportunities." ”

"The penetration rate of pets in American families is as high as 68%, and the average family has 1.9 cats or 1.6 dogs.

You know why there are so many zombie dogs in American zombie movies! Because they have dogs, cats are as common as poultry in rural families in our country. ”

Lan Lan was surprised when she heard this, she had never been engaged in the pet-related industry, and she really didn't know about this relevant data.

The number of cats and dogs reported by Zhang Yida is more than half of the population of the United States.

"During the 2008 financial crisis, despite the downturn in the U.S. economy, the pet industry market growth rate was still ahead of other retail industries.

Any idea why?"

Zhang Yida explained with a smile: "Because Lao Mei's concept of pets as family members has made pet-related products a "necessity".

Even in times of economic downturn, pet owners are more willing to cut back on other personal expenses to ensure the life of their pets.

This kind of adhesion in the pet emotional economy enables the pet industry to remain relatively strong in the economic downturn.

In the United States, the pet-related industry is a "safe haven industry", which is as strong as gold, and there is no need to think about unemployment. ”

"It's really a treasure for pets, I think there is also this trend in our country, some young people are better to cats and dogs than to their parents. Lan Lan commented sharply.

"Haha," Lu Fenghai said with a smile, "I think this has something to do with the increasing pressure of modern society, and I pin my emotions on pets." ”

"Not exactly," Zhang Yida put forward his own opinion, "It has more to do with family institutions, the aging population, singleness and dink, mainly these three reasons." ”

"The pet food industry is currently an oligopoly market pattern.

According to Euromonitor International, Nestlé and Mars accounted for half of the U.S. pet food market in 2015.

Among them, Nestle accounts for 30%, Mars accounts for 20%, and the top five companies account for 72%.

From the perspective of the global market structure, Mars ranks first, accounting for 25%, followed by Nestle with a share of 22%, and the top five companies with a total share of 58%.

Therefore, pet food is not even worth looking at, it is all large companies and cannot afford to invest. ”

Lan Lan was aroused by Zhang Yida's interest in investing in the pet market, and asked: "What about pet medical care?"

"There are 26,000 pet hospitals in the United States, and the top four hospital chains range from a few hundred to more than a thousand hospitals.

And they are all large hospitals, which together account for 40% of the industry. ”

"Then the market pattern has been formed, what else can we invest in?" Lan Lan heard that pet medical care was no longer playful, and he instantly lost interest in investing.

"We invest in pet e-commerce, and there are still some opportunities in this segment. ”

"Peer from Pate.com?" Lan Lan asked.

"Yes, I've found all the targets, and there is an American pet e-commerce company Chewy, which I think is pretty good.

VetFirstChoice, an online pharmacy and home delivery service for veterinarians, can also be invested. ”

Zhang Yida was engaged in this business in his previous life, and he is very clear about these two companies listed in 19 years, the former has a market value of up to 14 billion US dollars, and the latter has 4.5 billion US dollars.

Ruixiang invested in Petra.com, and Peite.com took the money to invest in these two companies and brought its own valuation up.

Zhang Yida doesn't believe it, compared to investment, can he still lose to Gaoling Capital?

However, both companies are valued at a higher level than Petra.com at this time. This round of financing is not large, and it really can't afford to invest in these two companies.

"Okay, I'll look for information about these two companies later in the evening. ”

Lan Lan asked again: "Then it's time to talk about the valuation and financing of Petra.com, right?"

Zhang Yida Nunu mouthed, "Feng Hai, you report the financial data and operational data to Mr. Lan." ”