Cost is actually very strange, any product, if only the cost of raw materials is calculated, it does not account for much of a proportion.

Take drugs as an example, the development of a new drug can easily cost hundreds of millions of dollars, but the cost of raw materials for these drugs is not very high.

But if someone else uses real money to develop a drug, the cost will definitely have to be recovered, so any new drug will definitely be very expensive when it first comes to market.

Just like when Flying Leopard Paint quotes BMW cars, it must consider a part of the research and development cost.

Zhang Xiaofan's company's R&D cost is very low, because Zhang Xiaofan will provide the formula, even if he does not provide the formula, he will specify the direction, and even a certain raw material will be specified.

This has resulted in the R&D cost of Zhimei new materials, which is much lower than that of other manufacturers.

Therefore, it is understandable that the price of Flying Leopard Paint is so high, which is understood by others, but whether it will use your product is a question.

BMW had no doubt and directly rejected the supply of Flying Leopard Coating, after all, the price is so high, and the price of Zhimei New Materials is only two-thirds of that of Flying Leopard Coating.

But Zhang Xiaofan still feels that he has a bad conscience.

Even if the tariffs are added to the tariffs, it is much cheaper than the flying leopard coating, and BMW is not stupid, so if the quality of the two is the same, who will choose the expensive one, not to mention that the cheap quality is a little better, especially the never-waxing technology.

Zhang Xiaofan, who returned to China, got a very surprising news on the same day.

"Mr. Zhang, Flying Leopard Paint wants to acquire our company. ”

"Acquisition?"

"Yes!"

"Ignore it!"

If you can't do it, you want to buy it, which is also a common face of large companies.

For many capital predators, once they encounter a manufacturer that may threaten them in the future, the first thing they think of is to imitate their products.

This kind of thing is very, very common in China, just like many domestic capital giants are now developed by constantly imitating others and stepping on the blood of others step by step.

Zhang Xiaofan is not surprised by this, but Zhang Xiaofan is not short of money, with his current speed of making money, he thinks that the money for a lifetime will definitely not be used up.

"That's it, contact you or go to contact, some things don't be too straightforward.

After all, no matter what, they are still very famous in the world paint industry, maybe their status is high, we are unattainable.

When the time comes, there will be any moths, and if you can delay it for a while, you can delay it for a while. ”

Zhang Xiaofan thought about it for a while, and was afraid that the flying leopard paint was playing some conspiracy behind his back, so he became addicted to it for a while, and he could delay it for a while.

Every day that is delayed, Zhimei New Materials will be stronger.

"Okay, I know how to do it. ”

This time, the senior management of Flying Leopard Paint, who was sent to China, was called Karis.

This Kakaris is not young anymore, and it is estimated that such a thing as the acquisition should have been done many times.

Some time ago, when I first came, I contacted the current general manager of Zhimei New Materials.

Karis is very strange about the management structure of Zhimei New Materials, and the data obtained from their group's investigation of Zhimei New Materials.

This company ranks first in China in annual sales of powder coatings, and even exceeds the sum of the second, third and fourth places.

But such a company, logically speaking, should be very famous in the world, but to be honest, Karis had never heard of such a company before he came.

If you say that they are low-key, ranking first in sales in an industry, you shouldn't say that they are low-key.

Such a powder coating company with sales of more than billions a year has a chairman and a general manager.

After that, he never heard of any other sensible or anything like that, and he wondered why there were so few senior leaders in such a company.

Although he was very confused, he did not bring it up, because the fewer the senior management, the more conducive it is for him to buy the company.

After the first contact, the other party didn't even give a vague signal.

So a few days later, he contacted again.

This time it was also a tentative contact.

So the occasion chosen was not very formal, it was a café that looked inconspicuous.

"Mr. Chen, I don't know if you have conveyed our company's intention to the chairman of your company. ”

"Our chairman has no intention of selling. ”

In fact, Chen Ying is also very strange, is it Zhang Xiaofan, or is it the other person in the company who has revealed the intention of selling?

The cash flow of Zhimei New Materials is very rich, and the profits earned a year are also hundreds of millions.

It's such a company with great growth potential, who wants to sell? What's more, you can't quote a single offer.

"We are very sincere, and Flying Leopard Paint is one of the largest paint companies in the world with one of the best technical strengths.

There will be no change in management after our acquisition, and we will leave at least 5% of the shares to the management.

I believe that after we have acquired your company, the combination of our technology and your company's market will definitely make the company go to the next level.

Mr. Chen, I think that Mr. Chen's ability can get at least 2% of the shares, and I hope that Mr. Chen can facilitate this acquisition. ”

What Caris expressed is more obvious, we acquire Zhimei New Materials, and then leave about 5% of the shares for the management, and you Chen Ying get 2% of the dry shares.

"I've communicated it, but our chairman doesn't have any intention of selling. ”

"Our latest valuation of your company is about $800 million, and we are willing to pay a premium to $1 billion for the acquisition. ”

Chen Ying frowned suddenly, this valuation is not low, it seems that they are indeed a little sincere.

The annual profit of Zhimei new materials exceeded 300 million last year, and it will definitely increase more this year.

And the increase is not a little bit, the profit margin of powder coating in the past is about 20% to 50%.

But automotive powder coating, Chen Ying felt that Zhang Xiaofan was too greedy, and the profit margin directly reached 300%, although it was only a gross profit margin, but the net profit was more than 250%.

This profit margin is very terrifying, so terrifying that anyone will be shocked when they hear it.

And the sales volume of automotive powder coatings, you are very, very large, and now basically the powder coatings used by domestic automobile companies in China are provided by Zhimei New Materials, because at present, only Zhimei New Materials in China can produce automotive powder coatings that meet the requirements of automobiles.

This is a monopoly, who makes other powder coating companies unable to produce such coatings?

While profit margins are staggering, automotive companies that use these powder coatings are still reluctant. You have to find the latest chapters by yourself to read books?