Episode 33 VAM 4

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"Since you have come to the company, why don't you tell us about the acquisition plan of 'Tuma' to 'Donkey in the Rivers and Lakes'? Regardless of the final outcome, at least we can know what the estimated value of 'Tuma' is to 'Donkey in the Rivers and Lakes' in the project development plan. โ€

The two sides are here to negotiate, not to debate, so when Haiyan finished speaking, Tao Ye didn't wait for Liu Yang to answer, and put forward the core question very dryly!

Obviously, Liu Yang didn't expect Tao Ye's business negotiations to be this way, and this sudden 'general' did disrupt his rhythm a little, but fortunately, he participated in business negotiations so many times, and he still had no shortage of experience in solving problems, and he still smiled indifferently:

"Mr. Tao is quick to talk, so I won't beat around the bush. The purpose of coming here today is indeed to show you the acquisition conditions given by 'Tuma'.

But before that, I still hope to let the company's development plan explain to everyone present first, after all, it is our common expectation to make the 'donkey in the rivers and lakes' bigger and stronger, and you may wish to see if the future that Topa Group is looking forward to for it is attractive and convincing enough!

Frankly speaking, I am full of respect for the development of Donkey in the Rivers and Lakes from a grassroots start-up to the present. Although everyone is a few years old, after all, they have been young, and I have seen too many similar young people constantly falling and getting up on the road of entrepreneurship.

It is indeed a miracle that the Internet industry can achieve self-financing in just two years, and the prospects are still very good.

But the market still follows the law of the jungle, and although the 'donkey in the rivers and lakes' looks good now, it is still far from enough. Because there is one very obvious shortcoming that you cannot solve at the moment - the lack of strong business alliances!

I took a look at the current structure of the platform, your current profits mainly come from the commission commission of merchant activities, but the cooperative merchants are relatively scattered, and most of them are small and medium-sized enterprises.

Although this kind of merchant operation is flexible and easy to use, if the enterprise wants to become bigger and stronger, it is absolutely not possible to only cooperate with this kind of business.

Moreover, when organizing events and gatherings, there is also a very important issue of safety and legal risks, although you have simply purchased some insurance, but the types of insurance and coverage are not very comprehensive.

After Tuma became the owner of the platform, one of the main operational plans was to find a strategic partner for a large domestic chain leisure catering business. As long as you negotiate a good cooperation with a large group, you can directly promote the event to every city by relying on their chain stores across the country.

And the bigger the business, the easier it is to promote and implement the standardized process of the event, and the better the event experience will be for the participants. After word-of-mouth is established and spread, the number of members will naturally increase exponentially.

Although you can also try this idea, as an innovative small Internet company, what are the chances of success in your cooperation with large chain merchants? To put it mildly, none of you here will have the opportunity to communicate directly with the decision-makers of those companies.

Tuma has been in the tourism market for many years, and has in-depth cooperation with many well-known insurance groups at home and abroad, and the company also has a professional team of lawyers, so if we take over this matter, the possibility of legal disputes on the platform in the future will be much smaller, and even if it does, it will be much easier to solve.

Although now 'donkey in the rivers and lakes' has achieved a balance of payments. But what's the point of a small company breaking even, it's because your own expenses aren't very high.

Moreover, if the balance of income and expenditure becomes the main indicator of the company's operation, then the management of revenue and the control of expenses will be more stringent.

From the perspective of the development of large Internet companies, which company have you seen that makes profits very important in the early stage of development?

I don't mean to deliberately reduce the value of profits, the main reason is that the most important indicators to determine the development of Internet companies are actually market share and customer scale, if the early profit is regarded as an essential component, it is bound to lose a lot of potential merchants and customer base.

You must know that the rise of a new thing needs to cultivate the market. When the market is fully established, and members can also regard participating in activities and gatherings as a habit in life, profits will naturally occur, and under the premise that the base is large enough, the profits will be very considerable.

Depending on the priority of enterprise development, the operation idea and rhythm will be different. The competition of Internet companies is a shark battlefield, and enterprises must not only move, but also move quickly. Grasping the opportunity doesn't mean anything, and being able to stay in the first place and not be caught up is the king.

Manager Yan thinks that you still have a year window to adjust your thinking and layout, and in my opinion, this kind of thinking is very dangerous.

Until now, the development of domestic Internet enterprises has not existed any obvious technical barriers. If a really large enterprise wants to invest in developing a platform like Donkey in the Rivers and Lakes, three months should be almost enough.

Trial-and-error mechanism? With your company's jewels in front, how necessary is trial and error? Change the name and just copy the activity mode.

It's easier to have the right talent, which is not a big deal in a network company with thousands or 10,000 people. If I really have that time, why should I rush into discussing mergers and acquisitions with you? โ€

Obviously, Liu Yang's words have a certain amount of truth, so Jun Mo, who has been quiet, also decided to break the silence and said seriously:

"Mr. Liu, if what you just said is serious, then please allow me to make a mention, at the meeting, don't mention the word merger and acquisition in the future. The demands imposed unilaterally on the other side, no matter how well-founded and generous the conditions, cannot hide the fact that you are coercing us.

I think what you said is reasonable, and because of this, if Tuma wants to participate in this project, it must need our full support, otherwise it will be scattered, and Tuma will lose a lot, and Tuma may not have any benefits to collect.

It is estimated that it is not Mr. Wang's original intention to increase the reputation of a bully, so since it is to discuss the development together, then we will put on a correct posture, "donkey in the rivers and lakes" needs capital to enter, as long as the conditions and requirements given by "Tuma" are not very harsh, I think it is still possible for the two companies to cooperate. โ€

Wang Lei next to him looked at Jun Mo and wanted to say something, but he hesitated for a long time and couldn't open his mouth, so he simply did it and put it into his mouth, anyway, the meaning he wanted to express was basically similar to Jun Mo.

Of course, Jiayi could hear the anger and helplessness in Jun Mo's tone, but even so, it also greatly changed his current expression, although these words sounded a little harsh, but after all, it was still a gesture of discussing things. However, it has only been half a year, and it is already commendable that a person can improve his self-control to such a point.

Looking at Liu Yang's slightly embarrassed face, Jiayi spoke:

"Mr. Liu, Jun Mo's temper is like this, he is used to going straight and straight, and he is not right about things. But his abilities are also good enough to be worthy of this straight temper. More than half a year ago, Yuanfan and I also had a disagreement with him and Wang Lei on the company's development prospects, and now it turns out that we were wrong at that time.

Now that the 'donkey is in the rivers and lakes' has reached an inflection point, everyone has something to say under the premise of restraint, which in itself also represents an attitude to solve problems. So if there's an offense, I'll apologize to him first. โ€

Liu Yang has seen a lot of winds and waves, and the embarrassment just now is just a temporary discomfort, in layman's terms, now that he is indeed smashing the field, it is not easy for others to talk slowly on the table calmly, what is this offense, so he smiled and said:

"Xiao Li, you think too much about this, in fact, I agree with Mr. Jun Mo's statement, although 'Tuma' is to talk about cooperation with sincerity, but after all, the way we take is still a bit of a sword. If you can be honest, it means that the negotiation of this matter has started really well!

The main purpose of Tuma is to be able to cut into this field in a short period of time, and Mr. Wang also wanted to set up a separate business department to carry out similar projects, but now that 'donkeys in the rivers and lakes' has become a climate, it is better to join forces than to compete with one more shว’u.

Today, unlike in the past, the development of 'Donkey in the Rivers and Lakes' has entered the right track, so the conditions we gave have changed significantly from half a year ago. Although you may find it difficult to accept emotionally, I think it is better to mention it first, after all, in such a fierce business competition, a sincere offer is still worth taking. โ€

Since Liu Yang has said everything, Jun Mo doesn't need to be petty, since Tuma has given the conditions for the merger and acquisition, it doesn't hurt to listen to it, so he nodded and motioned for him to continue.

"We learned that recently, 'Donkey in Jianghu' has received an angel investment of 2 million, and the equity has also changed accordingly.

Colleagues from the investment department made a preliminary assessment of the project and concluded that the valuation was high from the perspective of the time, but considering the development momentum later, the investment is more discerning.

Mr. Wang also believes that for the time being, the value assessment of 10 million yuan of 'Donkey in the Jianghu' is more reasonable, so if you agree to fully merge the company into 'Tuma', we can directly buy out everyone's shares at this price.

At the same time, in order to protect the interests of the original investors, Tuma is also willing to acquire the shares they originally invested in at a premium of 1.5!

After the acquisition, Donkey in the Rivers and Lakes can be directly transformed into an independent business unit of Tuma, and the company's employees still perform their own duties, but Tuma will parachute a few management personnel over, and the position of general manager will also be appointed.

This method of operation is relatively simple, of course, if you feel that it is inappropriate, we have prepared another plan for your reference.

This plan is that Tuma will take out 6 million shares in 'Donkey in Jianghu' and become the controlling shareholder of 60% of the company, but the management rights will be completely handed over to you. โ€

As soon as Liu Yang's voice fell, Tao Ye followed up and raised an objection:

"Mr. Liu, you yourself said that the company's valuation of 10 million was a few months ago, and in recent times, whether from the media exposure or the active participation of members, the popularity of 'Donkey in the Jianghu' has been significantly improved, not to mention that we do not agree to sell the company, even if we want to sell, at least there must be a more reasonable price."

Regarding Tao Ye's questioning, Liu Yang had obviously been prepared for a long time, and said without panic at all:

"The valuation of the Internet is all watery to lรกi, although the 2 million of the angel round investment has indeed been paid, but isn't there still 1 million of them used for the previous equity ownership problem?

What's more, when we acquire a company, we pay 100% cash, although the value of the company will increase a lot if we take it as a reference a few months ago. But at that time, the so-called value of 10 million was just your opinion, and who would realize it?

Maybe you're lucky enough to attract some venture capital in the future, but even so, the probability of a significant dilution is still extremely high.

As a start-up company with no background, who can guarantee that it will be able to pass the later A and B rounds...... investment, and even eventual listing.

Therefore, I personally think that from the current point of view, Tuma's offer should still be relatively fair and reasonable. โ€

Since it is a negotiation, it is inevitable to have a positive problem, but when the problem is unfolded, the core members of 'Donkey in the Rivers and Lakes' have collectively fallen into silence.

This kind of question is related to the interests of everyone, and it must be impossible to answer on the spot, so Liu Yang is also very knowledgeable, it is better for him to go back to the hotel today, let everyone discuss it, and the meeting will continue tomorrow.

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