Chapter 50: Negotiations
Tang Bao and others walked along a corridor of the company, all the way forward.
This time, Tang Bao's purpose was to meet with Angela to negotiate the acquisition of the American Southern Company. At this moment, Angela led him to tour the company, and he was also happy.
Li Zhen experienced this kind of battle for the first time, and followed Tang Bao's side, and did not speak, but listened quietly and carefully. Her family owns a company of considerable size, but it is slightly inferior to the Southern Company of the United States. Tang Bao seemed to be just chatting with Angela, but she knew that maybe in this seemingly ordinary conversation, the ownership of this company would suddenly be finalized.
"It's a great place to work."
Tang Bao looked around and exclaimed, to be honest, compared with the environment here, the office environment of the headquarters of Phoenix Investment Group is simply shabby.
"Employees are more productive in this beautiful and quiet environment." Angela said proudly.
Tang Bao said casually, "To create such an environment, the annual cost will be expensive." β
"Talent is the most valuable asset, in order to retain talent, it is necessary to provide employees with these benefits, which can motivate employees to create more profits for our company." Angela proudly said that the implementation of high welfare policies to employees, and the binding of the interests of employees and the company, is also one of the main achievements of her tenure.
Forehead.
Tang Bao was silent, Angela obviously misunderstood what he meant. Yes, a reasonable employee welfare policy can provide work efficiency; However, excessive welfare will also make employees complacent and inert, and they do not want to make progress. Take the interior decoration of the American Southern Company as an example, it is no longer enough to describe it as luxurious, it is simply luxury, and many of the materials used in the decoration are expensive high-end luxury goods. It is not suitable for ordinary company decoration......
The idea of acquiring Southern Financial Corporation is not only to take over the "7-Eleven" brand, but also to take over everything including other assets, including the old employees of the Southern Company.
"Is there a union in the company?" When taking over a company, it is inevitable to deal with the trade union, and whether a company can operate normally is inseparable from people, so the importance of the trade union organization is highlighted. If you meet a union that understands things, you are lucky, if you meet a three-day two shouts to increase benefits, reduce working hours, and open your mouth and close your mouth to go on strike at the slightest disappointment, it is too late to cry.
"Yes. The leader of the union is Ramsey, who is a very good communicator. Angela said.
Good communication?
I hope so.
Tang Bao hadn't thought about these problems before, but today he visited the headquarters of the Southern Company in the United States and listened to Angela's words, so he had this aspect of consideration.
He didn't want to buy a company and hired a group of "Lafayettes".
Angela is also very exquisite, listening to Tang Bao mention the trade union, immediately realized the other party's concerns, said: "Our company's employee benefits are basically similar to those of peers, including medical insurance, pension insurance, life insurance and disability insurance, reasonable paid holidays, etc. However, there are benefits such as education subsidies, transportation subsidies, free drinks, lunches, and health club membership. β
Tang Bao nodded from time to time. The benefits Angela said are still within the scope of reasonableness and humanity, and there is nothing he can't accept. He is not an unscrupulous bloody capitalist, and he will never be stingy with reasonable welfare incentives for employees, but if someone wants to lie on the company and suck blood, there is no door.
"Well, does Ramsey's union have any other demands?" To put it simply, there is nothing to be dissatisfied with, and what you want the company to give.
"Don't worry, Don, Ramsey is a very sensible person and he is very cooperative with the work of the company." Angela assured with a light smile.
Regarding Tang Bao's worries about the union, Angela couldn't help but look at the Chinese in front of her a few more times. She was surprised that Tang Bao would think about the problem so thoroughly.
However, Ramsey will negotiate wages with the company every year. Don, you have to understand that every union is fighting for higher wages for workers, and that's normal in the United States. β
When the company is doing well and profits are increasing, the union will jump out and demand a large wage increase, but if the profits do not increase, it will also shout for a wage increase because of inflation and other reasons, even during the economic crisis, it still wants to try to maintain high wages and refuses to accept the company's salary cut.
This is a common problem for American businesses.
A large part of the collapse of the American auto industry is due to the high welfare factor of American auto workers.
Other industries are not as obvious as the automotive industry, but there are also quite a few problems.
'I need to talk to Ramsey about ......'
Tang Bao finally did not fully believe Angela's words, and he asked to meet with Ramsey. When buying a company, the attitude of the trade union organization is also a major factor that has to be considered.
"No problem." Angela is refreshing.
The reason why the formal acquisition negotiations have not yet been started is that Tang Bao first understands the other party's trade union organization, and it is also associated with the luxurious decoration of the Southern Company.
Next.
The issue of the trade union was put aside for the time being, and Tang Bao and Angela formally communicated with each other about the acquisition.
"Don, Nick may have explained to you what happened to the company, and I would say that it's a great company even though it's in trouble for a while." Angela Road. Nick quit her job because of the troubles of the Southern Company, and she knew the details clearly, and she couldn't hide anything.
Of course, Tang Bao knows the value of "7-Eleven".
But at this time, he is negotiating an acquisition, and he must be cautious and cautious in his words and deeds, so as not to bring unknown obstacles to the negotiations.
He showed his importance for the Southern Company.
It may become a bargaining chip for Angela to raise the purchase price!
"Ms. Angela, the price we are offering for this acquisition of the Southern Corporation is $365 million, and we are taking on $580 million in debt of the Southern Company." Tang Bao gave his own quotation, which was quoted by him according to the valuation of an extremely professional appraisal company he had entrusted.
"Ah...... Don, are you sure you're not kidding? The Southern Company is a very well-known company, and its '7-Eleven' brand has gained a lot of popularity internationally, and Taiwan, Japan and other regions are authorized by our partners. Angela pretended to be surprised and exclaimed, very dissatisfied with Tang Bao's offer. She thinks that Tang Bao has a company worth more than six billion dollars, is a rich boss, and should not be so stingy.
This is nothing short of an insult to the American Southern corporation!
No matter what he has done in the past, he can't change the fact that it is a dying enterprise that may collapse at any time due to the rupture of the capital chain. Your problems are just too big. β
"We are negotiating with investment institutions ......"
"But no one wants to pay for it, does it?" Tang Bao smiled lightly. Faced with a company that has failed in its diversification expansion, and looking at a company worth less than a billion dollars with a debt of up to $580 million, few investment institutions have the courage to enter.
ββ¦β¦β
Angela had nothing more to say. They have sought financing from a number of investment institutions, but so far no progress has been made.
She had proposed a rights issue, but shareholders had not responded.
No one wants to fall deeper and deeper......
"Don, your offer ......"
"My offer is in line with the value of the American Southern Company, and I am not deliberately understating its value." Tang Bao is so authentic.
"But this offer is not acceptable to shareholders. Not to mention those shareholders who have reservations about selling the company, even those who are eager to get rid of it, I am afraid that they will not accept it. I can't explain this price to the board of directors, and the shareholders' meeting will not approve the deal. If the price does not reach the expected amount, our negotiations become meaningless. Angela made her attitude clear.
"I think it's worth at least half a billion dollars." Angela added.
Forehead.
$365 million and $500 million, the price difference between the two sides is huge, it's really a huge gap.
Li Zhen was listening to the conversation between the two sides, and she was also thinking in her heart, what would she do when she encountered such a problem? It's a problem you won't encounter in the classroom.
Hey.
Angela asked for $500 million, but the price was repaid on the spot, and this price was not without any room for negotiation. Tang Bao would not be naΓ―ve enough to think that Angela would tell him that the price was low when he opened his mouth, and then stupidly told him, I will sell it for 500 million US dollars, and if I don't buy it, I will pull it down.
Deals are negotiated.
Especially on the issue of price, both sides need to constantly play games to move closer to acceptable figures, and when everyone feels that it is almost the same, the deal is done.
"$375 million, Ms. Angela, I'm sure you can feel my sincerity."
"I'd also like to see a deal come through, $490 million."
"$380 million."
"$480 million."
β¦β¦
The price gap is gradually narrowing, the two sides are still arguing about the price, and they are slowly humbling, and the price that is acceptable to the distance is also being reached.
"Huh, Ms. Angela, everyone is so tired of testing each other's hearts so endlessly. It's also a waste of time. I think it's time to put an end to this endless tug-of-war. $415 million, is my final offer, and if you're confident you've found a better buyer, I can only say sorry. The price rose to $415 million, and Tang Bao said that he was not willing to increase the price, and he would not rise if he died.
With his worth, he may not be able to look down on the two million dollars.
But this is business, and doing business requires a calculating heart, and excessive generosity will only make you suffer in negotiations.
"Don, you're not a gentleman to fight for even five million dollars with my woman for a long time."
"In business, there are no women and men, only winners and losers." Tang Bao said lightly.
"Okay. I accept the price! β
Angela also said with a smile. She is also very satisfied with the fact that she can sell the company at such a good price, and as the CEO of the company, the last thing she can do for the shareholders is to sell the company for a good price.
The most important issue of the purchase price has been negotiated.
Tang Bao and Angela had a brief conversation on some other issues, and then the negotiations ended.
But.
Angela also has to get a shareholder vote to approve the deal for it to go through, so it will take some time for the deal to happen......