Chapter 292: Deal

In the news thrown out by Susanna, secret information such as Aiken approaching Rolls-Royce was provided by consulting firms, but the inference that Airbus and Alstom's market conditions were not good, resulting in a decrease in orders from Hillington, was inferred by Suzanne after looking at the list of Hillington's main customers.

Because Suzanne saw that Hillington's customers were very concentrated, for a company, customer concentration is a good thing on the one hand, which can greatly reduce market expenses and improve product profit margins, but on the other hand, this situation is also a red flag, which means that the company is too dependent on customers.

Once the customer has a situation on the side, it will inevitably encounter the disaster of pond fish. As Susanna expected, Suzanne searched for the relevant information of Hillington's main upstream customers, and found that Hillington's two major customers are now experiencing sales declines.

Although the consulting company has also conducted relevant investigations on Hillington, most of them are concentrated in the part directly related to Hillington itself, after all, Hillington is a small unlisted company, and the consulting company collects less relevant information on weekdays, because it also costs investment to collect these relevant information.

For customers such as Airbus, the consulting company really neglected to collect the relevant information about it, and as for the news of Alstom, the consulting company also collected it, but did not think in this direction in the merger and acquisition proposal.

Who knew that this would actually become Susanna's killer feature.

Joe. Although Hill maintained his composure on the surface, he actually had a handful of sweat in his palms, in fact, Hillington's future situation is even worse than Suzanne said, and the impact this year is not as big as Suzanne said, after all, this is last year's order, but next year's order has been reduced by a full thirty percent.

Front Joe. Hill's sky-high asking price is just to get a better bargaining basis and cover up the company's current predicament.

But now that the lid has been lifted, how can this offer be reported? For a time Joe. Hill's mind was a little messy.

Fortunately, Vice President William. Philip talks with Joe before the talks. Hill communicated, and it was time for him to stand up and speak.

"Well, Miss Suzanne, we accept the £600 million price you initially offered." Vice President William said.

"No, no, no," Suzanne shook her head, "I think that due to unexpected new circumstances, the basis of this price that we originally proposed has changed, so this price will also need to be adjusted." ”

"According to the latest estimates, it is difficult for your company's net profit to reach 25 million pounds next year, and according to the original acquisition price-to-earnings ratio we gave, I think the latest purchase price should not exceed 500 million pounds at most."

Suzanne was all at once removed from Joe. Hill's offer of 700 million pounds forced it to voluntarily reduce the price to 600 million pounds, and now only 500 million pounds is given, which is equivalent to a full 30% cut.

"Miss Susanna, your offer seems to be very insincere." Joe. As soon as Hill heard the price, he couldn't maintain his original calm mind anymore.

That's a £100 million reduction in one fell swoop, which is a huge amount for anyone.

"Mr. Qiao, we all have to follow the objective factual standard, right?" Suzanne smiled and said, "You see, judging from the current business situation of your company, this is a very fair price. And, as far as I know, the industry is going to be more and more competitive, and after all these years, Hillington has basically not launched any new competitive products. ”

"This shows that the competitiveness of Hillington will be further reduced in the future, and if it is sold now, Mr. Qiao can also guarantee the maximum benefit, if it is a year or two later, maybe Hillington Company will be even less valuable."

"We are actively exploring new markets, and if we can pass the EU restrictions, our products can be sold to Russia and even China." Joe. "In this way, our company's product sales will further expand the market." ”

"Perhaps, Mr. Joe. Customers in Russia and China will be interested in your products," says Susanna. "However, with the strength of your company, I think it will be very difficult to convince the European Approval Committee."

This statement hit Joe again. Hill's weakness, in fact, Hillington has made several applications, but none of them have been successful. To make matters worse, Japanese competitors have already begun to sell similar materials to Russia. In this regard, the Japanese government is more supportive of corporate action than the European Union.

Ten years ago, this composite material may have been a very leading thing, but today, Russia has actually developed corresponding similar products, but the cost of their own materials is higher, the purity is worse, and the procurement is relatively more cost-effective.

Of course, for the Chinese market, this thing is still a high-end material, and now relevant institutions are vigorously developing their own aircraft engines and better gas turbines, and the demand is relatively strong, but because Chinese mainland has not developed related products, this thing has always been one of the embargoed lists.

However, in fact, the mainland has long purchased a lot of similar products of Hillington's competitors through indirect channels of companies from various third-party countries, and there are too many things in this world that can be adapted, but Hillington's company is too small, and it is not easy to open up such tortuous channels.

If Duke had not been purchased in the name of a Luxembourg company, which itself was indirectly established through a Hong Kong company, Joe. Hill also did not dare to openly sell the company to a Chinese-backed company.

"Well, Miss Suzanne, a fixed price of £550 million, nothing less" Joe. Hill thought for a moment and said flatly. "Below that price, I have no reason to sell."

When Suzanne heard the offer, she was about to say something more, but Duke felt that it was almost the same, and it was much less than she expected.

He was now a little anxious to return to China to solve the problems caused by this trip to London, so he took over the conversation: "Okay, Mr. Qiao, we will close the deal at this price." ”

The next thing is relatively simple, both parties are companies within the European Union, and Hillington is not a large monopoly company or a listed company, so the procedures to be completed after the transaction are relatively simple, Duke authorized Suzanne to complete this next step, and he was very sorry to say goodbye to Susanna, who was reluctant, and rushed back to face the bleak life.

This blessing of Qi people is really not something that ordinary people can afford. Duke didn't know what kind of storm he would suffer when he returned.