Venture capital bigwigs only suddenly realized when they heard this. It's the right day! It's really a big deal.

According to Cai Siqiang's explanation just now, there is really nothing to find fault with in terms of product functions of SAL company, even if the function is not perfect, but compared with the products on the existing market, it definitely has the feeling of standing out from the crowd.

It's just that SAL has developed a sample of this navigator, and everyone still thinks something is missing, and now Cai Siqiang has unveiled the hole card of the acquisition of TOMTOM.

Everyone immediately understood that SAL had completely thought that it still lacked engineering experience in manufacturing and sales and service channels, brands, etc., but since SAL had proposed an acquisition plan, it proved that it had considered more mature in this regard.

If TOMTOM, one of the industry's top three navigation manufacturers, can be acquired as planned, SAL will be able to make up for this shortcoming.

Some of the bigwigs here have studied the navigation industry, of course, they know that TOMTOM has had a hard time in the past two years, under the squeeze of various opponents, the market has shrunk more sharply, revenue has been declining, and the stock price has basically reached the bottom. ACCORDING TO MARKET ANALYSTS, THE BEST OUTCOME FOR TOMTOM IS TO BE ACQUIRED.

TOMTOM now relies on geographical advantages and first-mover advantages, and barely maintains the position of the leader in the European market, and the US market has been in a mess, retreating from the original second position to outside the top three, and now it is struggling to support, and it is estimated that it is also looking forward to a more reliable acquisition plan.

This group of young people of SAL company, it seems that the pimples have not faded, but they are very sophisticated, and they can aim at TOMTOM, and they obviously have a thorough understanding of the entire navigation industry.

This group of venture capital bosses admired and secretly vigilant, looking at this posture, this group of young people is not easy to fool at all, it seems that today's price is not low.

"Ladies and gentlemen, I have invited you here today for this acquisition plan, and frankly, with the current cash reserves of our SAL company, it is not enough to acquire TOMTOM." Cai Siqiang smiled. "Therefore, it is necessary to turn the fortune to the gods of wealth to complete this acquisition." Cai Siqiang joked.

"Mr. Cai, what about the situation, we basically understand, if it is according to the product you just talked about, I personally think that the plan to acquire TOMTOM is very feasible, and we are very interested in joining this plan, but I don't know how much this project is going to invest?" Zhou Chen, senior vice president of The Carlyle Group, asked.

"We expect the entire acquisition plan to cost about $1 billion, including $500 million for the acquisition of a controlling stake, and $500 million for capacity integration, channel integration, and brand promotion after the acquisition. According to our forecasts, the global revenue of the navigation business is expected to reach $2 billion to $2.5 billion in the first year, $3 billion to $3.5 billion in the second year, and $4 billion to $5 billion in the third year.

We expect the navigator business to eventually achieve approximately $10 billion in annual revenue. ”

A billion dollars?

When the four venture capital bosses heard this offer, they quickly calculated it in their hearts, and felt that this amount was still relatively reliable.

The acquisition company will probably spend 500 million or 600 million US dollars to acquire a controlling stake, 300 million or 400 million US dollars will be set aside for later operation and promotion, and the integration cost is expected to cost another 100 million US dollars, which can basically be coped.

With the outstanding product that SAL just demonstrated, it is a bit exaggerated to say that it is a bit exaggerated to create the world's first brand of navigators, but it is quite reliable to make this product into a certain climate.

Although the navigator market is now very chaotic, but if it is carefully subdivided, in fact, there is still a very good opportunity in the high-end market, the most chaotic and disorderly concentrated below 1,000 yuan, in this fierce fight in the Red Sea market, not only many manufacturers, copycat products, but also continue to bear the impact of built-in navigation from mobile phones.

And in the market of high-end products of more than 3,000 yuan, it is much better, after all, there are only a few mainstream products on the market, so the competition is relatively orderly, and basically each has its own basic plate to maintain, and these manufacturers will not do the thing of killing chickens and eggs.

Judging from the sales volume of automobiles in recent years, the sales volume of mid-to-high-end cars is huge, with the sales volume of BMW, Mercedes-Benz and Audi three high-end luxury car brands exceeding 4 million units for several consecutive years, of which the sales volume in the Chinese market alone exceeded one million units in one year.

In terms of global car sales, global sales have exceeded 70 million in recent years, according to professional organizations, the potential market capacity of navigation device sales alone exceeds 20 billion US dollars per year, and the total market capacity of high-end products is estimated to be as high as 5 billion US dollars to 6 billion US dollars if estimated according to a quarter to one-third of the share.

With the addition of ancillary businesses such as map services, the market capacity will expand by about 30%. If mobile network information services can be integrated in the future, the entire market will be even more impressive.

Therefore, there is still something to be done in the navigator market segment.

This information flashed in the minds of all venture capital bosses, and I felt that SAL's acquisition plan was generally reliable, and it should be promising to regain the world's No. 1 throne for TOMTOM with its leading technology and TOMTOM's current brand and channels.

Thinking that Garmin, which is currently the world's No. 1, is now worth more than $9 billion, and TOMTOM, which was acquired by SAL, is likely to beat Garmin again in just a few years to return to the first place, then TOMTOM's market value is believed to return to its original price and replace Garmin's position, so that just counting this piece, the value of a billion dollar investment may exceed eight or nine times.

Obviously, this is already a pretty good deal just from that aspect. What's more, SAL itself has so many selling points.

"Your plan looks very good, and the product is very advantageous from the sample demonstration, but SAL itself is still very young, and I am curious how you are going to operate this international M&A. Also, how did the management team think about the merger? Liu Chengyuan, chief partner of IDG, asked, worthy of being a veteran venture capitalist, this question is called to the point. A direct hit on one of the biggest weaknesses of the SAL company right now.

was hit in the soft underbelly, but Cai Siqiang was not ashamed, "Mr. Liu's question is also one of the important reasons why I invite you to come today, to be honest, we have no advantage in this area, but all of you here are big names in the investment industry, seniors, with rich experience in asset operation, I very much hope that you seniors can give us some valuable advice." ”

Knowing is knowing is not knowing, Cai Siqiang is very single, directly confessing the facts, and learning from experts. This candid attitude made the four venture capital bigwigs laugh uncontrollably.

Liu Chengyuan also felt as if his punch was in the air, but he didn't mind, the team that could see his strengths and weaknesses clearly was too few of the venture capital deductions he encountered, so he was more trustworthy.

Few entrepreneurial teams think that their business plans and management teams are flawed, and usually, when encountering such a self-confident entrepreneurial team that is blindly narcissistic, Liu Chengyuan usually laughs and avoids it.

Compared with the IQ of a fool, that is two goods; In the same way, to talk about business with narcissists is to ask for failure.

Since Cai Siqiang can see his shortcomings clearly, but he can find the right person, then this shortcoming is no longer a shortcoming.

And capital operation is indeed one of the businesses that venture capitalists are best at, and Cai Siqiang is really looking for the right person when he finds them. Being able to borrow his brain to this point, Cai Siqiang can be regarded as making the ultimate use of the resources of venture capitalists.

Well, now everyone really doesn't have any problems, there are products, plans, funds, and talent seems to be found, and the last question that remains, that is, how much shares are these billion dollars worth?

Within a certain limit, the amount of money is really not a problem for venture capitalists, and the investment of millions of dollars, tens of millions of dollars, and hundreds of millions of dollars is actually not much different for them. What they need to care about is what the money is used for, and whether it is used reasonably? How much do you make on this deal?

"Okay, I don't have any problems with anything else, now let's talk about how much this billion dollars is worth in SAL?" Carlyle Investment's Zhou Chen took the lead in raising this issue that everyone is most concerned about now. "After talking about this issue, the four of us will talk about the proportion of capital contribution for this joint investment."

Zhao Jianwu and Dong Feng did not speak on the side, and they were calm and onlookers from beginning to end, seeing that Cai Siqiang gradually persuaded these venture capital bosses to make up their minds to invest in this project, although they had doubts about Cai Siqiang's one billion dollars, they also thought that this was a negotiation trick of asking for a sky-high price and paying back the money on the spot.

Who knew that by now, these venture capital bigwigs have no objection to this lion's big mouth, and began to talk directly about the question of how many shares are worth of these money.

Unexpectedly, Zhao Jianwu and Dong Feng really felt too unexpected. Only then did the two know how big the gap between themselves and Cai Siqiang was in terms of business operations.

But since he can't understand these things, Cai Siqiang will operate them, speaking of which, Cai Siqiang is the second boss of the company, if he is not afraid of the loss of his own interests, what are he afraid of.