146 Long-term schemes
"In that case, we can discuss the specifics of the cooperation." Filknight said.
"If supply chain cooperation is not a problem, then the problem that Phil is bothered by is the problem of our investment?" Chen Zhiwen smiled and said.
"Yes, Eric, you want 25% of Nike shares at one time, it's too much, not only I can't agree, but other shareholders are also reluctant." Philnet paused.
"Then the bank should be fine." Chen Zhiwen smiled and said.
"On the bank side, it's really not a problem." Philnay nodded and said, the bank did not disagree, but also wished that Chen Zhiwen would buy more proportions, the more Chen Zhiwen invested, the more funds Nike would get, and the lower the risk of bank loans, anyway, the bank only cared about whether your company had the ability to repay normally, and he didn't care about the equity ratio.
"With Nike's current economic situation, I have a 25% stake and can bring $5 million in investment to the company, and you are the owner of Nike, knowing that without so much money now, Nike's situation is difficult to solve." Chen Zhiwen said with a smile.
"I wonder if if you have a factory in Hong Kong that you have stopped building a factory in Hong Kong if our board of directors has not reached an investment agreement with you?" Instead of answering directly, Philnet asked another question.
"Of course, you also know some of my investments in the United States, and the situation in Hong Kong, how can I build a foundry with very low profits specifically for your company." Chen Zhiwen said very formally.
With the ultra-rapid development of Nike in the next 20 years, to master the high-end footwear industry chain, is one of the core business strategic plans set by Chen Zhiwen as early as after he just crossed to Hong Kong, starting from Hong Kong, and then moving to the mainland after the 80s, and then the population size and cost performance of the mainland to completely swallow Nike's massive orders, and then with the help of their own capital and the mainland market itself to develop their own sports brand, the follow-up can naturally be derived to the entire clothing brand, and even decades later to counterattack the European and American markets.
Although the goal is set far away, there may be a lot of changes in the future, but at least from the perspective of business logic, the idea of this line is no problem, for this reason, he also deliberately got the Berkshire Hathaway that is about to go bankrupt to Hong Kong, just so that Hong Kong can have high-end textile materials, convenient for the needs of Nike foundries, and after the mainland is reopened, either the Berkshire Hathaway factory will be brought over, or invest in mainland enterprises to make this factory, anyway, Berkshire Hathaway's factory came to Hong Kong, It is enough to train hundreds of relevant talents, and besides, the mainland will not be weak in textile in the future.
It takes so much effort to let the local industry chain have a related industrial chain, otherwise, the cost is one thing to purchase raw materials from overseas, and the time difference is even more unbearable.
In the whole plan, the core point is to ensure that you can get Nike orders stably, and how to be stable? Naturally, like Wal-Mart, you have to buy enough stocks, have a certain amount of influence, and the products you can supply are also really good and cheap, so as to ensure that there will be no problems in the future.
Although Wal-Mart's market value is much higher, because it is listed, it can still buy stocks if it is willing to spend money, while Nike is not listed, and it will not be possible until 1980, and when the acquisition is naturally possible, it is possible to copy Wal-Mart's model, but this will delay at least 5-7 years.
And at that time, Nike's supply chain was mature, and shoemaking was not like the daily goods in the supermarket, which had a certain technical content, even if he became a Nike shareholder in the future, but he did not have the relevant technology and could not make high-quality and cheap sneakers, then even if he became the largest shareholder of Nike, there was no way for Nike to use his goods, right?
Therefore, this year is the only window, Nike because of its huge losses in the United States factory and deep debt, lack of money and urgent need to divest the production department, at this time, he naturally has to take over, but must also get a certain percentage of Nike's shares, otherwise, he Nike will come back to life, change hands and give orders to others, what can he do?
As for the technology, now that Nike has no suppliers, it will inevitably support its own side, as long as you master the relevant technology and become one of the major shareholders of Nike, you will not worry about the order There will be too many problems.
"But the idea of the board of directors is that if Eric can build a large shoe factory in Hong Kong, then Nike's economic problems will be alleviated on a large scale, so they are willing to accept you as a shareholder, but they are only willing to offer 15 percent of the stock quota." Filknight said.
"15% is too little, I need to spend millions of dollars to build a factory for Nike in Hong Kong, I need to make sure that Nike orders will always be given to me, if my factory is built, and your orders are not given to me, what should I do? Who is responsible for my losses? Or we can sign a long-term mandatory supply agreement. Chen Zhiwen said with a light smile.
"Eric, as long as your quality is qualified and the price is right, we will naturally find you for long-term cooperation." Philnet hurriedly shook his head and said, once this kind of contract is signed, then Nike will be controlled by this supplier, in the history of business, except for some top technology monopoly suppliers, no one else has ever heard of such a thing.
"So I should just take the risk of building a factory? Phil, do you think that's fair to me? Chen Zhiwen said with a smile.
"This" Philnet is also a little embarrassed, he also knows that in the absence of any contract, let others invest millions of dollars to build a factory, in terms of business cooperation, is a very unfair thing, and he is not a super large customer, there is no guarantee that people will naturally not like you.
"Let's make a compromise, 20% of the shares, I inject 4 million US dollars, and sign a ten-year OEM contract, as long as there is no quality problem in my factory within ten years, then Nike will have to give at least half of the order to my factory, how about it? It's only ten years, and it's not a long time, right? Chen Zhiwen continued.
However, any larger enterprise will not choose only one supplier when purchasing, which is a normal operation to avoid risks, and this is true in any industry.
Long-term mandatory supply agreements will only exist in a few special industries, such as this ordinary textile and footwear industry, which almost does not exist. Ten years is a time for the other party to accept.
"Ten years, we can discuss it, and I think the board of directors will also seriously consider this issue." Philnet said with some confidence.
"Okay, then after you go back to confirm, inform me as soon as possible, it will take a certain amount of time to build a large factory in Hong Kong." Chen Zhiwen nodded and said.
Ten years is naturally not insurance, but the so-called long-term contract, if it is too mandatory, then Nike will never sign, even if it can be negotiated in the end, it will delay too much time, if it is really too urgent, Nike can pay other costs to find other investors.
Nike's current problem, in fact, is the problem of money after all, as long as the money is enough, all crises can be easily solved, Chen Zhiwen only put forward the best solution to the problem, definitely not the only choice, Nike's board of directors, including the founder of the current Philip Nike, in fact, basically do not want outsiders to get too much equity.
And if the contract is not very mandatory, then Nike will be able to bypass it in the future, but it will lose its meaning.
Now I want a ten-year agreement, but in order to ensure that in the initial ten years, we can get a stable supply, and then obtain the relevant technical background, if you want to stabilize it for a long time, the best way is to get more equity, just wait a few more years, and wait for Nike to go public, the stocks in the market can be traded, and you can easily continue to increase your equity, after all, a newly listed company will not cost much.
"No problem, I'll arrange for the board to confirm this matter as soon as possible." Filnet agreed.
PS: To explain, a big investment actually requires a long time of negotiation, as few months as many as years, so some investments in the book will not end in several chapters in a row, but will end every few months if it is as reasonable as possible.
However, in some cases, such as the layout of non-strategic real estate investment, etc., it will also be negotiated in one chapter, but the premise will also be that there is a professional team to negotiate for a long time, and then the protagonist comes forward to negotiate with the other boss to reach the last point.
Relatively speaking, this should be a balance between non-hydrology and conformity with reality.
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(End of chapter)