Rebirth 2008: I Can Make Money Reading

Chapter 147 Nayuki's Valuation

(The chapter is wrong, it should be 146)

Xinghai Machinery Company is developing rapidly, but this time the purchase of land and development seems to be slow, which affects the progress of the project.

The construction of industrial land is a very long process, and it will take several months at the earliest. However, within these few months, the market is changing rapidly. If you can make money selling products this month, you may not be able to make money next month.

Mu Yang knows that he will not lack technology in the future, so he plans to purchase a large amount of industrial land to build factories, dormitories, and office buildings.

This time, it is not a few tens of mu to a hundred mu, but a requirement of two thousand mu.

How domineering like Apple's future headquarters.

Building such a large place is not for showing off, but for practical needs. But it can also show the strength of the company. Nowadays, Xinghai's reputation is too small. Apart from the valve industry and laser welding industry, who else knows it.

None of the city leaders came to inspect it.

As for whether it is easy to find industrial land of more than 2,000 mu, there is no need to worry about it.

As long as the real investment is made and it is a high-tech enterprise, the local Z government will try its best to help him move out an open space.

After the industrial land is purchased, generally it cannot be idle for more than one or two years. It must be invested within two or three years, and the investment (deducting the land cost) does not reach 25% of the total investment and cannot be transferred. If the development and construction do not continue, the land should be recovered after paying the idle fee right of use.

The requirements of Z governments in various places are similar.

After Mu Yang plans to buy it, he will immediately ask a design company to design it, and at the same time start leveling the land, and wait for the construction permit and construction drawings to come out before starting development.

He doesn't know what to do in the future, and what are the requirements for the factory building, so the factory building should be built higher.

With more than 2,000 mu of industrial land, the minimum investment in land alone is 600 million yuan, and Mu Yang doesn't have that much money.

As of November 5, the funds he can use, including stocks, are about 200 million yuan.

Mu Yang was worrying about funding issues. Naixue’s vice president, Yang Nian, called him and said that recently three venture capital investors had taken a fancy to Naixue. Whether to agree to contact negotiations.

Mu Yang mentioned to her that Naixue doesn't need to bother him if he doesn't reach a valuation of 6 billion yuan.

Mu Yang didn't think much about it, and directly agreed that he was short of money, and he wanted to transfer part of the shares so that she could come back and report the situation to him.

There is a big difference between financing and share transfer, and it is easy for laymen to get confused.

The money raised by Naixue cannot be diverted to Xinghai Machinery, let alone used for personal use, it must be used for Naixue’s development.

Of course, it is possible to buy a building or a car in Naixue's name, but when the time comes to sell the car, the money will also go to Naixue, not to Muyang.

If the shares are transferred, for example, Naixue’s valuation is 5 billion. If someone wants to buy 10% of his shares, he must pay 500 million yuan to Mu Yang. This money is Mu Yang’s personal, not Naixue’s. It would be a fool to invest this money in Naixue.

Mu Yang also has to pay 20% of the personal income tax, and he only has 400 million yuan in his hands.

Only then can he invest the 400 million yuan in Xinghai Machinery Company.

Financing or transfer of equity is to add new shareholders, and the accounts must be clear.

In the past, there was a debt between the two companies, and Naixue had to settle it clearly before financing or transferring shares.

From now on, Mu Yang will stop lending money to Naixue for development at will, as it will easily lead to confusion in the accounts.

Moreover, as the general manager of Naixue, he has to give himself a salary, otherwise he will be working for others for nothing.

He still understood these easily overlooked details.

Venture capital intends to raise funds for Naixue, just to make Naixue develop better and obtain higher returns.

Regardless of financing or direct transfer of shares, Mu Yang has to sell the shares, just saying that the latter is a bit troublesome.

The trouble is, venture capitalists will ask you: Why do you want to "sell" assets at a low price? Are you not optimistic about Naixue's development?

Most VCs invest in people and then invest in projects.

In terms of management and marketing, Naixue has been recognized by the venture capitalists who have been observing Naixue. They think that the leader is a person with business talent, so they want to vote for Naixue.

Mu Yang thinks about the problem from the perspective of venture capital. He wants to sell a part of the shares to develop Xinghai Machinery Company.

Waiting for the listing to sell?

That's unlikely.

The ban on U.S. stocks can only be lifted after one year of listing. During this period, how many times Naixue’s stock price has risen has nothing to do with him, because he can’t cash out. Even if one year after the ban is lifted, only 10% can be cashed out through the secondary market within two years, and it will be a bit troublesome to transfer shares privately after listing.

When shareholders hold more than 5% of the shares, they cannot sell shares privately. After reaching 5%, when the proportion of the issued shares of the listed company held by it increases or decreases by 5%, it shall report and announce in accordance with regulations.

There are other regulations that are not so easy to cash out.

Two or three years later, Naixue's stock price fell to something unknown.

Therefore, it is best to be able to cash out before going public.

He has also calculated an account himself. As competitors join in to grab the market, Naixueyue's profits will become lower and lower. If he does not go public, the money he can make from Naixueyue is about 2 billion to 3 billion yuan Yuan, about three years.

If you cash out all the cash before going public and transfer Naixue to the company, you can earn at least 10 billion yuan. If you use this money to invest in other companies, you will earn far more money than after the listing.

As for other venture capital institutions, it's just hard to guess that Naixue will depreciate so quickly, and they don't have as many restrictions on cashing out as Mu Yang, the general manager.

But how much Naixue valued and how to value it, Mu Yang only knew superficially. After learning it, he felt that he was really not a financial material. Too much professional knowledge made him dizzy. This is a bit like a liberal arts student studying physical chemistry.

He couldn't improve his financial knowledge through the reading system, so Mu Yang didn't think he was stupid, so why couldn't he learn it.

Forget it, don't worry about this anymore, there is a specialization in the art industry.

Moreover, it is a waste of time to see that financial knowledge does not increase experience.

According to the boss's request, Yang Nian returned to City H, and the two discussed Naixue's financing.

It was the first time for her to visit the boss's house, and Nuoda's villa also shocked her.

The two were sitting in the hall chatting, Song Xuelu was listening like a curious baby, hoping to learn some knowledge about finance, she is a sophomore, and it is estimated that she will be able to complete the course of mechanical engineering next semester, and she will apply for it in her junior year Examinations for the remaining subjects of the mechanical major, and apply for majors in accounting or business administration. In the future, she wants to take the CFA chartered financial analyst and certification exam.

Yang Nian told his boss that how VC evaluates the value of a company and the different analysis methods in different industries do not come to the result immediately.

But in actual negotiations, just like buying vegetables, the valuation is often reached in the bargaining between the two parties, and the final agreement is reached.

Mu Yang heard a lot of professional terms and asked, "What is P/E?"

"That's what price-to-earnings ratio means."

"I heard people say that the price-to-earnings ratio is used to estimate." Mu Yang doesn't know how to calculate, and he doesn't have a deep understanding.

It is said that a price-earnings ratio of 10 means that it will take 10 years for the investment to return to its capital.

"PE is not a hard indicator. The valuation methods of VC or private equity can be roughly divided into two categories: one is the absolute valuation method, which discounts the expected cash flow in the future; the other is the relative valuation method. Valuation method, the value of the company is estimated by the multiples of the industry."

"We are not an Internet company, and the valuation based on the number of MAU users is not appropriate."

Yang Nian talked about some concepts such as price-to-earnings ratio, stock price-to-book value ratio, cost-to-sales ratio, and enterprise value multiple.

Mu Yang said bluntly: "Mr. Yang, what you said, to be honest, I was dumbfounded when I heard it. Just give me a number. How much do you think Naixue's current valuation is appropriate?"

Yang Nian was stunned for a moment, and when he saw that the young boss didn't understand, he couldn't help laughing, and explained:

"Currently, let's be conservative at 7 billion. We can ask for a price of 9 billion. Naixue belongs to the catering company, and this type of profit fluctuates greatly. According to the traditional company method, the P/B price-to-book ratio is estimated, combined with other factors, this is my opinion. personal estimate."

"The growth potential of Naixue is actually not great. We currently occupy three major cities. Many cities are not suitable for opening new milk tea. In other words, opening one will distract us too much and it is not worth expanding.

At the same time, some colleagues have already participated in sharing the cake. I think that Naixue’s stores can open up to 200 stores, and there will be losses if there are more.

VC will definitely consider the growth rate and upper limit of the business scale, and also consider that Naixue’s profit margin will decline, not just calculate the P/E value based on the current profit rate. "

Mu Yang pondered, what she said made sense, like Guicheng, it might not be suitable for Kai Naixue, not to say that no one consumes, but that the high-end consumer group is not concentrated enough, the profit will be much lower, and there are very few places that can satisfy the opening of a store.

However, opening one or two stores in a city will bring great difficulties to management, and other costs will increase significantly, and the overall cost will be high, which is not worth developing.

Yang Nian's estimate was somewhat ideal, perhaps because of his feelings.

"Okay, make an appointment to discuss with a suitable venture capital." Mu Yang nodded in agreement.