Cities: Start with street stalls

Chapter 232 Negotiation
Since it was a little far away from the destination, it was already noon when Chen Hua arrived at Tuanmei Food Co., Ltd.

Lin Xuan was also very good at being a man, so he took Chen Hua to the most famous local restaurant for a meal without saying anything, and then took him to visit the factory.

Although a company has many departments, as a food company, the product is the basic. Naturally, Lin Xuan took Chen Hua to see the production line.

Especially for those new equipment that I just bought, it is undoubtedly a bargaining chip for negotiating the price.

Chen Hua looked at the newly upgraded production line. Although he was very satisfied, he kept his expression on the surface. He just nodded his head, making Lin Xuan on the side a little confused.

Afterwards, Lin Xuan took Chen Hua to visit other places in the company, emphatically introducing the two assets of the factory area and the office building, which can be regarded as the advantages of their company.

It was almost the afternoon of the visit, and the two went to the company's conference room for a short meeting to discuss cooperation matters in detail.

Lin Xuan cleared his throat and asked, "How about Mr. Chen, our company is not bad, I don't know how you want to cooperate."

Chen said: "It looks good on the surface, but I don't know how profitable it is. Can you provide the financial report for the last six months?"

Hearing this, Lin Xuan's heart skipped a beat. The best financial report in the past six months was a small profit, and most of the time it was flat, especially in the last month, when it started to lose money.

If this report is shown to Chen Hua, how can he discuss this business? Profit is the most basic condition for judging a company.

As for fake accounts?You must try not to show this kind of thing to others. If someone catches you, it will be even more troublesome.

Lin Xuan pretended to be regretful and said: "Our company is good everywhere, but the finances are a bit slack. The monthly financial report for the past six months has not been released. I am really embarrassed."

"Of course, when the time comes, we will definitely expel this kind of irresponsible finance and replace it with a solid finance."

Seeing Lin Xuan's refusal to provide the monthly financial report, Chen Hua had already figured it out. It probably wasn't very good-looking. As long as it looked a little better, he wouldn't refuse to show it to himself.

Chen Hua thought for a while and said, "If you don't show me the financial report, it will be difficult for me to estimate. I hope you'd better provide me with some data."

Lin Xuan said with a smile: "The monthly financial report for this half year will definitely not be published at once. Why don't you look at last year's annual report, we have this."

After finishing speaking, Lin Xuan took out a document and handed it to Chen Hua. Seeing that he was already prepared, he probably only planned to let Chen Hua read last year's annual report.

After a brief search, the company's situation last year was not bad. Although it didn't make much money, it still made money overall, and shareholders were able to share some dividends.

Chen Hua thought for a while and said, "Based on this situation, I can value your company at most 200 million."

"Twenty-two million?" Lin Xuan yelled in disbelief, "You have to know, the factory equipment I showed you today is more than that price, and I only spent more than 200 million to buy it."

Regarding this, Chen Hua said indifferently: "Equipment is one price to buy, and another price to sell. I don't want to know how many things your company has, I just want to know how much money your company can make."

"I will give you 800 million yuan for the factory area plus the production line, plus 300 million yuan for the office building, and another 100 million yuan for you, which is almost the same price."

Although Lin Xuan was mentally prepared that Chen Hua's quotation would not be very high, he did not expect it to be so low.

Lin Xuan asked somewhat unacceptably: "Then how much capital do you plan to inject, and how many shares will you get?"

Chen Hua closed the financial annual report in his hand and said, "You may have misunderstood me. I'm not planning to inject capital, but to buy out the full rights."

"Actually, the price is not calculated that way. I have learned about the equity structure on your side. You own 60.00% exclusively, and the other four share 40.00% equally, and one person holds [-]%."

"You just need to buy their shares at a low price, and then pack them up and sell them to me at this price. I believe that the price of your shares is definitely more than 2000 two million."

Chen Hua is almost telling him to cheat his partners. As long as the partners' shares are sold at a low enough price, his 60.00% can be converted to a higher price.

For example, if Lin Xuan lied to his partner that the company was only worth 1000 million, and then asked their partner to sell 400% of the shares for 40.00 million, and then sold the whole package to Chen Hua.

This is equivalent to selling 60.00% of his shares for 800 million. For him, the company can also be regarded as a price of 3000 million.

Naturally, Lin Xuan could understand what Chen Hua meant. This was also a common practice in the business world. As for how to do it, it was up to Lin Xuan himself.

Lin Xuan said with some embarrassment: "It's no problem if you want me to buy their shares and sell them to you in a package, but the price is really too low, not only me, but they also can't accept it."

"How about a price of 4000 million together? The latest production line plus the factory area is priced at 500 million, and the office building is priced at 500 million."

Chen Hua said disdainfully: "Boss Lin, you really dare to put gold on your face. How do you say this price?"

"No matter how new the production line is, it is considered second-hand if it has been used. You can go to the market to see if the second-hand equipment that is Jiujiuxin can be sold for half the price."

"Although the price I gave is low, it's not unfeasible. It's actually not much different from your company's price."

"Besides, you didn't buy the equipment in full. After the equity transfer, the debt will fall on me. This is completely a deduction."

"The most important thing is, how do you trust the company's prospects? Boss Lin, you know that as the production line depreciates and the company's profitability gets worse and worse, I may not be able to give you this price when I come back next time."

"Of course, you can also choose to reject me and let me go to Total Foods Co., Ltd. to have a look, but whether I will come back or not is not certain."

Chen Hua's words seemed to have directly pierced Lin Xuan's heart with a sharp sword, making him turn pale. Has the situation of his company been seen so clearly?
The 2000 two million price is undoubtedly a cheap sale, but if this company continues to be kept in my hands, then I really don't know if it will be worth the price.

Chen Hua's words also reminded him that the company still owed a large amount of debt to the equipment supplier. Judging from the current situation, this debt is difficult to repay, and it is too late for him to be happy when someone takes over.

Sometimes the defeat is like a mountain, and it is very difficult for a company that has already started to lose money to turn losses into profits. Besides, doesn't Lin Xuan have the ability to turn losses into profits?
Then, thinking about it, there is nothing wrong with Chen Hua's valuation that combines the future market.

It's a pity that this company, which was once valued at hundreds of millions, can only end up with such a result in its own hands.

(End of this chapter)