Chapter 504: Difficulty in Acquisition of Winery
Later on Monday afternoon, Luo Yang returned to Shanghai from Yang City.
He had not planned to go back today, but Qiao Yuanshan called him in the morning and asked him to have dinner with him today, saying that he wanted to talk about the acquisition of the winery.
Coincidentally, when he was rushing to Shanghai, Zhang Yiming also contacted him, hoping that he would have time to visit the capital this week. If nothing unexpected happens, it should be for Toutiao.
In addition, I had an appointment with Shen Nanpeng to discuss something on Friday, so I had to rush back from the capital before Thursday.
This week has been busy enough.
Since we are talking about acquiring a winery, we must also involve Jiang Xiaobai's other shareholder, Cai Fujun.
The three met in a private restaurant in Songjiang.
"Old Qiao, after this trip to Anhui Province, I see that you look much more haggard."
Less than half a month later, when I saw Qiao Yuanshan again, he looked a little darker and thinner.
Cai Fujun couldn't help but tease her while drinking: "Why, have you fallen for the beauties in southern Anhui?"
"What a beautiful place, just drinking."
Qiao Zhiyuan curled his lips and said, "I was drunk eight out of ten days during this trip, especially during the days when I was in contact with the winery. I met a few drunkards who drank so much that I vomited."
"My goodness, how dare you entertain wine with the winery business?"
Luo Yang also joined in the fun: "It is said that if you can't drink more than 5 kilograms of alcohol, you can't even get a job certificate."
"I think we should ask Mr. Luo to bring Mr. An along next time."
Cai Fujun smiled and said, "I think it's possible."
He, Liu Haishan and He Maosong had seen An Ying's alcohol tolerance at the dinner table. Although they didn't know how much she could drink, she didn't look drunk at all after drinking more than three kilograms, which showed her alcohol tolerance.
"An Ying doesn't have time."
Luo Yang smiled and said, "This year is a critical year for Nayuki and Lemon CC, especially Lemon CC. We will add at least 2500 direct-sale stores throughout the year, and we also need to initially complete the franchise store business."
"Yes, this year is a critical year, not only for Luo Sheng Tang, Kunpeng Technology and other companies, but also for Jiang Xiaobai, isn't it?"
Qiao Zhiyuan naturally took over Luo Yang's words and brought up the topic of tonight's discussion.
"Old Joe, have you found your target?"
"Well, I've spotted a winery in Lujiang. In the early years, it was quite large, almost reaching the standard of a medium-sized winery. However, its profitability has declined in the past two years. Currently, its annual output is about 80 kilograms."
"Annual output of 80 jin?"
Luo Yang touched his chin and said, "Old Qiao, according to the sales target of 5 million this year, we have to sell more than 2000 million bottles, which is 400 million kilograms of wine."
Jiang Xiaobai is packaged in 2 liang bottles, with more than 2000 million bottles, which means 400 million kilograms of liquor.
"Yes, the annual output of a medium-sized winery is only about 200 million kilograms, right?"
Cai Fujun was able to sum up this indicator in one sentence, and it seems that he knows a lot about the liquor industry.
“We should be able to double our production even without building a new plant.”
Qiao Zhiyuan replied: "I have asked the technicians at the winery about this, and it is not a big problem."
"It seems that you have already done relevant work."
Luo Yang nodded and said, "How much money will this acquisition cost?"
This is the core issue.
When Jiang Xiaobai was established, there was already an agreement that Luo Yang and Cai Fujun would not interfere in the specific management and operation of the company. However, when it came to changes in equity and major investments, Qiao Zhiyuan had to negotiate with the two of them.
Not to mention that Jiang Xiaobai was incorporated into Lingshi Palace Group last year.
As a subsidiary, although it has independent operating rights, major investment projects still need to be approved by the group's board of directors.
Luo Yang is the chairman of the group's board of directors, so he must give his nod on this matter.
Although Jiang Xiaobai's acquisition of the winery was discussed at the board meeting last year and a preliminary opinion was formed at the board meeting, there was no specific implementation target or investment amount at that time, so it could not be considered a final resolution.
Of course Qiao Zhiyuan knew these regulations.
Tonight's dinner party was nominally a discussion among Jiang Xiaobai's three shareholders, but in reality it also included the group's decision-making matters.
"This winery has been losing money for years due to poor performance. It currently owes 2894 million yuan in loans and interest to several local banks. Together with other debts, the total debt is about 3100 million yuan."
Facing Luo Yang's question, Qiao Zhiyuan replied seriously: "Last week, I commissioned a relevant unit to do a valuation. The estimated value of this winery is about 3400 million. Therefore, the cash required to pay is not much."
"Just take over the debt and come up with another 300 million?"
Cai Fujun said cheerfully: "This business can be done. It's a loan. Jiang Xiaobai is in its growth stage anyway, so the pressure of paying it back slowly is not that great. With 300 million, you can get a medium-sized winery for free. It will definitely make a fortune!"
"Brother, don't be so optimistic. I think there are still many hidden conditions."
Luo Yang shook his head and said, "First of all, there is uncollected money. A winery like this with poor performance can still produce 80 kilograms of liquor every year. A part of it should be sold to the outside world to barely maintain the status of repaying loans and supporting workers. But there must be money that cannot be collected after the sale. The county and the winery must discuss this account with the buyer."
When the factory's performance was poor, everyone in the factory was a salesperson.
In order to get wages, to prevent the factory from going bankrupt and to continue operating, a considerable portion of sales operations are blind and hasty, which results in a considerable portion of the payment being uncollectible or difficult to collect.
After Luo Yang finished speaking, Qiao Zhiyuan immediately nodded.
"Mr. Luo is right. This winery has a lot of uncollected payments."
Qiao Zhiyuan said with a wry smile: "This is a lot of money. After years of accumulation, it has reached about 650 million. According to the county and the winery, if we want to acquire it, we have to bear most of the uncollected accounts."
“How much is most?”
Cai Fujun pressed on: "How much of these uncollected accounts can be recovered?"
"We don't know how much we can get back at the moment. We will only know the relevant situation after we enter into formal acquisition negotiations."
Qiao Zhiyuan replied: "The majority of this, from what I heard from the county and the winery, it should be at least 80%."
"Depend on!"
Cai Fujun couldn't help but swear: "No less than 80%, isn't it just 620 million? What's the difference between this and accepting the full 650 million?"
It’s not about the problem of increasing the cash payment by more than 6 million. Jiang Xiaobai can come up with this money himself now.
For Cai Fujun, this condition is a bit
He is also a businessman, and he can be considered an old hand after decades of experience. He knows that this kind of debt will often end up in nothing when the debt is restructured during a corporate acquisition. If you still have any thoughts about it, you will only bring trouble to yourself.
"Let's not talk about this for now."
Luo Yang stopped Cai Fujun from complaining, looked at Qiao Zhiyuan and asked, "What else?"
"If we want to acquire the winery, in addition to assuming the debt, we also have to take in the winery's original technicians and workers. Of course, if we clear them out, we need to compensate them in accordance with relevant regulations."
When Qiao Zhiyuan said this, his brows furrowed.
“Local state-owned assets?”
Just by hearing the second half of the sentence, Luo Yang knew there was a lot of trouble: "Does it involve pension and retirement funds?"
Qiao Zhiyuan nodded.
"Old Joe, this is more than a little trouble."
Cai Fujun's expression also turned serious: "I would rather pay a little more money than get involved in this trouble."
"So I called you here tonight just to discuss this matter."
Qiao Zhiyuan handed a cigarette to Luo Yang and Cai Fujun respectively, and after they lit up, he continued, "What I mean is to reduce the proportion of uncollected payments as much as possible, and then use this money as a condition of exchange to let Lujiang locals arrange for the original workers of the winery, and we will only keep some technical backbones and young and strong workers."
"Anything else?"
Luo Yang knew that it was definitely more difficult to acquire a factory like a tobacco and alcohol factory. There were many people eyeing it. If there were no difficulties, Qiao Yuanshan would not have had the chance to go to the county and discuss the acquisition. It would have been acquired by a powerful local boss long ago. "Taxes were also mentioned in the conditions."
Qiao Zhiyuan admired Luo Yang's profound understanding of the problem more and more, so he raised his glass and toasted him with a glass of wine.
"It can be said that in the 1980s and 1990s, the tax revenue from this winery accounted for nearly one-third of Lujiang's fiscal revenue. Even now, it is still making a significant contribution."
"Our headquarters is in the Magic City, so we don't need to move there, right?"
Cai Fujun was so surprised that he even put down his chopsticks: "That won't work. If the headquarters moves there, won't they be able to control it at will in the future?"
"That's not true."
Qiao Zhiyuan smoked a cigarette and said, "The conditions require that half of the taxes be paid locally."
"Haha, Old Joe, is there anything else? Just tell me all of them."
Cai Fujun didn't bring his girlfriend with him today, and he didn't pay much attention to his image. He leaned back in his chair, put his hands on the chair and said, "It saves Mr. Luo and me from getting startled."
Qiao Zhiyuan stared at Cai Fujun for a while, then turned to Luo Yang and found that he didn't say anything, so he continued: "I won't talk about the rest of the details, but there is one more important point, which is that the local government must hold a stake in the winery, no less than 30%."
I told you, it’s not that easy.
When this condition was put forward, Luo Yang had a preliminary understanding of the difficulty of acquiring a winery.
But when you think about it, among all the tobacco and alcohol companies, not counting the small ones, how many of them do not have local state-owned assets?
Just like salt and iron were government-run industries in ancient times, in modern times, the profits from tobacco and alcohol are no less than those from salt and iron. Luo Yang has a fragment of memory in his mind that in a certain year, the country's tobacco tax revenue was equivalent to the annual national defense expenditure, reaching trillions of yuan.
How could such a large area be given entirely to private individuals?
Cai Fujun stopped talking because in his opinion, the conditions Qiao Zhiyuan had just put forward were more excessive than the last.
Although he knew that the liquor industry was highly profitable, he still felt uncomfortable.
Billionaires' cognition is still limited.
"Old Joe, I suggest you find a professional agency to help you. It's best if you have experience in similar M&A cases. I don't mind spending some money, but the main thing is to avoid any problems."
Facing Qiao Zhiyuan's gaze, Luo Yang thought for a moment and replied: "I will try to bring the acquisition plan report to the group's board of directors next month. If the conditions are not too harsh, I will support this acquisition."
Cai Fujun was slightly stunned, while Qiao Zhiyuan's excitement was beyond words.
Ever since Jiang Xiaobai's sales boom exploded last year, Qiao Zhiyuan has devoted almost all his energy to the liquor industry. After several months of exploration, he has gained a preliminary understanding of the industry and has also begun to get a glimpse of the huge profits it brings.
Of course, if you get involved without any foundation, the risk of failure is extremely high.
However, Jiang Xiaobai has already initially established a brand and opened up the market. Under such circumstances, how could an old and strong businessman like Qiao Zhiyuan easily give up the opportunity?
There is definitely hope for 50 billion, and 100 billion, or even tens of billions, is something we can consider.
So after Luo Yang expressed his support for him, one can imagine how excited he was.
"Chairman, thank you for your support!"
In a rare moment of emotional fluctuation, Qiao Zhiyuan even officially called out Luo Yang's name: "I will strive to take over this winery in the shortest possible time and at the lowest possible cost, and lay a solid foundation for the future development of Jiang Xiaobai."
Yes, a liquor brand that plans to sell billions or even tens of billions of liquor in the future is just a castle in the air if it doesn’t have a winery to support it.
He drank the entire pot of two taels of white wine in one gulp.
Cai Fujun now remembered something.
It’s not because of Qiao Zhiyuan, but because of Luo Yang.
In Lao Cai's opinion, Luo Yang will never lose money in business. As long as he sets his eyes on a project, he will make money.
"Even Mr. Luo supports it, so I, Old Cai, can't be a hindrance, right?"
Cai Fujun smiled and picked up the wine jug: "I'll go with you!"
The atmosphere at the table with three people suddenly became lively.
"I should have brought some girls here tonight to have some fun, but it's a pity that today is Monday."
"If there were a few more girls tonight, I'd feel uncomfortable drinking."
Luo Yang waved his hand and said, "Brother, don't you think that it would be just right for the three of us to drink a little wine and talk seriously about business matters?"
"Now that you put it that way, it's true!"
Cai Fujun laughed and said, "With a few more ignorant little girls, the conversation will become less thorough."
Although he said so, he knew in his heart that Luo Yang was not so casual in this regard.
The three of them then started chatting about Jiang Xiaobai's acquisition of the winery, and even talked about taking some time to go to Lujiang together.
"Well, when the formal negotiations are almost successful, I will organize them."
Cai Fujun took the responsibility and said, "Let's go to Hefei for a few days in the name of celebration."
Luo Yang could not deny it, and Qiao Zhiyuan applauded loudly.
The drinking party lasted until a little after nine o'clock.
Because Luo Yang had to fly to the capital tomorrow to take care of some things, he was able to avoid the second game in the evening.
"Boss, where are you going back to?"
After getting in the car, Tan Bing, who was in the driver's seat, asked Luo Yang where he was going to spend the night.
“Xuhui.”
Being a little drunk, Luo Yang subconsciously responded and went to Jiang Wen.
When they returned home this time, even though it was already around ten o'clock, Jiang Wen and Jiang Xue were still sitting in the living room chatting and watching TV series.
They had already showered and were wearing the same pajamas.
It looked like she had just finished exercising, because she still had a facial mask on her face.
When they saw Luo Yang open the door and enter the room, their eyes lit up.
"Why didn't you call me in advance so I could make you a bowl of Tremella and Lotus Seed Soup."
While helping Luo Yang change his shoes, Jiang Wen said, "We drank a lot tonight. Have you taken liver protection tablets?"
"Fortunately, the three of us had a small gathering and only drank seven or eight taels of liquor."
Luo Yang responded: "I was planning to come back tomorrow, but I got a call and rushed over to discuss something."
"Brother-in-law, I made the black tea a little stronger!"
As soon as she sat on the sofa, Jiang Xue placed a cup of black tea on the coffee table: "Do you want to take a shower first? I'll help you run the water."
"I'll go, help your brother-in-law press his head, he's dizzy now."
After Jiang Wen gave her sister instructions, she walked towards the bathroom which had a large bathtub.
"Brother-in-law, lie down and let me massage you!"
Jiang Xue sat cross-legged on the sofa barefoot, let Luo Yang's head rest on her legs, and gently rubbed his head with her fingers.
How could such a life not attract Luo Yang?
For a period of time, unless there were special circumstances, he would probably come back to sleep whenever he was in Shanghai at night.
Jiang Wen succeeded.
(End of this chapter)
