Leveraged Buyout, referred to as LBO, also known as financing mergers and acquisitions, debt operation acquisitions, is a common corporate financial method in European and American capital circles.
The reason why it is not popular in the domestic capital circle is that its operation is relatively difficult, and ordinary institutions really cannot do it.
If you really get it right, the profits will be huge.
Gao Ling privatized Belle and re-listed the brand Taobo Sports, which recouped the investment cost and made a net profit of Belle women's shoes worth at least 50 billion.
It took two years to actually invest 17 billion yuan, and the syndicated matching M&A loan was 28 billion yuan, making more than 50 billion yuan.
Of course, this is only a paper profit. The leveraged buyout can only come to a successful conclusion after Belle women's shoes are repackaged and launched and Gao Ling completely withdraws.
But until the eve of Lin Fan's rebirth, Gao Ling was still reinventing Belle women's shoes. He said it was very effective, but in fact it would have to go public and disclose relevant financial data to know.
"I will briefly mention a few points, and you will know the difficulty. First, our domestic financial capital market is not developed. When you make supporting M&A loans, it will be very difficult. At most, you can pledge equity and issue junk bonds. Where can you go?
hair?"
Lin Fan stared at this beautiful academic master who was about to "leverage buyout". Compared with the second finger, "Secondly, the domestic professional manager culture is not very popular. It is necessary to privatize a company and re-empower people."
, repackaging and listing, every step is inseparable from the help of professional managers.
Even when necessary, part of the equity should be transferred to professional managers to enhance their subjective initiative.
Third, to choose a good target, it is best to be able to "arbitrage" directly.
Look at our big A-shares, which ones have low price-to-earnings ratios and sound fundamentals? None. There is no way to make arbitrage!"
Li Ying had a faint smile on her face and said very calmly: "I didn't say the target was A-shares, Hong Kong stocks can also be considered!
In fact, A shares can be passed directly without any consideration.”
It's not like Lin Fan has never thought about doing "leveraged mergers and acquisitions" in his mind, but this thing is not something you can leverage if you want. No PE in China dares to touch this thing, except Gao Ling in the future.
If you win the gong, it's easy to say, but if you lose the gong, you have to lose your pants.
Domestic RMB PE funds, such as CITIC, Everbright, Ping An, etc., all do the work of big VCs, that is, invest in unlisted companies and obtain a small share of equity.
This kind is more stable and not so difficult. It is difficult just to increase the scale of management, make profits and influence.
If he had the strength, he would also want to buy out Apple with leverage.
Of course, companies that are on the upswing are generally unwilling to sell, so that's another story - hostile takeover.
He is a little confused now because Hei Changzhi has made the point. If he wants to grow bigger, he will develop in the direction of leveraged buyout sooner or later.
The reason why Gao Ling suddenly became Asia's largest private equity fund is that it won Belle on one go, and at least there was a high probability that it would not lose money.
For an investment institution, this means it has made a name for itself. Sovereign wealth funds, university endowments, pension funds, and retirement funds from all over the world are all generous and clamoring to invest. Even if you increase the management fee, the share ratio cannot stop you.
Their enthusiasm!
If Lam Capital can make a difference in the field of leveraged buyouts, the brand will rise to a big level, and it can also open its M&A funds to the outside world and use other people's money to make money.
He is now well-known in the field of venture capital. It is very easy to raise VC funds, but to raise PE M&A funds, others have to think carefully.
"Mr. Lin~Mr. Lin~"
A few crisp calls from Mr. Lin brought Lin Fan back to reality from the dream of a capital dynasty.
"Oh, what did you just say?"
Lin Fan looked at Li Ying with a little doubt in his eyes.
Li Ying smiled, "I said, let's go to Hong Kong stocks first and have a look. If there is really nothing suitable, then we can start with a simple PE fund, invest in mid- to late-stage projects, and then invest in the Jingzhe Fund in the early stage.
Of course, I think the stock picking work cannot be stopped and needs to be watched for a long time.
The market is changing rapidly, and there are so many peers watching. If a suitable target does appear, if you are slow to start, others will snatch it up."
"Didn't you just keep clamoring about setting up a buyout fund?"
Li Ying pursed her lips and smiled, "I'm actually testing you to see if you have the intention to develop in this field. This is very important to me."
"Then what did you find out?"
Lin Fan smiled. Although the other person was looking for a job, his attitude was very equal.
You are interviewing the other party, and the other party is not interviewing you.
"The test shows that Lin Capital has the goal and motivation to climb to the top of the mountain."
Lin Fan smiled and did not answer, guessing that his soul might have been out of body for too long just now.
When ordinary institutional managers hear about leveraged buyouts, they avoid it like a snake or a scorpion, but they still chat with the other party for a long time and think about it for so long.
In fact, Lin Fan's guess was absolutely correct.
Just now, Li Ying observed Lin Fan for a long time. At first, she saw Lin Fan was suddenly distracted and was embarrassed to interrupt. Later, she was observing carefully.
"Okay, I admit, I have this idea, but the current Lin Capital is not suitable for challenging such a difficult operation method. That is the old man who eats arsenic and thinks he will live longer!"
Li Ying didn't go abroad until she was a teenager, so she naturally understood the idioms. She nodded and said, "You are the boss, you have the final say."
"So, you are willing to join Lin Capital?" Lin Fan looked at Li Ying.
"certainly!"
Li Ying stood up, held out her white, smooth and delicate palm to Lin Fan again, smiled and shouted: "Hello, boss!"
Who can bear this!
Lin Fan suddenly felt like he was entering a foot-washing club with Chen Hong.
He also stood up, shook hands with the other party, and said with a smile: "Welcome to join."
After shaking hands, the two of them sat back on the sofa.
Lin Fan started to talk about the salary issue. It was still the old rule, basic salary plus fund dividend bonus.
The basic salary is not low, with an annual salary of US$500,000, which is higher than the daily salary offered to Li Ying by UTStarcom, but in the PE fund industry, it is at an average level.
In addition, as a listed company, UTStarcom has option incentives for middle and senior management.
Lin's Capital provided Li Ying with a fund profit dividend bonus of ten points, that is, the fund's net profit multiplied by twenty percent and then multiplied by ten percent, equal to two percent.
This treatment, without any preferential treatment because of being a beauty, is on par with Tong Shijie of Axel China and lower than Fu Jixun of Jingzhe Fund.
This is determined by industry experience, reputation, and achievements in the investment circle.
There is no rule without rules, and Lin Fan will not mess up the salary system he has set casually.
If you have good performance, it will increase, but if you don’t have good performance, you will be kicked out.
After listening to Lin Fan's salary introduction, Li Ying was not dissatisfied. On the contrary, she felt extremely excited that she was about to take charge of a US$500 million fund, and her career had once again reached a new level.
The two chatted for almost three hours, and then the time came to noon.
Chen Hong, who had been missing all morning, knocked on the door and walked in. As soon as he entered the room, he found Lin Fan and Li Ying sitting on the sofa, talking and laughing. It was a bit surprising, but not surprising.
"Finally we're done. How was your talk? Let's have a meal together at noon."
Chen Hong found an empty seat on the sofa and sat down, looking at Lin Fan and then at Li Ying.
Li Ying was the first to say: "The discussion is over. It was very pleasant. I have decided to join Lin Capital."
After saying that, she glanced at Lin Fan with a smile on her face, "I would also like to thank Mr. Lin for his trust in giving me the opportunity to manage such a large-scale fund."
Chen Hong grinned and looked at the little brother opposite him thoughtfully. What's your attitude? Don't you think he's too young?
Lin Fan didn't bother to pay attention to Chen Hong, who was spreading pornography with his eyes, and said, "Let's go, let's go have dinner together!"
"good!"
Li Ying answered, picked up her bag, stood up, and walked in front.
Lin Fan was hugged by the shoulders by Chen Hong, who was walking at the end, and then the latter started to say some random things to slander his innocence.
"Am I that kind of person?" Lin Fan whispered.
Chen Hong pursed his lips, "It's hard to say!"
After saying that, Chen Hong ran away with a smile and rushed to the front to press the elevator button, receiving a thank you from Li Ying.
Now it was Lin Fan's turn to pout. Just now he told himself to be more careful, but in the end he behaved like this?
"Hey, brother Chen Hong, your family lives nearby. Can you please call your younger siblings too?"
Chen Hong, who was greeting Li Ying to enter the elevator, suddenly froze when he heard this.
He felt that Lin Fan had really wronged him!
Lin Fan and Chen Hong's sad little eyes collided, smiled and patted each other's shoulders, hugged the reluctant Chen Hong, and entered the elevator together.
Seeing the two men hugging each other and entering the elevator, Li Ying smiled, moved her steps slightly, and moved to the side to make room.
After Lin Fan confirmed several fund management candidates, Rao Lei, who had been busy for several days, finally returned.
"Mr. Lin, we found it!"
With a burst of hearty laughter, Rao Lei walked into the hotel office with a smile, threw his handbag onto the sofa, and sat down next to each other.
"Looking at the office? Where is it?"
Lin Fan stood up and walked towards Rao Lei with the wolfberry tea.
"Guess it?"
Lin Fan laughed and said, "The Demonic City is so big, how could I have guessed it? Stop being so pretentious and tell me quickly."
"Far away, yet so close!"
Rao Lei raised his chin and looked out the French window.
Lin Fan followed Rao Lei's line of sight and saw the bustling Lujiazui on the other side of the Huangpu River. Rows of buildings stood there, including two super-tall buildings that stood out straight into the clouds.
"opposite?"
Lin Fan walked to the floor-to-ceiling window, looked at the other side with a teacup in his hand, and asked softly.
Rao Lei stood behind Lin Fan and said with a smile: "What if? If a financial company doesn't settle in Lujiazui, then why not go to Chongming Island to work?"
"Which one?"
Lin Fan nodded. Lujiazui was the only option. The financial companies were all crowded together and it was very lively.
"It must be the tallest building. The pagoda calms the river monsters and attracts wealth and treasures."
"Come on, take me to see you."
Lin Fan put down the tea cup and dragged Rao Lei, who had just returned, out again.
When they got downstairs, the two got into a brand new black Bentley. Zhang Chenguang drove the car, which he had just bought a few days ago, and drove out smoothly.
The journey was not far, just a few kilometers. After driving for more than ten minutes, we arrived at our destination.
After getting off the car, Lin Fan straightened his suit and then looked up.
The 420.5-meter Jinmao Tower can be reached at a glance. Its outer body is made of lattice cladding made of aluminum alloy tubes, so it looks like a tower from a distance. In fact, American designers drew inspiration from Xi'an when designing.
The traditional Chinese architectural style of the Big Wild Goose Pagoda injects this strong Chinese element into Jinmao Tower.
As the second tallest building in Shanghai after the Oriental Pearl Tower, Jin Mao Tower can be regarded as the landmark center of Shanghai. It is ranked among the tallest buildings in China and even in the world.
Lam Capital's Magic City office is chosen here, which is not out of place and is in line with the company's brand tone.
Just imagine, sitting on a chair in the office, holding a glass of red wine, and watching the waves of the Huangpu River through the floor-to-ceiling windows~
Lin Fan is quite satisfied with this location because the scenery is much better than that of his office in the capital.
After Zhang Chenguang parked the car under the direction of the security guard, the three of them walked into the bright hall together.
The hall is very high and magnificently decorated. People coming and going are all well-dressed and dressed as elites.
Rao Lei ran to the front desk and contacted the property management company.
Lin Fan stood behind and looked around casually.
"Go away and don't come to me again!"
"Sissi, can we go out and talk?"
"I have nothing to say to you."
…
A young woman with a graceful figure in a tight-fitting gray suit was pushing and arguing with a young man in the lobby, and the voice was not quiet.
This scene attracted countless passers-by, including Lin Fan.
After all, people all over the world like to watch the fun! Not just the Chinese!
"Rosie, what's wrong?"
A man in a suit, about forty years old, with a fat beer belly and slight baldness, trotted over.
"Mr. Wang, it's nothing."
The woman turned sideways, and Lin Fan could see clearly now. She was a pretty girl with red eyes, and she seemed to be crying.
"Let's go!"
The girl looked at the boy again, and then left without looking back.
As the girl walked away, Lin Fan finally saw the boy's face clearly.
The other party was wearing a T-shirt and shorts, which looked a little out of place with the surrounding environment.
Wearing a pair of glasses, his hair was as messy as a chicken coop, and he looked childish.
The bald man glanced at the boy, said nothing, and left.
When the fun was over, all the passers-by who had just stopped to watch also left. Only the boy was stuck in the hall like a log, motionless, looking lost.
At this time, Rao Lei and Zhang Chenguang had already communicated with the property manager, and a beautiful property manager in uniform and stockings stood waiting with them.
"Let's go, it's not a good habit to keep a lady waiting for too long!"
The beautiful female property manager smiled at Lin Fan and made a "please" gesture, "Mr. Lin, please come this way!"
Inviting the group of people to follow her, the female property manager swiped her card, and after all four people had passed, she was the last one to pass through the turnstile.
The same goes for getting in the elevator. She stood at the door and waited for all four people to go in before she was the last one to go in. Her etiquette was impeccable.
The elevator in Jin Mao Tower was very fast and it reached the 49th floor in a short time.
As soon as I got out of the elevator, I saw a spacious and high-end office in front of me.
The female property manager swiped her card and let Lin Fan and the other four walk into the office behind the glass door first. She walked in last and then began to introduce them.
"Our Jinmao Tower is an intelligent high-end building that integrates office, business, hotel and other functions. It has a total of 91 floors, 3 floors underground and 88 floors above ground.
The 1st and 2nd floors are the foyer and lobby;
The 3rd to 50th floors are spacious and bright column-free spaces that can accommodate more than 10,000 people working at the same time;
Floors 51-52 are the mechanical and electrical equipment floors;
Floors 53-87 are the world's tallest super five-star Jinmao Grand Hyatt Hotel.
One worth mentioning is the 56th floor. From this floor to the top of the tower, there is a "sky atrium" with a diameter of 27 meters in the core and a clearance of 142 meters that can allow sunlight to refract in through the glass.
Surrounding the atrium are 555 guest rooms of various sizes and styles and various Chinese and Western restaurants;
The 86th floor is the Entrepreneurs Club;
The 87th floor is a sky restaurant;
The 88th floor, 340.1 meters above the ground, is currently the highest tourist floor in China, with an endless stream of tourists every day. 鵵婲小哾网
However, there is a separate elevator leading to the 88th floor, so settled companies do not need to worry about crowded elevators or disruption to their work."
The female property manager was very talkative and had a very nice voice. She kept introducing the four of them, and she especially liked to get close to Lin Fan.
Lin Fan took a look at the office. It was well decorated. There were tables, chairs, benches, etc., and the office area was also separated. With a simple modification, it should be ready to move in.
"How big is the area on this floor? What kind of company was it before?"
After Lin Fan finally took the initiative to ask, the female property manager smiled and replied: "This office on the 49th floor has an area of 2,500 square meters.
It used to be the office of Huaying Securities. They moved to the mid-low area some time ago, and the place has become vacant.
If Lam Capital wants to settle in Jin Mao Tower, this and the 50th floor are the most suitable.
Although the rent is a little higher than that of mid- and low-rise buildings, working here allows you to have a panoramic view of the beautiful scenery of Shanghai. The working environment is absolutely impeccable, which is a kind of enjoyment."
Seeing the intoxicated look on the landlady's face, Lin Fan smiled, looked at Deng Fenghua who was in a daze and patted his shoulder, "What's wrong?"
"nothing!"
Deng Fenghua shook his head repeatedly.
The property manager took Lin Fan around the office and introduced him as he went.
After the transfer was completed, the female property manager asked: "Mr. Lin, would you like to go to the 50th floor to have a look? That is the highest floor of the office area of our building."
Lin Fan waved his hand, "No need, just decide on this floor.
There are fifty avenues and fourty-nine heavens. If a person escapes one of them, that line is the secret of heaven."
After his rebirth, Lin Fan was still a little superstitious about this thing. He felt that the forty-ninth floor was quite good, and it was better not to fight for the fifty-ninth floor.
Then, Lin Fan arranged for Rao Lei to sign, while he took Zhang Chenguang and Deng Fenghua to the sky restaurant on the 87th floor for dinner.
The landlady hesitated, looked at Lin Fan several times, and left with some reluctance.
Today I finally met the real domineering president, but she didn't fall in love with her and wasn't even interested in taking a second look.
As a landmark building, all companies entering the building are subject to qualification review.
Two days ago, Rao Lei came here and submitted the qualification materials of Lin Capital, which led to several days of discussion in their property department.
