“Although the size of Ruimin Financial Management is only 80% of that of Yimin Wangjin, its business growth rate is more than 20% faster than that of Yimin Wangjin.
The market value of Yimin Wangjin is currently US$5.5 billion, and Ruimin Financial Management estimates it at US$5 billion, which is not too much!”
Wei Meng, senior investment manager of DCM Capital, smiled and said: "Mr. Zhang, you are joking again. Based on your valuation method, the venture capital company may not be able to continue its business."
Zhang Yida smiled and did not answer. He naturally knew that Ruimin Financial Management was estimated to be less than US$5 billion, and the reason why he offered it at this price was to test the other party's investment intentions.
Wei Meng is Fang Yuhan's former colleague, and they have some friendship. Today, Fang Yuhan invited her to come and participate in Ruimin Financial Management's Series A financing.
Precisely because he didn't understand Wei Meng, Zhang Yida was not going to waste time and tested him first.
Backed by Huimin Bicycle, Ruimin Financial Management is developing very rapidly. It is estimated that it will not be long before its size exceeds that of Yimin Wangjin.
Therefore, the Series A financing of Ruimin Financial Management is different from that of ordinary start-up companies, and the financing scale will be much larger.
When the scale of financing is large, it is easy to have disagreements. Zhang Yida hates wasting time on wrangling.
Everyone is clear about the situation, and we can talk if we can reach an agreement. If we can't reach an agreement, we won't waste each other's time and energy.
Fang Yuhan said to Wei Meng: "Mengmeng, tell me your quotation!"
“The development of Ruimin Financial Management relies too much on Huimin Bicycle. I read your cooperation contract and found that 75% of the operating profits are allocated to Huimin Bicycle.
Ruimin Financial Management estimates that its net profit in 2015 will be at most 200 million yuan, which is a pre-investment valuation of 4 billion yuan based on 20 times PE.
Mr. Zhang, what do you think? If it's suitable, we can finalize it now."
Wei Meng was not a good person either. He quickly discovered the shortcomings of Ruimin Financial Management, which was that the business relied too much on Huimin Bicycles and the net profit margin was also very low.
Zhang Yida also knew the "causal relationship" and adjusted too much profit to Huimin Bicycle, and the valuation of Ruimin Financial Management was pulled down.
"Net profit is low, mainly because Ruimin Financial Management has never done direct business. We are now involved in small and micro enterprise loans.
Once the asset side is established, the net profit margin can be increased."
Zhang Yida tried to refute. In his opinion, the valuation of 4 billion yuan was still too low and fell far short of his expectations.
“But the current situation is that Ruimin’s assets have not yet been established.
Therefore, our DCM can only give this quotation.
I hope you can understand, Mr. Zhang!”
"Okay! Let's do this for today! We will discuss it internally."
Zhang Yida asked Fang Yuhan to see off the guests, and he sat alone in the office and began to think.
"Yuhan, there's no need to send it off, I'll go downstairs by myself!"
At the elevator door, Wei Meng said to Fang Yuhan.
"Okay, let's have dinner together some other time. It's hard for you to run around today."
Fang Yuhan nodded and said apologetically. She knew Zhang Yida very well, and this investment was basically considered a scam.
"It's okay. Differences are inevitable." Wei Meng acted unconcerned and added:
"Let's be honest! The transfer of benefits in the contract you signed with Huimin Bicycle was too obvious.
Even if I reach an investment intention with you, I may not be sure to convince the investment committee."
Fang Yuhan was a little embarrassed. It was Zhang Yida who specifically asked for more profits to be given to Huimin Bicycle. Now that it was revealed, he was indeed losing face. He quickly said:
"Mengmeng, listen to me. In fact, other than this, Ruimin Financial Management's other conditions are still very good, such as user activity level, business growth rate..."
"Yeah, I understand. The elevator is here, let's go first."
Wei Meng waved to Fang Yuhan, turned around and entered the elevator.
"Mr. Zhang, we signed an "unequal treaty" with Huimin Bicycle! Now the valuation and financing have been significantly affected. What should we do?"
After seeing Wei Meng off, Fang Yuhan returned to the office and kept sighing beside Zhang Yida.
"Hey, okay, okay! What a big deal!"
Zhang Yida thought of a good idea and said: "Let's do this! I'll ask Yimin Wangjin to invest in Ruimin Financial Management."
"What about the valuation?" Fang Yuhan asked.
"Based on the pre-money valuation of US$900 million! Invest US$100 million in Ruimin Financial Management."
Including the US$800 million raised from the listing, Yimin Wangjin has more than US$1 billion in cash on its books.
With so much money and no place to spend it, investing in Ruimin Financial Management is not without investment logic. This is called laying out the upstream and downstream industry chain.
Of course, the U.S. SEC is not a vegetarian. Zhang Yida did not dare to mess around and valued Ruimin Financial Management too high.
It is originally related-party financing. If it goes too far, I am afraid that it will be sued by institutional investors.
Ruimin Financial Management was incubated from the earliest Yimin Financial Management. In addition to Zhang Yida, Fan Hongyang and Ding Siyao, Zhenke Fund and Blackshirt Capital also have shares in it.
After the financing is completed, the shares will be changed to:
Zhang Yida:64.8%
Fan Hongyang:4.05%
Ding Siyao:4.05%
Option pool: 8.1%
Blackshirt Capital: 7.2%
Zhenke Fund: 1.8%
Yimin Internet Finance: 10%
Because Zhang Yida holds 47.51% of Yimin Wangjin’s shares, which is equivalent to indirectly holding 4.751% of Ruimin Financial Management. Counting 64.8% of direct shares, the total shareholding is close to 70%.
At the same time, Ruimin Financial Management has also become the fifth unicorn among Zhang Yida’s industries: after Ruixiang Jinke, Huimin Travel, Yimin Online Finance, and Pinduoduo.
DouShi is not considered a unicorn because it has never conducted public financing.
…
"Congratulations to Mr. Zhang! We have another unicorn under our banner."
Zhang Yida glanced at Ding Siyao and said:
"You are also a shareholder, do I have to congratulate you too!"
Ding Siyao laughed and said, "Okay! It's rare to see you flattering me, so I'll take a quick look at you."
"Congratulations to Mr. Ding, your net worth has increased by another 40 million dollars, and you are one step closer to the dream of a billionaire."
"A billionaire woman, haha, she's still far from it."
"It's not far away. Once Yimin Wealth, Yimin Dai, and Ruimin Financial Management are all listed on the market, we'll be close."
As an entrepreneurial veteran, Ding Siyao has shares in several other "Yimin-related" companies except for Huinong Dai's shares, which were exchanged for shares in Yimin Wealth.
"Mr. Zhang, who will be promoted to go public next?"
Ding Siyao asked.
Zhang Yida knew that she was asking about the companies of the Yimin Group, so he said: "Both you and Yimin Dai have entered full profitability. Prepare to go public next year!"
Ding Siyao smiled bitterly and said: "Then we may have to be held back. The profit rate of the wealth management industry is not as high as that of the lending industry."
Zhang Yida asked: "Is there any hope for a net profit of 200 million yuan this year?"
Ding Siyao thought for a while and said, "There should be hope if you work hard."
Zhang Yida frowned a little. This net profit, based on 30 times PE, would only have a market value of 6 billion yuan, and it has just reached the unicorn threshold.
Even this size cannot satisfy Zhang Yida. He continued: "Look for one or two peers in the wealth management industry, and do a wave of mergers and acquisitions before going public to increase profits."
Ding Siyao shook her head and did not agree with Zhang Yida's plan. She explained: "The wealth management industry is a mixed bag, and it is not easy to find clean assets.
With this free time, we might as well do more business planning."
"What layout?" Zhang Yida asked.
Ding Siyao said slowly: "Yimin Wealth currently has many business lines such as fund sales, high-end insurance brokerage, overseas asset allocation, and high-end education.
But these businesses are not particularly high-end!
I want to start a “family office” practice!”
"Family office? The national conditions are different and it is difficult to develop business!"
Zhang Yida knows that this family office basically specializes in serving billionaires and tens of billions.
The family office originated from the great "Domus" (head of the family) in ancient Rome and the great "Domo" (general steward) in the Middle Ages.
In 1882, John D. Rockefeller established the first family office in modern times.
Family offices consider wealthy families and provide them with a variety of professional management consulting and operational services, including: lawyers, certified public accountants, investment management, stockbrokers, insurance agents, banks, and independent trust entities.
The responsibilities of family "assistants" are also assumed by family offices. Services such as planning the education of family descendants, considering family security, charitable arrangements, and estate planning are also within the scope of family office services.
A private bank can take care of your net worth of $1 million; but a family office can take care of your net worth of more than $100 million.
Private banks have now become the main financial management institutions for mainland wealthy people, but their services cannot be perfect. In Europe and the United States, family offices are the best choice for the wealthy and super-rich.
"It doesn't matter. I have found a breakthrough in my business!"
Ding Siyao looked confident.
"You mean, you have already found a customer?"
The threshold for a family office is a net worth of US$100 million. Yimin Wealth has been developing for two years and has three or five such clients, which Zhang Yida thinks is quite normal.
"Yes, we have found a customer." Ding Siyao kept his eyes on Zhang Yida.
Zhang Yida felt that the look in his eyes was strange and said: "You, you are not talking about me, are you?"
Ding Siyao nodded and said with a smile: "You are the chairman, of course you lead by example!
You are a super rich man yourself, and if you make a case, it should be easy to open up the market."
Zhang Yida was stunned and shook his head quickly, saying: "No. I'm not even married yet! This all takes into account family property planning and wealth inheritance."
"Mr. Zhang, please listen to me first. Your career is getting bigger and bigger now, and you really need a "butler team" to help you.
Think about it, if you are all taken down, will Lin Zhenyang and Fan Hongyang follow suit?
These partners of yours alone can basically support the basic business of my family office."
Zhang Yida feels that Ding Siyao has changed a lot. She was still a simple girl before.
Now that I have become a BA, I have learned how to do it well.
"I'll think about it!"
Ding Siyao was not surprised at all by Zhang Yida's reaction.
It is indeed not that easy to make the decision to hand over tens of billions of dollars of assets to others to take care of.