Chapter 36 60 million acquisition of Mobao payment
"This is Zhang Yida, Director Zhang."
In the office of the chairman of Ruixiang Technology, Lei Dongming introduced.
Zhang Yida received the Mobao Pay group who came all the way from Chengdu.
Relying on his years of investment and M&A experience and his sharp tongue, Lei Dongming finally reached an intended acquisition agreement with the shareholders of Chengcheng Mobao Payment at a purchase price of 60 million yuan.
Mobao Pay has long been planning to sell due to its dismal performance and losses for three consecutive years.
After some mutual testing and a fierce price war, they finally decided to sell this payment company with a registered capital of 39 million and net assets of 22 million for a price of 60 million.
Now in Zhang Yida's office is the management team of Mobao Yifang. Zhang Yida is going to meet and have a chat before deciding whether to stay or make a major change.
After shaking hands with several people, he sat on the sofa.
Zhang Yida smiled brightly. After getting a payment license for a cabbage price of 60 million yuan, he could easily sell it for 60-1 billion yuan in three or four years. It’s not a loss to make money!
However, Zhang Yida is not particularly satisfied with this management team that has suffered losses for three consecutive years.
So he asked:
"Mr. Yu, how is the situation here with Mo Bao now?
I see that the company has been losing money for three consecutive years, have you ever found out what caused it?"
Yu Cong's face didn't look good. He knew what Zhang Yida meant! If he didn't answer well, he probably should give up his position as deputy general manager!
Sitting upright and dignified, he said:
"Mr. Zhang, Mobao Pay currently has 52 employees, including 25 people in the technical research and development team, 12 people in the marketing team, 8 people in the financial team, and 7 people in administrative and personnel front desk positions.
Mobao Payment has the "Internet Payment, Mobile Phone Payment (National)" payment license issued by the People's Bank of China.
For corporate users, Mobao Payment has built a comprehensive payment platform, covering all fields of B2B, B2C and C2C, providing online and offline payment and clearing services.
Payment products include online banking payment, mobile payment, quick payment, one-click payment, B2B large-amount payment and the Mobao payment code under development.
Mobao Pay's net assets, operating income, and net profit at the end of 2012 were 28.99 million yuan, 15.6 million yuan, and -4.57 million yuan.
Mobao Pay’s net assets, operating income, and net profit in the first three quarters of 2013 were 21.71 million yuan, 12.63 million yuan, and -7.28 million yuan respectively.”
Zhang Yida frowned. The net assets of Mobao Payment have been declining year after year, the operating income is declining, and the losses are also increasing.
I finally understand why the original shareholder sold it. At this rate, the company will probably have negative equity in two years.
Yu Cong saw Zhang Yida frowning and looking thoughtful. His heart tightened inexplicably, and he continued:
“The company has suffered losses for three consecutive years, and the biggest reason is insufficient revenue.
We have calculated that if the annual operating income reaches more than 20 million yuan, the revenue will basically be balanced.
However, the company is located in the southwest, where there is a serious lack of large-scale Internet companies, especially e-commerce and financial companies with transaction needs.
In addition, the company does not have a bank acquiring license, so it can basically only provide payment services to dozens of old customers. It has also insufficiently expanded into new markets, or there is no room for expansion in Chengdu and Sichuan Province.
The above are just a few points discussed by our management, and I would like to ask Mr. Zhang to correct me."
Zhang Yida was silent and silent, his aura was as strong as the abyss and the sea. Yu Cong and his group held their breath and did not dare to speak.
After a while, Zhang Yida spoke:
"Yu Cong, I remember that you have a technical background, right? Who was in charge of Mobao's previous market development and marketing?"
Yu Cong nodded and said:
"Yes, Mr. Zhang, I graduated from Chengdu University of Electronic Science and Technology of China in 2002 majoring in information and communication engineering. After graduation, I worked in Huawei for 8 years and joined Mobao in 10 years.
In the past, Mr. Yin's family was responsible for market development and marketing. Mr. Yin was the majority shareholder, so this area of work was basically arranged by Mr. Yin.
We are mainly responsible for technology development and software operation and maintenance."
Zhang Yida nodded slightly, indicating that he understood. This is also a common problem in many family businesses. All relatives insert themselves into key departments of the company.
It seems that the company's poor performance has little to do with Yu Cong and his team's technical skills.
Zhang Yida tried out the developed software before acquiring it, and it did quite well. There was no problem with the user experience.
The biggest problem is that the marketing department is too old-fashioned and does not know how to adapt. It just sticks to the one-third of an acre in Chengdu and Sichuan Province and does not go out and go nationwide.
What is Internet payment? What is mobile payment?
That is third-party payment that focuses on online payment, online customers, and online business.
How many Internet companies can there be in Chengdu? You have to go to first-tier cities like Beijing, Shanghai and Yangpeng and stab your enemies in the chest.
You have to have the tastiest piece of the cake! There are too many Internet companies in first-tier cities, and winning even one segment of this market is enough to make Mobao’s mouth water.
Zhang Yida then arranged:
"Yu Cong, your next work should focus on research and development, and make the magic treasure payment code as soon as possible.
The R&D department is still located in Chengdu, and you can also stay and work in Chengdu.
But I will move the marketing department to Beijing and reorganize the marketing team.
The original marketing staff were allowed to come to the capital if they were willing to do so, but there was a performance review, and those who failed to meet the standards were asked to leave.
The marketing department can do some work to connect with the business department under Ruixiang. Next, we will focus on developing Internet financial companies.
Ruixiang Technology is developing advertising cooperation at the front, and Mobao is following behind to develop payment work.
Rebuild a payment system with the Internet financial industry as the core.
Next, your tasks are still very arduous. While you are developing the Mobao payment code, you must also consider re-developing a third-party payment system suitable for the Internet financial industry.
In terms of user needs, you can send a few technicians to follow colleagues from Ruixiang Business to visit some mutual financial companies to understand the systems they are currently using. What are the shortcomings? What functions need to be added? What pain points do you want to solve?
In short, in a word, products must fit the market and be built with users as the center.
First, we should conquer the financial sub-industry of Internet finance, and develop vertically, including Internet financial management, Internet loans, Internet insurance and other sub-sectors, and we should fully understand and stabilize it.
Then develop horizontally into other Internet industries, such as e-commerce, games, etc.
Also, the technical team currently only has more than 20 people, and the bench is not deep enough. It is expected that our business will increase in the future, so we will recruit more technical personnel in advance to expand the team.
If the funds are insufficient, I will arrange for someone to inject tens of millions more.
Just set your sights on one goal and complete the software!"
Yu Cong and others nodded happily. Not only were they not unemployed, they were also entrusted with important responsibilities. The new boss would also invest heavily in research and development.
Finally, I can start working hard! The original Mr. Yin had always been obsessed with Sosou and was reluctant to spend money on research and development. Therefore, the product could not be said to be very good or perfect.
Now the new boss is willing to give them greater trust and must make better products to repay this trust.
Next, Ruixiang Technology held a board of directors meeting, and there were major matters that needed to be resolved.
Shen Beipeng and Xu Xiaoming were also present at the meeting.
Zhang Yida put forward a draft resolution of "60 million yuan to acquire Mobao Technology and 40 million yuan investment to increase payment research and development."
This is a great thing to improve Ruixiang's business layout, and it can also increase valuations, enhance the company's concept and story telling.
Of course Shen Beipeng and Xu Xiaoming are supportive!
Therefore, the resolution was quickly passed, the 60 million acquisition money was paid in one lump sum, and Mobao Technology shares completed the change and became a wholly-owned subsidiary of Jingcheng Ruixiang Technology.
The capital injection of 40 million was also transferred to Mobao’s account, which provided more ammunition for the subsequent team expansion and software development.
Mobao's 12-person marketing team ultimately chose only two people to come to Beijing, and all the other 10 people "voluntarily resigned."
Zhang Yida mobilized more than ten elite soldiers from Ruixiang's market and commercial department, together with two people from Chengdu, to form two combat teams.
A team followed the business department of Ruixiang Technology to revitalize existing customers.
Another team went out to first-tier cities such as Beijing, Shanghai, Guangzhou and Shenzhen to find customers to sign contracts.
In addition, because the company's business, departments, and employees are increasing day by day, and with the newly acquired Mobao Technology, the number has almost reached 600 people.
So we rented the 37th floor of Colin Building and diverted some employees to work.
The other is to establish a group company, and the parent company is named "Ruixiang Financial Technology Group".
It has 5 wholly-owned subsidiaries:
"Beijing City Investment and Financial Supermarket Co., Ltd."
"Beijing City 365 Accounting Manager Information Technology Co., Ltd."
"Beijing City Card King Credit Card Manager Information Technology Co., Ltd."
"Beijing City Investment and Finance Media Co., Ltd."
"Rongcheng Mobao Online Payment Co., Ltd."
Touronghui Financial Supermarket Company has Touronghui APP, which includes two products, financial management supermarket and loan supermarket.
365 Accounting Manager Company currently provides accounting services for the 365 Accounting Manager APP, as well as display space and traffic diversion for the advertising products promoted by Toulonghui Company.
Kawang Credit Card Manager Company currently only has the Kawang Credit Card Manager APP, which provides credit card management services and directs advertising for Toulonghui. The Credit Card Supermarket section is already under intensive development and will be launched soon.
Touronghui Media Company has launched Touronghui Finance APP, as well as public accounts, Weibo, forums, Zhihu and other accounts to provide financial information news and information services. In addition to guiding Touronghui advertising, it will also launch an Internet financial company's Information, data access, rating and other services. Focus on new financial fields.
Mobao currently does not have an APP, only a few payment interface software. Currently, it focuses on B2C business in the Internet financial industry. When it needs to do C2C business, it will launch relevant functions and graft them onto the Touronghui APP.