Zhang Sanshi asked the most important question, which related to Gaoling Capital's shareholding ratio in the new company after the merger.
"USD 5.7 billion, PetNet 3 billion, Dogford's 51% stake 1 billion, the hospital plus medicine totaling 1 billion.
In addition, we also hold 5% shares of the American pet e-commerce platform Chewy, which is currently valued at more than 10 billion US dollars;
In addition, we also invested in Vet First Choice, a company that provides online pharmacies and home delivery services for veterinarians, and merged with Henry Schein's pet health business unit to form Covetrus.
The current market value of Covetrus is US$4.5 billion, and we hold 4.6% of its shares, worth approximately US$200 million.”
These data are not without purpose, and Lu Fenghai feels they can withstand scrutiny.
Zhang Yida originally misappropriated funds from his account to invest in these two companies. So far, the rate of return has been four to five times.
This is still far from the 7-9 times he expected, especially since this company, the first choice of veterinarians, actually chose to merge and go public, which caused Pate Holdings' shareholding to be reduced a lot.
Only then did Zhang Yida remember that he seemed to have remembered something wrong, especially the merger.
When he first heard that Veterinary First Choice was only valued at US$500 million, he decisively invested heavily in the company, resulting in a reduction in investment in Chewy.
Originally, he could make more money by investing more money in Chewy. After the company went public, its stock price continued to rise, and it had the potential to rise to US$20 billion.
After Covetrus went public, its stock price was weak, losing ground and even falling below the issue price.
Covetrus was officially listed two months ago. In addition to grabbing a small amount of cash on the day of listing and staking several million US dollars, Zhang Yida was already making arrangements to withdraw and was preparing to reduce his holdings of all the company's shares once the lock-up period was over.
Although Zhang Yida was a little upset, Lu Fenghai was still very satisfied with this investment result.
There was once an article on the Internet praising Zhu Xiaohu as a unicorn catcher.
Then a series of controversies arose, and finally it was unanimously agreed that the title of "Unicorn Breeder" should be awarded to Zhang Yida, an investment expert who was delayed by starting his own business.
Lu Fenghai felt that this title was not an exaggeration at all. Zhang Yida definitely had the ability to turn stone into gold. He simply raised unicorns like poultry and randomly invested in several projects, and all of them turned out to be unicorns.
He looked at Zhang Sanshi, guessing that this man might have some questions.
The latter looked at him with a smile and said: "It's pretty much what I expected, but some details still need to be negotiated."
This company is the first choice of veterinarians. Blackshirt Capital and Gaoling Capital also participated in the investment, but the time was one year later than Zhang Yida, and the return rate was much lower.
Zhang Sanshi highly praised Pate Holdings' various business data and even its foreign investments and shareholdings.
It just involves his own interests. As an investor, he must count every penny he spends.
Zhang Yida smiled and joked, "It's only over 5 billion. The valuation is very reasonable. What are we still negotiating for? It's such a big deal."
Zhang Sanshi smiled at Zhang Yida, "No, you can make the decision as you please with your own money, and I'm just a wage earner hired by capital."
Zhang Yida smiled and said nothing. This was too modest.
Since its establishment in 2005, Gaoling Capital has earned profits in the order of tens of billions of dollars. Zhang Sanshi and his partners have earned at least billions of dollars in dividends alone.
As the biggest boss, Zhang Sanshi definitely got the most, and the other partners followed suit.
An investor like him who is proficient in investing will also use the dividends received to make some investments, and money makes money.
In last year's Hurun rankings, Zhang Sanshi's net worth was as high as 2.9 billion U.S. dollars. This figure is most likely not fully calculated.
Zhang Yida put away his joke and gave Lu Fenghai a look, signaling the latter to continue talking.
Lu Fenghai nodded, and then began to analyze sectors one by one, "Based on the GMV valuation method, Pate.com multiplied this year's 30 billion GMV by 0.6, and the valuation is about 18 billion yuan, which is no problem;
Dogfud's net profit last year was 520 million yuan. Based on a price-earnings ratio of 25 times, its valuation is 13 billion yuan. 51% of the equity is 6.63 billion yuan, or about 1 billion U.S. dollars;
There are 284 pet hospitals in total, all of which are chain pet hospitals with a construction cost of more than 5 million yuan.
Ruipai Pet has more than 300 pet hospitals, with a valuation of US$800 million.
If compared with them, there is no big problem in Petr Pet Hospital’s valuation of US$700 million.
The pharmaceutical business has been established for a short period of time and has not yet achieved great results. The professional agency hired gave it a valuation of US$300 million."
Zhang Sanshi smiled and said: "Okay, okay, I don't have much objection.
But for Gaoling’s assets, Yida, you have to offer me a high price.”
After speaking, Zhang Sanshi took out a document, handed it to Zhang Yida, and said: "Look at the more than 800 pet hospitals controlled by Gao Ling, you can also give a price.
The number of Pate Pet Hospitals is only one-third of ours, so our valuation of US$2.1 billion is not excessive, right?”
Zhang Yida browsed through it casually and found that he knew almost all about Gaoling Capital's financial background.
It covers many medical brands such as Barbietang, An'an, Chongyisheng, Najia, Aino, Chongfuxin and so on.
A three-level diagnosis and treatment system has been established: central hospital-specialty hospital-community hospital.
He rubbed his eyebrows, this old fox couldn't take advantage of him at all.
"Your hospitals are relatively small, and most of them are community hospitals."
Zhang Yida started to find fault. Gaoling Capital was buying and selling, and its hospitals ranged in size from large to small. To be honest, I'm afraid they weren't worth the US$2.1 billion.
"I think it's okay. You see, we also have a very large pet hospital, which is over 5,000 square meters.
There are also specialized hospitals that treat cats and dogs, so they are rich and diverse.”
Shen Beipeng couldn't stand it when he saw the two of them haggling like they were buying vegetables at the wet market.
"Okay, let's hire a professional agency to do the valuation, as much as it is necessary, and less of the bells and whistles."
Shen Beipeng made the final decision, and Zhang Yida and Zhang Sanshi no longer struggled with this issue.
"I see that you also acquired German Junbao. Will this company be merged into it?"
The Junbao Zhang Yida was talking about was a company that dealt in cat litter and pet food, and was acquired by Gao Ling in 2016.
"Surely it will be merged?"
Zhang Sanshi smiled and analyzed, "Look, Mars Group owns dozens of pet food brands. After acquiring VCA in 2017, it owns more than 2,000 pet hospitals.
Where is this? It’s just the beginning, our goal is a market value of 100 billion US dollars.”
Zhang Yida looked deeply convinced and nodded: "Yes, the pet medical aircraft carrier is just the beginning. We will continue to work hard in food and e-commerce to build an aircraft carrier fleet."
Lu Fenghai silently watched from the side as the big guys were showing off, and the words that popped up were either "hundred billions of dollars" or "aircraft carrier". It was simply a show of skill from the masters.
"Gaoling also acquired pet hospital SaaS brand Xiaonuan Doctor, pet hospital financial leasing and supply chain finance brand Tola Pet, and pet supplies chain Kudi Pet..."
Lu Fenghai listened for a full minute before he heard Zhang Sanshi read out the list. They were all companies in the upstream and downstream industry chain of the pet industry.
He finally saw what it means to "buy the entire track", and being rich is really arrogant.
Zhang Sanshi suddenly remembered a company and said: "There is also IDEXX. We bought their stocks from the secondary market and plan to merge them into the new company, which is equivalent to transplanting the relationship.
Are you familiar with this company? It is a giant in the veterinary diagnostic industry, and its CEO is the father of the founder of Veterinary Preferred.
When we first chose to invest in Veterinary Medicine, we also wanted to establish friendship with him.
His father has already expressed his opinion that we will choose to purchase veterinary diagnostic equipment from IDEXX, which will give us the best discount.
IDEXX also has a pet doctor gas station, which is a pet doctor training course. We can also cooperate with IDEXX to improve the level of our company's doctors."
Zhang Yida nodded, "This is no problem."
He found that there were two important targets that had not been mentioned, so he asked Zhang Sanshi: "How will Ruipeng and Biruji arrange it?"