Xinghai Machinery Company is developing rapidly, but the acquisition of land for development this time seems to be slow, affecting the progress of the project.

The construction of industrial land is a very long process, and it takes several months no matter how fast it is. However, within these few months, the market changes rapidly. You can make money by selling products this month, but you may not make money next month.

Mu Yang knows that he will not lack technology in the future, and he plans to purchase a large amount of industrial land to build factories, dormitories, and office buildings.

This time, instead of tens of acres to hundreds of acres, the requirement is to reach two thousand acres.

It looks so domineering like Apple's future headquarters.

Setting up such a big place is not just to show off, but for actual needs. But it can also show the company's strength. Nowadays, Xinghai's reputation is too small. Except for valve peers and laser welding peers, who else knows about it.

None of the city leaders came to inspect it.

As for whether it is easy to find industrial land of more than 2,000 acres, there is no need to worry about this at all.

As long as the investment is real and it is a high-tech enterprise, the local government will try its best to help it clear a piece of vacant land.

After industrial land is purchased, it generally cannot be left idle for more than one or two years. It must be invested within two or three years, and the investment (excluding land costs) cannot be transferred if it does not reach 25% of the total investment. If development and construction are not continued, the land must be recovered after paying an idle fee.

Right to use.

The requirements of various local governments are similar.

After Mu Yang plans to buy it, he will immediately ask a design company to design it, and at the same time start leveling the land. Waiting for the construction permit and construction drawings to be issued, he will start development.

He didn't know what he was going to do in the future and what requirements he had for the factory, so he built the factory higher.

For industrial land of more than 2,000 acres, the minimum land investment alone is 600 million yuan. Muyang does not have that much money.

As of November 5, he can use funds, including stocks, which is about 200 million yuan.

Mu Yang was worried about the funding problem. Yang Nian, vice president of Naixue, called him and said that three venture capital firms had recently taken a fancy to Naixue. The one they had initially negotiated with was better, with a valuation of no less than 6 billion yuan.

Whether he agrees to contact negotiations.

Mu Yang mentioned to her that if Naixue didn't reach a valuation of 6 billion yuan, there was no need to disturb him.

Mu Yang didn't think much and agreed directly. He was short of money and wanted to transfer part of the shares and ask her to come back and report the situation to him.

There is a very big difference between financing and share transfer, and it is easy for laymen to confuse them.

He cannot misappropriate the money raised by Naixue to Xinghai Machinery, let alone use it for personal use. It must be used for the development of Naixue.

Of course, it is okay to buy a house or a car in Naixue's name, but when the time comes to sell the car, the money will go to Naxue, not Mu Yang.

If the shares are transferred, for example, if Naixue is valued at 5 billion, and someone wants to buy 10% of his shares, they must pay 500 million yuan to Mu Yang. This money belongs to Mu Yang personally, not Naixue.

You would be a fool to invest this money in Naixue.

Mu Yang also had to pay 20% personal income tax, and he only had 400 million yuan in hand.

Only then can he use this 400 million yuan to invest in Xinghai Machinery Company.

Financing or transferring equity involves adding new shareholders, and the accounts must be clear.

Previously, debt, financing or transfer of shares between the two companies had to be settled clearly before Naixue could do so.

From now on, Mu Yang should not lend money to Nai Xue for development at will, which may cause confusion in the accounts.

Moreover, as the general manager of Naixue, he must give himself a salary, otherwise he will be working for others in vain.

He still understands these details that are easy to overlook.

Venture capital plans to finance Naixue because it wants Naixue to develop better and obtain higher returns.

Regardless of financing or direct transfer of shares, Muyang has to sell the shares, but the latter is a bit troublesome.

The trouble is that venture capital will ask you: Why do you want to "sell" assets at a low price? Are you not optimistic about Naixue's development?

Most venture capital investors invest in people and then invest in projects.

In terms of management and marketing, Nayuki was recognized by venture capital investors who had been observing Nayuki. They felt that the leader was a person with business talent, so they wanted to invest in Nayuki.

Mu Yang thought about the problem from the perspective of venture capital. He wanted to sell part of his shares first to develop Xinghai Machinery Company.

Waiting for the market to sell?

That's unlikely.

The U.S. stock market will not be lifted until one year after its listing. During this period, it does not matter how many times Nayuki's stock price rises, because he cannot cash out. Even if the ban is lifted after one year, he can only cash out 10% through the secondary market within two years. After listing,

Transferring shares privately is a bit troublesome.

When a shareholder holds more than 5% of the shares, he cannot sell the shares privately. After reaching 5%, every time the proportion of the issued shares of the listed company he holds increases or decreases by 5%, a report and announcement must be made in accordance with regulations.

There are other regulations that are not so easy to cash out.

Two or three years later, I don’t know how Naixue’s stock price fell.

Therefore, it is best to cash out before going public.

He has also done some calculations himself. As competitors join in to seize the market, Naixueyue's profits will become lower and lower. If he does not go public, the money he can earn from Naixue is about 2 billion to 3 billion yuan.

Yuan, it will take about three years.

If you cash out everything before going public and transfer Naixue Company, you will earn at least 10 billion yuan. If you use this money to invest in other things, you will make far more money than you will make after going public.

As for other venture capital institutions, it was just difficult to predict that Naixue would depreciate so quickly, and they did not have as many restrictions on cashing out as General Manager Mu Yang.

But how much and how to value Naixue, Mu Yang only had a superficial understanding of it. After learning it, he felt that he was really not a financial person. Too much professional knowledge made him dizzy. It was a bit like a liberal arts student studying physical chemistry.

Since he couldn't improve his financial knowledge through reading the system, Mu Yang felt that he wasn't stupid either, so why couldn't he learn it?

Forget it, don't worry about this anymore, there are specialties in the art.

Moreover, if your financial knowledge does not increase your experience, it is a waste of time.

Yang Nian returned to H City according to the boss's request, and the two discussed Naixue's financing.

It was her first time to be a guest at the boss's house, and the villa was also a shock to her.

The two were sitting in the hall chatting, Song Xuelu was listening like a curious baby, hoping to learn some financial knowledge. She was a sophomore and expected to complete the mechanical engineering course next semester and apply in her junior year.

She has taken the remaining subject exams in the mechanical major and applied to major in accounting or business administration. In the future, she wants to take the CFA Chartered Financial Analyst and Chartered Financial Analyst exams.

Yang Nian told his boss how VCs evaluate the value of a company. Different industries have different analysis methods, and the results cannot be obtained by just patting the head.

But in actual negotiations, just like shopping for groceries, valuation is often the final agreement reached during the bargaining between the two parties.

Mu Yang heard a lot of professional terms and asked: "What is P/E?"

"That's what the price-to-earnings ratio means."

"I heard people say what price-earnings ratio should be used to estimate it." Mu Yang didn't know how to calculate it, and he didn't understand it deeply.

I heard that a P/E ratio of 10 means that it will take 10 years for the investment to pay back.

"PE is not a hard indicator. The valuation methods of VC or private equity can be roughly divided into two categories: one is the absolute valuation method, which uses the expected future cash flow to discount; the other is the relative valuation method. Valuation method, using peer multiples (Multiples) to estimate the company's value."

"We are not an Internet company, so valuation based on the number of MAU users is inappropriate."

Yang Nian talked about some concepts such as price-to-earnings ratio, stock price-to-book ratio, price-to-sales ratio, and enterprise value multiples. Mu Yang was confused. Damn the reading system. He is a complete novice in finance.

Mu Yang simply said: "Mr. Yang, what you said, to be honest, I was confused when I heard it. Just give me a number. What do you think is Naixue's current valuation?"

Yang Nian was stunned for a moment, and when he saw that the young boss also didn't understand, he couldn't help but laugh, and explained:

"Currently, it is conservatively 7 billion yuan. We can ask for 9 billion yuan. Naixue is a catering company, and the profits of this category fluctuate greatly. According to the traditional company method, P/B price-to-book ratio estimation, combined with other factors, this is what I Personal estimate.”

"The growth potential of Naixue is actually not great anymore. We currently occupy three major cities. Many cities are not suitable for opening new milk tea. In other words, opening one would distract our energy too much and is not worth expanding.

At the same time, colleagues have already joined in to share the cake. I think Naixue stores can open up to 200 stores, and any more will cause losses.

VCs will definitely consider the growth rate and upper limit of business scale, and will also consider that Naixue’s profit margin will decline, instead of just calculating the P/E value based on the current profit margin.”

Mu Yang pondered, what she said makes sense, just like Guicheng, it may not be suitable for opening a store. It does not mean that there are no people to consume, but the high-end consumer group is not concentrated enough, the profit will be much lower, and there are very few places that can meet the needs of opening a store.

However, opening one or two stores in a city will bring great difficulties to management, and other costs will increase significantly. The overall cost will be high, and it is not worth developing.

Yang Nian's estimate was somewhat ideal, perhaps taking into account his feelings.
Chapter completed!