"Because Lotte is large enough, the data capacity can meet your needs." Xiao Jie said, "The price-to-earnings ratio of companies with slightly larger sizes in the market has exceeded 140, while it is only more than 20, and the difference between the two is nearly 7 times. Even if Lotte is valued based on the industry's usual price-to-sales ratio, the price-to-sales ratio of other rental networks is 7, and Lotte is 4.9, which is still underestimated."

Xiao Jie told Guan Sha that Jin Quan had conducted detailed due diligence on Lotte House Rental Network.

"Lotte has a strong control over both the intermediary institutions and the rental group," said Xiao Jie. "For example, in terms of the authenticity of housing sources, it has done a good job. Consumers have fewer complaints about Lotte on major complaint platforms."

"What type of complaint?" Guan Sha was curious.

"For example, malicious deduction of margin, fake housing, or fake intermediary information, etc. In short, the number of complaints from Lotte in this area is only one-third of the same as those of its peers."

...

"Rooms has strong control over both ends, and the cooperative network." Jiang Yifan said to Xiao Jie.

Acn Cooperate Network (agent    cooperate network) refers to a cooperation model in which the same brand or cross-brand brokers participate in a transaction in different roles under the premise of complying with the rules of full sharing of housing information, and after the transaction is completed, the commission share is divided according to the commission ratio of each role. It is the first implementation model of the symbiotic economy in the field of residence services.

The core of the acn cooperation network is to refine the entire service chain and then allocate commissions based on the broker's contribution rate in each link.

For example, in a transaction, there are roles such as "house entry", "house maintenance", "customer spare part", "house key person", "house surveyor", "customer source introduction", and "customer source dealer". Brokers in the cooperative network can obtain final profits through contributions from any link.

There is no doubt that the birth of ANC has improved the efficiency of broker cooperation, sharing internal information including housing information, transaction information, housing prices, activity volume, and the dynamics of each owner with the outside world, allowing buyers and sellers to make decisions after transparent data comparison.

"Acn is similar to the US mls, which is multi    listing     system." Jiang Yifan told Xiao Jie, "There is a company called zillow real estate agency platform in the United States. Its mls system has been recognized by capital in the past two years. The stock price has increased by 254.99% in one year."

"Yeah." Xiao Jie nodded, ", Is Lotte any other advantages compared to Aixin from Dianhui?"

"94% of Aixin's revenue is online marketing service income, and the commission income generated by transaction services is only 6%. Lotte is different. Its revenue composition is all commissions generated by new houses, second-hand houses and other transactions." Jiang Yifan replied.

"So Aixin is supported by advertising business?" Xiao Jie asked.

"Yes, Mr. Xiao." Jiang Yifan said, "At present, it is purely based on advertising business to support a long-term open platform for real estate brokers. This has not been passed in developed countries, so Aixin's business logic needs to be confirmed in the future."

"Continue talking." Xiao Jie said.

"From the publicly disclosed prospectus, Aixin related transactions are much larger than Lotte. In 2020, it has transactions with many affiliates for technical service fees."

...

If it were Guan Sha before, she wouldn't understand the conversation between Jiang Yifan and Xiao Jie at all. However, since she started a business, she has already picked up the knowledge she gave to the school. In addition, she has read books on entrepreneurship and capital markets these days, so Guan Sha understands what it means to have related transactions.

The advantage of related transactions is that they can save a lot of transaction costs in commercial negotiations and other aspects. The group level can use administrative power to ensure priority execution of commercial contracts, thereby improving transaction efficiency.

The disadvantages of related transactions are also obvious.

Since the related party can use administrative power to match the transaction, it is possible to cause unfair situations such as the price and method of the transaction under non-competitive conditions, which infringes on shareholders or part of shareholders' rights and interests, which can easily lead to damage to the interests of creditors.

In short, if from the perspective of investors, if a company has an associated transaction with an excessive proportion, it is a large deduction for valuation.

Therefore, Lian Tianhai’s Aixin Rental Network’s business model is doubtful and related transactions account for a large proportion, so it is naturally impossible for Xiao Jie to become the first choice for mergers and acquisitions.

...

Xiao Jie, who was sitting on the mountain, blew the warm evening breeze and told Guan Sha very relaxedly, "Actually, with Lotte's valuation, we want to ask for more shares and spend a lot of money. I told the investment committee at the beginning of this plan."

"Ah?" Guan Sha couldn't react at once.

"It is the investment committee that raised you 4 million in the beginning. Finally, I said that only by losing money and investing in the right project can we avoid liquidation of funds. Generally, the term of equity investment funds is 4 to 6 years, and 3 years is really too short."

Guan Sha was unbelievable after hearing this. If what Xiao Jie said was true, how long would he have known that Yanzigu Apartment would have reached this point today?

From the beginning of the financing of 4 million yuan, Ye Taodu entered the market, to the acquisition of Lotte House Rental Network, are they all Xiao Jie’s chess step by step?

"so……"

"So I really know the purpose of Ye Tao coming in in advance." Xiao Jie interrupted Guan Sha, "They helped us, and we should help them back, right? In the end, it really doesn't work. I'll buy their part."

"Then you took in my dad's idle real estate... it was also your plan?" Guan Sha asked Xiao Jie.

"Yes, when the three red lines come out, there may be some problems in your family. This is one of the plans. Sometimes, my phone call with your father, in addition to talking about funds and you, will also talk about some of your Guan Hong Real Estate's businesses." Xiao Jie said, "The plan is good, but it is not easy to implement. The amount of funds required is larger than what I originally expected. Moreover, Hu Hai and the others need money at the same time. Even if your father's commercial houses are collected, they still need money for decoration... I have been thinking of a solution..."

Xiao Jie said this and touched Guan Sha's head, "Du Jing did help a lot this time... It was unexpected to me. I sincerely hope that you can always be good friends."

When Guan Sha heard this, she suddenly looked at Xiao Jie meaningfully, "Do you know she likes you?"

"I know." Xiao Jie answered quickly and simply.

"You actually know..." Guan Sha blinked, "Okay, it turns out you have known..."

"Do you want me to tell you that I don't like her, I just like you?"

Guan Sha, who was directly guessing the central matter by Xiao Jie, jumped up immediately and grabbed Xiao Jie's ear, "You are so annoying, so annoying, so annoying! If you like to talk, don't you say it!"

"Stop making trouble..." Xiao Jie said.

"It's going to make a fuss! You see if I don't punish you well when I go back!"

"I'll show you something." Xiao Jie said.
Chapter completed!