life with stone

Chapter 114 That's it

This meat is all bloody meat. If they can’t feed enough, they don’t want to invest. If they feed too much, if they can’t reach an agreement in the future...

That is really going to intensify the flesh-cutting.

Moreover, the VAM agreement does not mean that it is as simple as a simple bet.

The VAM agreement actually has nothing to do with gambling.

The VAM Agreement was originally translated as "VAM Agreement", or because it conforms to the image of the state-owned culture, it has been used to this day.

However, its literal translation means "valuation adjustment mechanism", which can better reflect its essential meaning, so the issues involved in the VAM agreements we hear every day have nothing to do with gambling.

A VAM agreement is an agreement between the acquirer, including the investor, and the transferor, including the financier, on an uncertain future when they reach a merger or financing agreement.

If the agreed conditions appear, the financing party can exercise a right; if the agreed conditions do not appear, the investor will exercise a right.

Therefore, the VAM agreement is actually a form of options.

The key to a VAM agreement lies in the agreement between the two parties.

I thought for a while, and I asked, "What's your overall valuation of our company?"

Chen Zhengfei said seriously: "Based on the overall project evaluation, we have given a valuation of 15 billion, which is lowered by one level from the previous valuation by yourself. I believe you understand the reason. Your boss's heart disease, It is an uncertain factor, and the health of company leaders is a huge factor for the project."

I nodded, I didn't expect that I was downgraded by one level.

However, there is nothing wrong with this. Even though Chen Zhengfei has that kind of relationship with me, he is capital and wants to eat meat. It is normal to keep the price down.

I said: "I believe that what you are doing must be a long-term valuable investment. Let's make an appointment, within three years..."

Chen Zhengfei immediately stopped, and he said: "Your company was established in 1990, and it has a history of more than 30 years. The older the brand, the higher the occupancy rate in the market, and the higher the value. However, your company has recently The market share for several years is very low, far lower than that of the peers. That is to say, your market is shrinking and your value is passing away. If you have no way to go public in a short period of time, we will improve the risk assessment. In this way, you will You can’t even get investment.”

I took a deep breath. Over the past few years, due to the development of new drugs, Luo Jiaming can be said to have given up market share. New drugs have been developed, but they have not had time to promote them, which has brought a huge vacuum period to the company.

Immediately I said, "We have a new drug..."

Chen Zhengfei said with a smile: "What we want is the result. Your new drug has not yet brought good results, so we cannot make a positive evaluation."

I nodded, and I said, "How long do you expect?"

Chen Zhengfei said with a smile: "One year is our biggest deadline."

I feel terrible when I hear it, one year?It's a bit unbelievable that it went on the market in a year.

Chen Zhengfei said with a smile: "As long as the capital operation is good, it is not impossible to go public within a year. Of course, the premise depends on your operating ability."

I'm under a lot of pressure, one year is really scary, I can't accept this deadline, but Chen Zhengfei's attitude is very clear, it's only one year.

I touched my pocket, found a cigarette, took it out and gave one to Chen Zhengfei, and quickly lit it for him. He waved his hand and said, "If there is a lady around, I won't smoke."

I smiled, I didn't care about him, I have to smoke, I have to relieve the pressure.

This negotiation is not so easy to talk about, because if you agree, you have to pay the price and you have to be responsible.

If there is no way to go public in one year, and I agree, at that time, the loss will really be cut from the body.

Chen Zhengfei looked at me under great pressure, and said with a smile: "There are many ways for a company to go public, such as backdoor, buyout, merger, etc. It's not about listing your company."

I immediately regained my energy when I heard it. I knew that Chen Zhengfei was a master at playing finance. I immediately understood his point.

From what he meant, he just wanted to achieve this investment, but the hard target had to be met.

As soon as he mentioned it, I understood.

I smiled and said: "Okay, one year, just one year, we will bet that Huayang will be listed within this year."

Chen Zhengfei smiled in satisfaction. He was very satisfied with my knowledge.

I immediately smiled and said: "You invest 20.00 million in exchange for [-]% of Huayang's equity. If we fail to go public within this year, then we will return your [-] million investment and pay the interest stipulated by the market. .”

When I say this, of course it is a tentative price reduction.

But Chen Zhengfei smiled and said: "No, no, no, according to today's inspection of your company, we found that your company's talent management structure is very chaotic, and some decision-making opinions cannot be unified. Therefore, in order to protect Our rights and interests, we want voting rights, we must also give voting rights, we also need 20.00% of voting rights.”

I frowned when I heard that, the right to vote was contrary to the result of my private discussion with Chen Zhengfei.

Chen Zhengfei looked at me and said in a low voice: "I think it is beneficial to you personally to give us the right to vote. I am protecting you. You will definitely be our spokesperson in Huayang in the future. However, you The current position is too low, if you have this 20.00% voting rights, it will be a huge protection for you."

Chen Zhengfei's words shocked me. Yes, although I have Zhang Meiru's support in the company, once Luo Jiaming realizes the danger and returns to the company, he will have a huge right to speak at that time. In a word, what should we do?
What Chen Zhengfei said is right, this voting right must be given to him, and, in the future, I will divide the voting rights of everyone's investment, so that Luo Jiaming can no longer talk about it.

I said: "Yes..."

Chen Zhengfei said with a smile: "Another point is that for the failure of the gambling, we don't just ask for a return of interest. We ask that once the company fails to go public, Huayang will return the investment principal and take out [-] million funds to compensate If our investment is only interest loss, we think it is more appropriate to lend money to you, so that the risk will be smaller."

For Chen Zhengfei's words, I have already made up my mind. The [-] million compensation can only be said to take good care of me.

But even so, it is an extreme challenge.

But I know very well that no matter how extreme it is, I can only go against the wind.

I raised my glass and said with a smile: "I can accept this condition, but I hope that your bank can send financial consultants to assist us."

Chen Zhengfei smiled and said, "That's no problem, I can be your advisor personally."

I immediately clinked glasses with him and said with a smile.

"Then it's settled. When the contract is drawn up, we will formally sign the contract..."

(End of this chapter)