Open business day-to-day

Chapter 291 Valuation

As soon as Lin Rui finished speaking, there was a burst of cheers in Changwan Technology. Yang Ming walked over excitedly and held Lin Rui's hand with joy and excitement on his face.

The company has been established for one year, and at the critical moment of life and death, someone is finally willing to invest.

Lin Rui looked at the scene of cheers and excitement, but he felt a little embarrassed.I want to say that you are happy too early, and what makes you tangled and worried is yet to come!

After everyone cheered and celebrated, a group of more than a dozen founders surrounded Lin Rui and came to a small and crude conference room next to them to discuss specific financing matters.

In fact, the matter is very simple, it depends on how much the company is valued, how much it raises, and what rights and obligations it can exercise.

Lin Rui didn't want to make it too troublesome. It's more straightforward to cut the mess quickly.

After sitting down, he took a sip of coffee, looked at a dozen pairs of anxious eyes around him, and Lin Rui slowly put down the coffee in his hand.

He said softly, "Well, let's get straight to the point. It's what you want, and I don't want to argue, it's boring. If both parties are not satisfied with the other party's conditions, we don't need to waste time!"

"What's your valuation on Changwan Technology? You can report it directly after discussing it."

After Lin Rui's words fell, everyone around looked at each other in blank dismay. One of them gritted his teeth and said tentatively, "1000 million!"

Lin Rui had no expression on his face, nodded to everyone, stood up and was about to leave.

Everyone panicked. Now the company is facing life and death. Finally, there is someone who is willing to invest at the most critical moment, and he can't be let go.

Yang Ming walked forward in two or three steps, and said to Lin Rui with an apologetic expression: "Mr. Lin, please give us a little more time, let us have a good discussion, and I will guarantee you a satisfactory answer later. What are your conditions?" Just mention it, as long as we can do it, we will try our best to be satisfied.”

Looking at the tense expressions of the people around him, afraid that he would just leave, Lin Rui nodded and said, "President Yang, you're welcome, but I really don't want to make so many detours."

"What is your final valuation, you can just say it directly. If I think it is suitable, I will accept it. If it is not suitable, the transaction will not be righteous, and even if we cannot reach a cooperation, it will be fine."

Although this sentence sounds good, but combined with the current actual situation of Changwan Technology, the other party has no room for bargaining.

On the one hand, the company has gone bankrupt, and on the other hand, it has severely lowered the valuation, which meets the expectations of the other party. It is self-evident how to choose.

Even if you smash your teeth and swallow it in your stomach, it is still a way to survive, otherwise the company will be gone.

Looking at the other party's group, they hurried out of the meeting room and discussed in a hurry.

Lin Rui was actually a little embarrassed. At this critical moment of the other company's life and death, he was in control of their life, and bargaining did not make much sense.

To live or to die, that was a choice, but they had no choice.

If you want the company to continue to survive, you can only raise funds.As for the final valuation, it depends not on how much they negotiated, but on Lin Rui's psychological expectations and bottom line.

If Lin Rui directly valued their company at 100 million, and took out 100 million to account for 50.00% of the shares, the company could barely tide over the difficulties.

They may be very entangled and hesitant, but after all, they can keep the company and the equity in their hands, and will not become waste paper or even debt.

In the future, as long as the operation is good, the value will increase rapidly. It is self-evident how they will choose in the end.

Of course, Lin Rui still can't do this to this extent, so he still has to leave some room as much as possible, and let them accept it within the maximum range they can bear.

After all, we still have to rely on them to wave the flag and shout, and we can't squeeze them too hard.

After a long time, Yang Ming and his group finally came to the meeting room again, and looked at Lin Rui who was sitting there all leisurely, sipping coffee and playing with his mobile phone.

Yang Ming said politely: "Boss Lin, we have discussed it!"

Lin Rui put away his phone and said with a smile, "Mr. Yang, please tell me!"

Yang Ming took a deep breath and said, "Boss Lin, we plan to value Changwan Technology at 500 million and raise 100 million."

Lin Rui smiled and said, "It's not impossible to have a valuation of 500 million."

Hearing Lin Rui's words, everyone immediately became happy, even Yang Ming was also very happy.

But it was obviously too early to be happy, Lin Rui changed his tone, and then said: "However, the 500 million valuation I mentioned is a post-investment valuation, not a pre-investment valuation."

Everyone looked at each other in blank dismay, and one person shouted: "If after you invest 100 million, our company's valuation is only 500 million, isn't our company's pre-money valuation only 400 million?"

Everyone hesitated immediately.

What Lin Rui wants is not only a 20.00% stake, but also a pre-investment valuation of 400 million. Are you thinking too much?

Taking a sip of the coffee in his hand, and looking at everyone, Lin Rui said softly, "Based on the current situation of your company, is 100 million enough?"

Yang Ming thought for a while and said, "Take out 50 yuan to repay the loan, and the remaining 50 yuan will be used for the company's daily expenses. It should be able to maintain the company."

Lin Rui shook his head and said, "If your goal is just to keep the company going, it's not to show the momentum of a start-up company, dare to fight, be full of energy, and seize the opportunity to grow the company."

"Then I have to hesitate whether I really want to invest in you!"

Yang Ming became anxious when he heard this, and quickly defended himself: "Mr. Lin, since our company was established, we have always been full of hard work and energy. Please rest assured."

"It's just that the company's funds and strength are limited after all. We have learned the lesson from last time and dare not make rash advances. We can only stabilize the company's situation first and then seek development."

Lin Rui smiled and said: "The root cause of all this is that there are too few funds in hand, so why don't you melt more this time!"

Raising more capital means that more equity needs to be taken out. Yang Ming looked at Lin Rui with some hesitation and said, "Boss Lin, what do you mean?"

Lin Rui smiled, stretched out two fingers and said, "I voted 200 million, accounting for 40.00% of the company's shares."

As soon as the voice fell, the meeting room fell silent again.

Everyone naturally wants to raise more money, but if it is calculated based on Lin Rui's investment of 200 million, accounting for 40.00% of the shares.The pre-investment valuation of the company was only 300 million, which was really unacceptable for a while.

Yang Ming pursed his lips, and said to Lin Rui with a wry smile: "Boss Lin, can the valuation be raised a bit more, and it doesn't need 200 million, just 100 million."

"Based on your post-investment valuation of 500 million yuan, we will raise 100 million yuan, counting your 20.00% stake, and our company's pre-investment valuation will be 400 million yuan. What do you think?"

As he spoke, he looked at Lin Rui cautiously, fearing that he would be unhappy, so he left directly.

Lin Rui didn't leave, nor did he intend to compromise on this, and said with a smile on his face: "Mr. Yang, I have already said that I invest in you because of your drive and indomitable spirit, and I want you to catch it." opportunity to grow the company.”

"If your purpose of seeking financing from me is only to let the company barely survive, it will be precarious, and to continue the company's life."

"Then why did I invest in you, what outstanding achievements and highlights worthy of attention do you have?"

As soon as this sentence came out, the surroundings were suddenly speechless, and there was really nothing outstanding about Changwan Technology.There are just too many startups of this type.

Yang Ming quickly echoed: "Boss Lin, what you said is right and makes sense. We must seriously reflect on it."

Lin Rui went on to say: "Of course our team is good, and this is one of the reasons why I invested in you."

"I know that you have just encountered setbacks, but what are setbacks? Setbacks are the food for success. For example, the mobile game project, I heard that you have already planned to give up, but is this the correct way to deal with it?"

"I also played the mobile game you developed just now. Although the playability is indeed not strong, it has its own characteristics. Moreover, no game is perfect as soon as it is made. This requires your continuous optimization and improvement."

"If you want me to invest in you, you can't give up on mobile games. Even if you don't start a new project, you still need to invest manpower and material resources to continuously optimize and update your current mobile game."

"As for the browser game projects that you currently have advantages in, I heard that you plan to cut one. I think that instead of cutting it off, you need to increase investment in this area to expand your advantages in this area."

"With so many projects and jobs, if you raise 100 million yuan, you will only have 50 yuan left after repaying the loan. What can you do?"

Lin Rui's words really hit the hearts of many people present. Many people in the company didn't want to give up mobile games, and wanted to increase investment in web games, but the company's strength was there, so they had to reluctantly cut it off.

Except for matters about company valuation and equity, Lin Rui really spoke out what everyone wanted.

Looking at the whispers all around, Lin Rui continued: "If the 200 million funds are not enough, I can offer another option."

Hearing his words, everyone immediately looked over expectantly, hoping that he could offer a better offer.

I just saw Lin Rui smiled and said: "How about Weiyang Technology investing 350 million, accounting for 50.00% of the shares? The post-investment valuation is close to 700 million."

When everyone heard the investment of 350 million, they were overjoyed at first, but it was difficult for them to accept the need to account for 50.00% of the shares, which was equivalent to losing control of the company.

Yang Ming looked at Lin Rui, hesitantly said: "Boss Lin, this... this is not very good, it's not that I don't believe you, but we need to maintain control of the company."

Lin Rui smiled and said: "It's understandable, in fact, even if we Weiyang Technology got a controlling stake, we didn't have much energy to pay attention to you."

"Well, let me make another condition. This is the last condition I set, and it is also the best one. Weiyang Technology invested 300 million yuan and obtained 40.00% of your company's equity, how about it?"

In fact, this is the condition that Lin Rui really weighs. The first two are not so much smoke bombs, they are similar.

If the conditions are harsher first, lower the opponent's expectations, and then offer a relatively better condition, the opponent's psychological defense will collapse a lot in an instant, and the choice is self-evident.

Of course, with Changwan Technology's current situation, Lin Rui can directly and forcefully set a very harsh condition without giving the other party any other choice.

In doing so, although the other party may succumb in the end, there is resentment in his heart, and the future may be full of twists and turns.

Of course, if Lin Rui had just asked for the first two conditions, the other party could not wait to agree, which would disappoint him and lower his expectations for the development of Changwan Technology.

Such an impatient team who can't keep calm and calm when things happen, the future of development is really worrying, but fortunately, they performed well.

As soon as Lin Rui finished speaking, everyone's eyes lit up at the same time. Compared with the first two conditions, the third condition is indeed very generous.

Everyone glanced at each other, although they already wanted to agree, they still hesitated and did not make a statement.

Lin Rui smiled and didn't care. He got up and said, "That's my condition. Choose one of the three and decide for yourself. Of course, this matter is of great importance after all. You can discuss it together, and I'll go first."

Yang Ming quickly surrounded him and said, "Boss Lin, you're leaving now, we can actually sit down and discuss it."

Lin Rui waved his hand and said, "Mr. Yang, in fact, things are not that complicated. My conditions have already been offered, and it depends on your choice."

"If the financing is agreed, I will send a team to your company to do a due diligence. If everything is ok, our financing will be completely completed."

"If you don't agree, it's okay, there is no benevolence and righteousness in business."

"I'll take my leave first!"

Yang Ming wanted to say something more, but Lin Rui waved at him directly and strode away.

Lin Rui drove out of the industrial area, and didn't plan to go back to school, so he went straight home.

Reading books, drinking tea, and practicing boxing at home, I was quite leisurely for a while, and at the same time, I was waiting for the reaction from the other side.

Lin Rui didn't have to wait too long. Yang Ming called at around three o'clock in the afternoon.

"Mr. Lin, hello!"

Lin Rui: "Hello, Mr. Yang, how are you thinking?"

Yang Ming said in a very straightforward tone: "Boss Lin, we have negotiated and agreed that Weiyang Technology will invest 300 million yuan to obtain 40.00% of our shares in Changwan Technology."

Lin Rui smiled and said: "Okay, I will arrange a due diligence team to go to your company tomorrow, I wish us a happy cooperation!"

"Happy cooperation!"

After hanging up the phone, Lin Rui had some joy on his face. Anyway, Weiyang Technology has taken another step in other fields.

But speaking of it, when it comes to investing, sometimes some data is still very confusing.

Whether it is 200 million shares accounting for 40.00% of the shares; or 300 million shares accounting for 40.00% of the shares.

It seems that the shares that have increased to five points have increased by 100 million. In fact, the valuation of Changwan Technology has not increased much.

Based on Changwan Technology’s valuation of 300 million, an investment of 100 million can account for 20.00% of the shares; an investment of 200 million, the shares will become 40.00%, only an increase of 15.00%; an investment of 300 million, the shares will become 50.00%, and only an increase of [-]% ten out of ten.

From the initial investment of 100 million, accounting for 20.00% of the shares, to investing 300 million, accounting for 50.00% of the shares.

With the increase of the total capital and the increase of the shareholding, the investment of the same amount will get fewer and fewer shares.

Based on the investment of 300 million, accounting for 40.00% of the shares, the pre-investment valuation of Changwan Technology is only more than 300 million.

In any case, Lin Rui was quite satisfied that the other party could accept the result.

(End of this chapter)