All round car designer

Chapter 564 Acquisition of Gaoteng

Regarding the acquisition of a map software company, Zhou Fei did mention it to the two of them once when he was in San Francisco. It is about to be put on the agenda, and the acquisition of map software is imminent.

As long as this acquisition is completed, the territory of the entire Feichi Group will be historically perfect, and all the software and hardware conditions for the development of the four modernizations of automobiles will also become complete. At that time, Zhou Fei will be able to mobilize all resources. Rest assured and boldly flex your muscles on the road of four modernizations.

"Has Brother Fei confirmed that it is acquired rather than self-developed?" Jiang Yang asked.

Zhou Fei has already explained the importance of map software applications to Feichi Group very clearly, but at that time he proposed two plans, one is direct acquisition, and the other is self-development. Since Zhou Fei chose the former, it means and gave up the latter.

"This is a cash flow comparison table I asked the finance department to make. In the long run, the cost of direct acquisition is lower, and it can be put into use directly, reducing our waiting period."

With that said, Zhou Fei distributed the flow meter to Jiang Yang and Ma Huafu respectively.

From the comparison of the flow table, it can be seen that the cash flow in the early stage naturally has more acquisition plans, but in the later stage, the cash flow of independent development will increase sharply, and the present value obtained by integrating all the cash flows can directly Acquisition costs are less.

"According to this flow chart, acquisition is indeed a better choice." Ma Huafu put down the documents in his hand, looked at Zhou Fei and continued, "But has Mr. Zhou decided to acquire Gaoteng?"

"It's not that I decided to acquire Gaoteng, but the situation dictates that we can only acquire Gaoteng. At present, among the three major map software in China, Baixun has the highest market share. Naturally, we don't have to think about it. Its parent company will definitely not give up easily, and the only option left is Gaoteng Map." Zhou Fei explained with a smile.

Since we want to acquire, we must acquire a company with complete map coverage. There are not a few small map application companies at home and abroad, but none of these meet Zhou Fei's requirements. After much deliberation, only Gao Teng is the most suitable at this time. that one.

"I haven't paid much attention to the map software market, but I have always used Baixun maps. But I remember that Gaoteng seemed to be second only to Baixun in terms of market share. The news that Tencent is going to acquire Baixun's map application business, if this is the case, I'm afraid it will not be so easy to acquire."

Ma Huafu said with some worry.

After all, the map software market is a small market, and it is not related to cars, so Ma Huafu did not pay attention to this industry.

There is also Jiang Yang who has this kind of worry. Frankly speaking, it will not be an easy task to acquire any company, not to mention that Gaoteng Map is still well-known in China.

"To be precise, now is the best time to acquire Gaoteng Maps. These are the financial statements released by Gaoteng in the past five years. Please take a look first to see if there are any problems in the statements." Zhou Fei took out another copy of the report. The materials were handed to the two of them.

Although Jiang Yang and Ma Huafu didn't come from financial backgrounds, they were also the bosses in charge of one side's business after all, and the simple reports were still understandable.

"In the past few years, Gao Teng's revenue has been declining at a speed visible to the naked eye, and its net profit has plummeted. According to this trend, Gao Teng will probably lose money this year." Jiang Yang said while watching.

"It's not just a matter of revenue, the company's financial leverage is also increasing year by year, and its financial structure has seriously deteriorated. In the past two years, the proportion of debt-to-equity swaps has been very large. It should be that the debt cannot be repaid in time. This is the only way to alleviate the financial crisis. , How did such a well-developed application become what it is today?" Ma Huafu said in surprise.

"Old Ma, does Gao Teng's situation remind you of something?" Zhou Fei asked with a smile.

"It's exactly the same as the Wei Peng car back then, and the financial leverage of revenue is exactly the same. If there is no way to reverse this situation, I'm afraid it's not far from bankruptcy." Ma Huafu replied with a wry smile.

At that time, Wei Peng Automobile was wandering crazily on the verge of bankruptcy, and it was only relying on Ma Huafu to sell assets to survive. It was finally acquired by Feichi Company. The current situation of Gaoteng Map is very similar to that of Wei Peng at that time. Acquisition shouldn't be a problem.

"I have a general understanding of Gaoteng's current situation. Their management has a lot to do with getting into such a predicament. Baixun and Meide Map rely on the parent company behind them, and their business scope has long gone beyond traditional map services. , covering many aspects such as food and tourism, but Gaoteng always insists on unified development and does not engage in diversified operations. Its main business has always been map services, and its market share has gradually decreased. Financial Crisis."

When Zhou Fei was looking for information on Gaoteng Maps, he couldn’t help but feel happy when he saw such a situation. It can be said that such a situation provided a lot of convenience for subsequent acquisitions, not only saving time in negotiations, but also costs will also drop sharply.

From the experience of Wei Peng and Gao Teng, it can also be seen that the change of thinking of the company's management and whether the product structure is updated in a timely manner will greatly affect the company's subsequent development.

"Looking at it this way, it is indeed a once-in-a-lifetime opportunity to acquire Gao Teng." Jiang Yang nodded, "When does Brother Fei plan to make an offer? What is the initial valuation of Gao Teng?"

"When Gaoteng's market value was the highest, its valuation was only one billion US dollars. Now the company's business has declined in an all-round way, and it has fallen into a financial crisis. The market value has shrunk by more than half. I have consulted with investment banks. Gaoteng is now at most It is [-] million U.S. dollars, even if it is a premium acquisition, it cannot exceed [-] million U.S. dollars." Zhou Fei replied.

When deciding to acquire Gaoteng Maps, Zhou Fei had already made relevant preparations, and his valuation was naturally the top priority.

"It cost nearly [-] million US dollars to acquire Human just now, and now we have to spend at least [-] million US dollars. It is also due to the wealth of our Mercedes-Benz family, otherwise we really can't afford so many rounds of mergers and acquisitions." Ma Huafu couldn't help it. Said.

Counting it, Feichi Company has gone through five corporate mergers and acquisitions, and the total expenditure has definitely exceeded one billion US dollars. From the initial acquisition of Wei Peng Motors, to the acquisition of Dafeng's supercar business, each acquisition has brought benefits to Feichi Group. Great benefits come.

"Only the huge investment now can be exchanged for high returns in the future. The [-] million US dollars spent on the Gaoteng map will bring us more than [-] million in output value in the future, so the two cheer up, and the next We have something to do again." Zhou Fei said with a smile.

(End of this chapter)