This is the best team: from Ctrip to Home Inns, Hanting I

Chapter 14 Transformation Acquisition (5)
3. Is the acquirer's stock price high?

4. Is the acquisition scale large?
5. How about the financing cost?

At the same time, I also learned that mergers and acquisitions have a great effect on enterprises.Not only to enhance the competitiveness of the post-merger enterprise, but most importantly, to increase the value of the acquirer.Just like Ctrip, if it hadn't acquired Modern Express, its value of more than 3 million yuan would not have been reflected.

However, in my opinion, the most exciting thing about Ctrip is in the process of financing and mergers and acquisitions, talking about mergers and acquisitions while talking about financing.Mergers and acquisitions are for financing, and financing is for mergers and acquisitions.This point is worth learning.

Reminds me of the book How to Marry Bill?Gates' daughter became vice president of the World Bank again" story:

A businessman named Jack, one day, he told his son: "I have found a girl for you, now, you go and marry her!" The son replied: "Dad, I want to marry myself What kind of bride is up to me to decide, and you don’t have to worry about it.” Jack said with a smile: “Haha!
But the girl I'm talking about is Bill?Oh, Gates' daughter! The son cried out: "Huh?"If so, I unconditionally agree! "

At a party, Jack and Bill?Gates said: "Let me introduce you to a good husband for your daughter!" Bill?Gates said: "Jack, stop joking! My daughter is still young, and I don't think about getting married for the time being!" Jack said: "But the young man I'm talking about is the vice president of the World Bank!" Bill Gates Surprised:
"Ah? For such an excellent young man, my daughter can take care of him in advance."

Then, Jack went to the president of the World Bank, and Jack said directly: "President, I would like to introduce a young man to be the vice president of your bank." The president said: "We already have dozens of vice presidents here, enough There are too many! I’m going to lay off people!” Jack said: “But the young man I’m talking about is Bill Gates’ son-in-law!” The president shouted: “Ah? Let's chat!"

In the end, Jack's son both married Bill Gates' daughter and became a vice president of the World Bank.

From the above story to the case of Ctrip, we can fully imagine it.At that time, Ji Qi also used this method to "fool" venture capital and reservation companies.He said to the venture capital that Times Express will be acquired by us immediately, so hurry up and invest in us; at the same time, he said to Times Express that the venture capital money will come in immediately, so hurry up and cooperate with us.As a result, Ctrip not only raised capital, but also acquired a reservation company.

Therefore, what is scarce in today's society is not resources, but the vision and courage to discover and integrate resources.

Many people believe that Ctrip's success is because they encountered a good opportunity.In fact, opportunity alone is not enough. How to leap over the high wall between dream and reality requires extraordinary wisdom and extraordinary courage.

Fifth, the issue of holding must be seriously considered. Holding means that a certain shareholder holds a certain number of shares in the company and controls the company.

There are two types of holdings: absolute holdings and relative holdings.Absolute holding means that a certain shareholder’s shareholding ratio exceeds 50%, for example, it just accounts for 51%. , accounting for only 50%, because among the many shareholders, he holds the largest proportion of shares, and he also holds the right to speak in decision-making.However, the prerequisite is that the other 40 shareholders are not united.

Therefore, to be on the safe side, the founder of the company had better control more than 51% of the company's shares, unless he wants to sell the company.

In this case, Ctrip raised funds three times.In the first financing, IDG invested US$3, accounting for 50% of Ctrip’s shares; in the second financing, five companies including Softbank invested US$20 million, accounting for less than 5% of the equity (maybe 450%); In this case, the Ctrip team can also hold shares.However, in the third round of financing, Carlyle invested US$30 million in Ctrip and obtained a 29% stake in Ctrip.The Ctrip team absolutely cannot hold a controlling stake.

In fact, Ctrip's entrepreneurial team is not unaware that capital has the right to speak. Since they can no longer control the company, they may "leave get out of class" at any time.But this is also their helpless choice, because at this time, the company is still far away from profitability.Rather than dying for holding shares, it is better to give up holding shares and make money.

Speaking of this, on the topic of mergers and acquisitions, let me interject a case about Wahaha being almost acquired by Danone.

In 1996, Hong Kong Peregrine brought in Danone, a strategic partner, to discuss investment cooperation with Wahaha.With the agreement of both parties, Peregrine and Danone established Jinjia Investment Company in Singapore with cash, while Wahaha used the existing factory buildings, equipment and trademarks to jointly establish a joint venture company with Jinjia accounting for 51% and Wahaha accounting for 49%.A few years later, due to the impact of the Asian financial turmoil, Peregrine sold its equity to Danone, and Jinjia Investment Company became the exclusive holding company of Danone.

At that time, Wahaha urgently needed funds to grow and develop, and because they had no joint venture experience, many matters were signed without careful consideration.A few years later, Zong Qinghou (Chairman of Wahaha Group) gained more experience, felt that he was at a disadvantage, and began to feel unhappy. He established dozens of non-joint venture companies outside Danone's back, and all the trademarks used were Wahaha. The strange thing is that Danone clearly I don't care if I know it.

Later, seeing that these joint ventures started to make money, the total assets had reached 56 billion, and the annual profit had reached 10 billion. This time, Danon was upset. He thought he was the boss of Wahaha.Therefore, Danone forced to buy Wahaha's non-joint venture company with 40 billion yuan, and if they did not agree, they would sue Zong Qinghou for illegal use of the trademark.

In order to gain control of this brand, Zong Qinghou had to fight a lawsuit with Danone for many years.

Although Zong Qinghou won the final victory by relying on the "yin-yang contract", he snatched the Wahaha brand back from the hands of the French ghosts.However, the price Zong Qinghou paid in this lawsuit was really too high, he won the lawsuit and lost his reputation.

Therefore, for entrepreneurs in financing, they have to carefully consider the issue of holding shares.

Application 1985. Which product is better? Zhang Jun, a native of Chaozhou, came to Shenzhen in 2009 and has been opening a department store to sell daily necessities.After years of hard work, he has opened the eighth supermarket chain in the customs, and in [-] he is planning to enter the market outside the customs.

Zhang Jun knows very well that the operation of supermarkets relies on fast moving consumer goods.Because of this type of product, the demand is large, the purchase frequency is high, and the purchase is easy.Especially beverage series products account for a large proportion of the store's turnover.

However, there is also a downside to selling products such as beverages, that is, the gross profit is too thin.Therefore, in order to save costs, Zhang Jun decided to create a "Weimei" brand himself, find a manufacturer to help him produce it, and use his own channels to sell it.

This series of beverages includes the following five categories of products.

1. Tea beverages: green tea, jasmine tea and iced black tea, etc.

2. Herbal teas: under fire tea and slimming tea, etc.

3. Soy milk: black soy milk, chocolate soy milk and coconut soy milk, etc.

4. Thick pulp: Maixiang thick pulp, corn pumpkin thick pulp and red bean thick pulp, etc.

5. Fruit juices: orange juice, grape juice, lemon juice, fruit and vegetable juice, etc.

Now, Zhang Jun intends to select one category from the above five categories of products to focus on promotion.If you were his friend, what kind of products would you recommend him to focus on?Please give specific reasons based on the current market demand.

(Refer to page 220 for the answer) 2008. How to shape the selling point of goat milk On December 12, 8, Li Jun, a high school classmate, called and said that he had changed his career to sell goat milk (liquid milk) in the fast moving consumer goods market. He asked Can I help him plan it.The following is the transcript of the conversation I had with him.

Staff: First tell me why you want to enter this industry?

Li Jun: The melamine milk incident has made people talk about "milk" discolored.Although the milk market has shrunk, the demand in this market still exists, and there is an urgent need for milk substitute products, so it is impossible for people to skip breakfast.I personally think that this is a very good market opportunity for goat milk (liquid milk) before the milk (liquid milk) market recovers.

Staff: Well, let’s talk about your milk source and product technology.

Li Jun: I am looking for a ready-made goat milk factory to do it for me.

Staff: As far as I know, people have been doing goat milk in the fresh milk market, but it has not been done very well, maybe because the technology of removing mutton needs to be improved.

Li Jun: Don't worry, the factory I'm looking for has top-notch technology.

Staff: Has the product been registered?Are you ready to advertise on TV?

Li Jun: The trademark has already been settled.We are not going to advertise, we are going to do promotional activities at the entrance of the supermarket, free tasting.

Staff: How many people are you doing together?

Li Jun: Me; my wife, she used to be a milk salesman in a shopping mall; my second brother, he knows people from the goat dairy farm; my brother-in-law, he can drive and hired a few helpers.

Staff: I don’t know about the others, but I know that you used to sell women’s care products... According to the phone recording above, may I ask: Can Li Jun start this market, and what are the reasons?If you were the marketing director, how would you operate?
(See page 223 for the reference answer) Growth by Leaps and Bounds Ctrip is not the discoverer and pioneer of this industry. It also survived by integrating traditional industries with network technology.But what is surprising is that Ctrip, like a dark horse, quickly became the leader in this industry.How did Ctrip advance by leaps and bounds in the "winter" of the Internet and become the number one in the industry.If you want to know this, you must first understand what Ctrip's opponents did wrong, and what Ctrip did right.

Quotations shopping mall insights 1-5: If you have good performance, the boss is very polite to you, and you earn more RMB, life is very meaningful, but I tell you: brother, there is a sentence to keep in mind, selling is ability, selling Not going out is bullshit.
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After reading Wu Hai's encouragement to promote the Ctrip card salesperson, I feel that I am not afraid of being used, but I am afraid that it will be useless.Knowing this works for everyone.
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After reading Wu Hai's encouragement to promote the Ctrip card salesman, I feel that a sheep leads a group of wolves, and all of them become sheep; a wolf leads a group of sheep, and all of them become wolves.
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After reading Wu Hai’s leadership of Ctrip card promoters, I feel that doing things that others don’t want to do makes money that others don’t want to make; doing things that others have never done before makes money that others can’t think of; doing things that others can’t do makes money that others can’t earn to the money.
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Reading the Ctrip card salesman to promote business is touching.
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Read "New Promotion Method"

fable
Hen "crows" by
Eggs are always better sold than duck eggs in shopping malls.

This indisputable fact confuses the duck, and she wants to figure it out.So one day the duck found the hen.

Duck: "Sister chicken, I am very puzzled. Humans always say that the eggs you lay have high nutritional value. In fact, we insiders know that everyone lays the same eggs. My eggs are bigger than yours. What! Tell me, why are humans so nonsense?"

Hen: "Sister Duck, don't get excited! Do you really want to know the truth of the matter?"

Duck: "I really want to know!"

Hen: "Okay, after we both laid eggs, did we behave differently?"

The mother duck was a little confused: "Different behavior? I went quietly looking for food. Are you flying around in the yard?"

Hen: "Flying around is not a good way. I used to fly around with 'pa la pa la', but the owner thought I had the plague and almost killed me!"

The mother duck was even more puzzled: "What's the difference?"

The hen continued: "The difference is that after you lay eggs, you are always quiet and silent. But after I finished laying eggs, I was busy promoting my products, and kept shouting: Ha! Ha! Ha! It means My eggs are good! My eggs are good! This is why eggs sell better than duck eggs!"

The duck said in surprise, "Ah! Doesn't it bother you to bark in front of the master?"

Hen: "Not in front of you, but next to you. As for which master is next to you? It's best to choose the hostess, because the male master has no time to pay attention to you, but the little master can't understand what you mean."

The story of the "crow" of the hen tells us:
1. Any product needs to be promoted; 2. Choose the right promotion object; 3. Properly use promotion means.

(End of this chapter)