I Am a Nobleman in England

The NBA's annual draft has attracted the attention of millions of people around the world. At the same time, in the face of such a grand event, a variety of different voices and different performances grab people's attention. The situation of the players to be selected, the goals of each team, some lace news off the court, everything seems to be the whole world revolving around this matter.

This is a high-profile business. All this is going on around business.

The development of competitive sports to this day, in addition to the original motivation, what else has it brought to people? Honor? Inspiring inspirational story?

Well, this is where they succeeded. Transaction, salary, conflict, confrontation, in fact, are always revolving around business. The NBA has been commercialized for so many years, the main reason for its success.

"Everything is essentially a transaction, and all relationships are doing business"

From an economic point of view, this sentence is quite reasonable and very classic.

From the point of view of the essence of everything, human beings and the outside world are a process of exchanging what they have with themselves.

Even if human beings multiply, the old will give birth to the young, and the young will provide for the old.

Marriage, although love is beautiful, but the fusion of two people still uses the inner essence of each to get what they need.

Not to mention the process of person-to-person interaction. From a background perspective, it is actually a potential exchange with a purpose.

So, isn't this kind of exchange a kind of business, but sometimes it is not a transaction with money, but a variety of "business".

Only profit is a business, and maximizing profit is the first attribute of capital.

Arthur tried it. After the freshness disappeared, he did not continue to participate in boring joint training. His time was not so worthless!

After the successful acquisition of the New Jersey Nets, the actual controller of AMC, the five holding fund companies once again invited Arthur to restart negotiations on the acquisition of AMC theaters.

As Arthur thought before, one monk carried water to eat, but five monks had no water to eat. With the IPO in the foreseeable future, some people have no patience to continue, especially in the face of repeated complaints from the management of AMC Cinemas and requests for capital injection. In the past, they have been squeezing cash profits and digging a huge hole. Naturally, domestic institutions will not pay to fill this big hole.

In fact, the operating costs of the AMC theaters have been high. According to the explanation of the losses disclosed by the AMC theaters, the rentals of the theaters, lower ticket prices and interest factors have caused the company to face difficulties in profitability. It is precisely because of poor profitability but high operating costs and huge debt that it has not been optimistic about the market, and the progress of listing has been stuck.

Faced with such a situation of internal and external troubles, the five institutions came together to discuss, unless everyone contributes money to alleviate AMC’s operational difficulties and make the balance sheet look better, otherwise they can only restart negotiations, hoping that this can be improved. Tossing a scapegoat to the British guy who doesn't lack money, makes another big profit.

For this period of time, Arthur's large-scale consumption in New York, they are in their eyes, but also really anxious, worried that Arthur's method of spending so much money, no money to buy AMC, then it is really bad.

"...700 million U.S. dollars and assume all the debts."

In Arthur’s mansion study, AMC CEO Gary Lopez handed a document in his hands to Arthur who was sitting in the boss chair, and the leader of the negotiating team on the side also said: "This price, It's almost their psychological bottom line. We have also lowered the price, but they simply refused."

After receiving the folder, Arthur smiled and asked Gary Lopez, the CEO who had turned his back, and asked: "What do you think?"

"This price is actually acceptable. As far as the theater operation is concerned, it is actually very cheap to acquire AMC. AMC operates 346 theaters in major cities in North America and has 5,034 movie screens, including 2,336 3D screens and 128 I screens.

It is located in 24 of the 25 largest markets in the United States and has seven of the top ten theaters with the highest box office in the United States. In particular, AMC ranks No. 1 or No. 2 in market share among the top 10 US markets, including New York, Los Angeles, and Chicago.

In fact, on a per-screen basis, it’s actually quite affordable, far lower than the other two large listed cinema companies, Cinemark’s average of $711,000 per screen and Regal’s average of $595,000 per screen. s level. And most of them are in the center of the North American city circle, which is a good choice for the expansion of the North American market and capital internationalization.

Of course, the key lies in debt, which is indeed very stressful. . . "Gary Lopez naturally very much hopes that the new boss can enter AMC, so that they can get rid of the fate of being constantly sucked blood and being a puppet, so he wants to give the new boss more confidence.

"However, Mr. Bolin, I can assure you that after the completion of the acquisition, if you can continue to invest in capital, the money does not need to be too much. US$300 million is enough. We can improve AMC’s debt structure. In addition, a new and efficient management incentive mechanism has been implemented, and the management has been strongly supported in a series of business innovations centered on enhancing customer experience.

I can assure you that in one year, we only need one year to turn losses into profits, let AMC make money, and pay off all debts within ten years! "

"Ten years..." Arthur narrowed his eyes, whispered softly, lost in thought.

To be honest, the price is really not expensive, the key is the debt pit, it is too deep to dig it, it is difficult to turn over in a short time, even if it is to promote the listing of AMC.

Just relying on annual profits to repay debts is really a drop in the bucket. Regardless of the scale of AMC, it can make a profit of 100 million US dollars every year.

This is mainly because the unique theater system in the United States makes the theater industry not profitable. Only by continuously developing new technologies can it generate revenue for enterprises. Only every film technology innovation will usher in a leap in revenue. Like IMAX, 3D applications have given the cinema industry a short period of time, but companies will quickly encounter operating bottlenecks and even losses.

Therefore, for AMC, the income-generating road is too long to be seen at a glance, but the United States is a fully saturated, highly competitive, and slow or non-growth market with low average profit margins.

The only advantage at the moment is that the new 3D revolution triggered by "Avatar" has just begun, and it can make a lot of money in the next few years.

However, in the long run, the future upside of AMC is minimal, there is almost no prospect of institutional expansion, and there are few acquisition opportunities that can arouse interest. Perhaps after the acquisition is completed, it may be a good choice to sell it at a suitable price.

Thinking of this, Arthur was really moved. He knew that it would not be long before the local tyrants of the Chinese dynasty would start buying the whole world. Moreover, the richest man in the Chinese yida was very ambitious about the cinema market.

If you buy AMC by yourself, merge and integrate with European theaters, you can package and sell. . . I believe it can definitely sell a considerable number.

He is not at all worried that the local tyrants of the Chinese dynasty have no money. He is well aware of the crazy ambitions of the Chinese enterprises to expand overseas in the next few years.

Driven by a number of large enterprises, the enthusiasm for overseas expansion of Chinese enterprises is gradually heating up, especially when the bids are too generous.

As for whether it is highly leveraged, no one cares about these companies, because they are betting that the acquired overseas company can quickly create sufficient cash flow, otherwise they will face an increasingly severe debt burden.

Of course, this is also strongly supported by many financial organizations. During this period, there is no lack of ZC support. These commercial banks are also willing to provide a lot of foreign currency loans for these mergers and acquisitions ~ www.readwn.com ~ also has the commercial purpose of expanding abroad with the help of Tianchao Company.

This can't help but recall the history of footbath companies holding high checkbooks overseas in the 1980s. Under the background of the substantial appreciation of the yen after the "Plaza Agreement" in 1985, overseas acquisitions seem to be very "affordable" for footbath companies. The most famous of these was the acquisition of the Rockefeller Base, a landmark building in New York City, for US$1.4 billion by Mitsubishi Properties Eighty percent of the equity is regarded as the main symbol of the overseas investment frenzy.

However, the investment frenzy of the foot basin company gradually declined after the collapse of the bubble economy in the 1990s, and many of the investment later proved to be blind. What's more important is that although many foot basin companies have completed their geographic globalization in the process of overseas acquisition, they still appear culturally incompatible with Western society.

As for whether the Tianchao Company will repeat the mistakes of the Footpen Company, no one can say clearly now. However, then again, after the economy and the company have developed to a certain level, natural demand is "extensional" expansion to deal with many internal problems.

Thinking of this, Arthur's eyes suddenly lit up and he made a decision. He reached out and tapped the minutes of the negotiations on the desk and said, "That's it, tell them that I bought AMC!"

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