A week later, in the presidential suite of the Hilton Hotel in New York City, Jim Hughes arrived with his victory trophy.
"Mr. Chen, several Disney family employees who hold high-level positions at the Disney Company have agreed to leave the company. However, the severance pay they want is a bit high." After Jim Hughes finished speaking, he handed over a white paper with a number on it. Paper.
"16 people, demanding a total of 12 million U.S. dollars!" After reading the numbers, Chen Zhiwen frowned and said, "Are these people high-level executives at Disney?"
"About half, and the others serve as heads or department leaders of some non-core departments, such as administration, personnel, and logistics. There are only 5 people who are considered the core leaders of the company, managing 2 parks, movie business, and cartoon business respectively. , the other person is CEO Ron Miller." Jim Hughes introduced.
"You can talk to these five people. You can give them severance pay. Just negotiate the price appropriately. For the rest, just provide them with dismissal compensation in accordance with U.S. law. If you don't agree, then stay and wait until I get the controlling stake in Disney." If you leave again, you will lose all your money." Chen Zhiwen thought for a while and said.
Severance pay is actually universal. During a large-scale acquisition, if you want the other party's senior management to leave safely, you need to pay such a sum of money. Otherwise, if the other party leaves directly, the business is not handed over and important matters are not explained. It may cause greater losses later, and it may delay the acquisition. Therefore, it is a business consensus to pay a fee.
For example, in the original history, New York City, which ran Jardine Matheson Land to a debt of nearly 20 billion Hong Kong dollars, received a severance package of US$1 million when it was driven out by the Keswick family. Bao Fuda also received almost US$600,000.
But this money will only be given to the top management. It is not worth it for those small fish and shrimps who entered the company through connections. These people have probably sucked a lot of blood from the company over the years. If they are not pursued, it is also because of the need for acquisitions. This is also A kind of acquiescence, otherwise if you do too much, you may be completely boycotted if you acquire other companies in the future.
"Okay, that's no problem. I'll talk to them again, but this itself is dominated by five senior executives, so there won't be too many less." Jim Hughes reminded.
"I know that, but what should I do next?" Chen Zhiwen asked.
"All that's left is to negotiate the purchase price with Disney's shareholder representatives. However, with Disney's current business situation and liabilities, the price we offer is already very good. If we take a little more time, we should be able to get it done." Jim Hughes said: "If the price is negotiated, then you need to submit a formal application to the U.S. Department of Commerce. This may take a while, but we can get the request from the Department of Commerce first. If you don't agree, we at Morgan Stanley will need to Negotiate with the Ministry of Commerce. If you agree, or reach an agreement after negotiation, then just follow the normal process.
According to the law, if a foreign investment exceeds US$500 million in a US company or involves some sensitive technology, it needs to undergo a hearing. We will also be responsible for this, and this will happen in the future. No matter how fast it is, it will still take a few days. months time. "
"Okay, let's negotiate the price and then get the conditions from the Ministry of Commerce." Chen Zhiwen nodded and said.
This kind of large-scale cross-border acquisition will take several months no matter how smooth it is. Naturally, it is impossible for him to stay in the United States for that long. However, he must at least know important things first, and then make corresponding decisions, that is, to give both sides Or the government negotiation team can provide good guidance. Even if you are in Hong Kong, you can just follow up via remote phone calls. If it doesn't work, you can come over again. Anyway, it is very convenient to have a private jet.
"Okay, I'll let you know when there is further news." Jim Hughes said.
…
The price negotiation involves funds, which can reach tens of millions of dollars at a time. Naturally, both parties are unwilling to make too many concessions, especially when Chen Zhiwen knows that these shareholders really want to sell, and these shareholders also know that Chen Zhiwen is not really indifferent. Naturally, he fell into the game process.
But when it ends, it actually depends entirely on the opinions of the bosses behind both parties. If one party agrees, then the matter will be over.
Although Chen Zhiwen wanted to acquire Disney as soon as possible, but at this point in his work, the acquisition will inevitably be successful in the end. So if he can save a little money, he will naturally need to save a little more. Otherwise, the cost of inviting Morgan Stanley is not low, even if it is to buy it. With a certain discount, the money spent will naturally be worth the money. What investment banks are best at is finding loopholes in the other party to lower the price. At this moment, Morgan Investment Bank can be said to use all its power to find Disney's financial and operational possible errors.
One is to reduce the cost of acquisition for our customers, and the other is to avoid any undiscovered problems after the customer's acquisition. This is both for the benefit of the customer and for ourselves. Because if this kind of acquisition can save customers money and ensure that there are no major loopholes, it will naturally increase the investment bank's successful acquisition history and attract other customers who need large-scale acquisitions. On the contrary, this is another direction, especially if The client will cause a huge pitfall in the future. Although Morgan Stanley has ways to avoid legal liability, there will definitely be losses in terms of the reputation of the investment bank.
During this period, Chen Zhiwen also had other things. Now in the United States, he also owns many industries, such as AMC automobile business. With the collapse of national oil prices and the gradual recovery of the U.S. economy, the automobile business has also begun to recover. Traditional large-scale high-end enterprises have also begun to recover. Fuel-guzzling cars are on the rise again.
People in the American market never heal their scars and forget about the pain. A few years ago, they were worried about not being able to fill up with gas, but now they are keen on cars with high fuel consumption and high power.
But this is a good thing for Chen Zhiwen. The sales of his own cars are also increasing, and the capital chain within the car company has begun to flow. Chen Zhiwen does not need to spend additional money to subsidize.
However, in the long run, AMC was once positioned to be more fuel-efficient than the three major auto giants, and now it is directly facing Japanese cars. In other words, Japanese cars pose the greatest threat to AMC.
Even if Chen Zhiwen is trying to find ways to increase his marketing capabilities, such as acquiring 330 Chrysler car sales stores, investing in building sales channels in Southeast Asia, exporting to the mainland at a small profit to ensure more orders, etc., these are only treating the symptoms and not the root cause. It can only alleviate the short-term difficulties. In the long term, we still have to rely on technology. Only by relying on technology and quality can we stay stable in the automotive industry.
While the shareholder representatives of Morgan Stanley and Disney were fighting fiercely to get a suitable price for themselves, Chen Zhiwen came to the headquarters of AMC: Detroit, the City of Motors.
The one who came to pick him up was naturally the Chinese with the highest status within AMC - Gu Dehua.
Although considering cultural issues, the entire AMC team is still responsible for all business operations. However, Chen Zhiwen still mainly communicates with Gu Dehua. This is also convenient for him, not only in terms of language, but also as a As a Chinese with rich workplace experience, he can understand what Chen Zhiwen means in many cases. The second is to give Gu Dehua a high enough status in AMC. No matter how he is the boss, larger matters within the company still need to be approved or authorized by himself.
But everything has a balance. Gu Dehua and the American management are in balance, and many Chinese people arranged by Chen Zhiwen at AMC will also check and balance Gu Dehua. Not to mention power, Chen Zhiwen can also know everything about major events happening within AMC. , Chen Zhiwen has a lot of eyeliners.
The motorcade that picked up the airport was a row of Lincolns. Chen Zhiwen asked curiously: "When did you change this car?"
Gu Dehua said with a smile: "When the general environment was not good before, Lincoln's factory had too much production capacity, so it shipped a batch of goods to surrounding companies at cost price. AMC's previous reception vehicles were a bit old, so I bought them. There are a few new ones, but because the price is not very high, I didn’t notify you there.”
"Oh, it doesn't matter." Chen Zhiwen said nonchalantly: "The U.S. market has picked up recently. How is AMC's production capacity recovering?"
"It's much better than before, but it still hasn't returned to the state before 1978. If oil prices don't rise, it will get better and better. But our small cars are mainly fuel-efficient. The conflict with the Japanese is very serious. We have also tested it before We have tried many different models of Toyota and Honda, but in terms of fuel economy, we really can't compare, especially because their cars are very light. Although they are suspected of saving materials, overall, it is still a very good car." Gu Dehua said.
"Don't think about catching up with others in the areas they are good at. We have our own direction. How is the development of turbocharging technology?" Chen Zhiwen asked calmly. Compared with Japanese cars, especially A-class cars, the fuel consumption is probably only When electric vehicles appear in the future, in the fuel vehicle market, even if they can be realized, it will be very difficult. First movers generally have a lot of technical experience and patent barriers, and it is basically unrealistic for latecomers to catch up.
"The prototype has been made, and our test results also show that it can be more powerful, but there are still problems that need to be overcome, such as noise, lifespan, vibration, etc." Gu Dehua said.
"Okay, let's go take a look first." Chen Zhiwen nodded and said.
Soon, several people arrived at AMC Company, and American senior executives were also waiting at the door to greet them. The subsequent reception was also ready, but Chen Zhiwen had no interest and went directly to the laboratory.
The technical expert was an American about 60 years old. He spoke English with an accent and talked to Chen Zhiwen for a long time. Although Chen Zhiwen didn't understand technology, he listened politely, but he didn't understand anything. Professional English itself is difficult, and you need to add an accent.
"Mr. Mark, if our turbine is driven normally, how many kilometers will its lifespan be?" Chen Zhiwen asked.
"About 50,000 kilometers, in terms of materials, we still need to continue testing to find more suitable materials. In addition, we also need to build a new cooling system to dissipate heat from the turbine." Mark said.
"I know that Saab in Europe launched turbocharged cars a few years ago. Have you ever studied their cars?" Chen Zhiwen asked. In the late 1970s, Swedish Saab was the first company in the world to use turbocharging technology. Chen Zhiwen also knew about cars, but he was not sure about the technology.
Mark said: "Saab's turbocharging technology is indeed much better than ours, and it has been tested by the market. We have also sent people to visit Saab before to seek cooperation or purchase related technology, but they were rejected. I I heard it’s the same at General Motors.”
"This kind of technology is unlikely to be sold by others. We can only rely on our own research." Chen Zhiwen said that although he does not understand technology, he understands business. Whoever masters this revolutionary technology in the automobile industry will be able to gain the upper hand. Machine, how could it be sold casually?
"Yes, we can only rely on ourselves. In fact, we have obtained some good materials with long enough lifespan. This material is mainly used in the aviation field, but the cost is too high. We need to find a balance between cost and technology." Mark said again.
"The research and development of materials really depends on luck." Chen Zhiwen nodded and asked, "Is there any quick solution?"
One problem that has hindered turbine technology in later generations is materials, because this thing needs to work in a high-temperature environment for a long time. In a space as small as a car, it is difficult to quickly cool it no matter how optimized it is.
Of course, some solutions have actually been solved by several companies now, but their products have already been patented, and Saab and Porsche are high-end cars. Direct use of turbines in aviation costs is not a problem, but AMC obviously cannot.
The most complex automotive technology is actually not a high-end sports car or a handmade Rolls-Royce, but the most basic A-class car, B-class car or small and medium-sized SUV. Producing the most cost-effective car at the lowest cost is the most difficult thing in the automotive industry. Technology. This has almost abnormal requirements for technology research and development, materials, and quality.
"Boss, there is a method, but the cost is relatively high. Our AMC R&D team is not weak in the United States, but it is far behind the three giants. As for materials, the most powerful R&D teams are in various universities. Laboratories, steel mill laboratories and other institutions, if we can entrust them to do research and development, the speed will definitely be much faster." Mark suggested.
"You mean to find multiple companies to do research and development at the same time?" Chen Zhiwen understood the meaning, because it doesn't cost much to find one to do research and development.
"Yes, for example, if we look for R&D teams with high temperature resistance and long service life, if we find more R&D teams, the probability of success will be higher. It's just a matter of cost." Mark said with a smile.
"Okay, I agree. You can prepare a list and approximate cost. If there is no problem, that's it." Chen Zhiwen nodded. Although turbine technology has been developed by others, it is only used in high-end cars. If AMC can develop it in mid-priced models, Using a turbine is definitely an advantage. Although it is difficult to increase its level significantly, it can also gain more markets.
Comparatively speaking, spending a little more on research and development is nothing. The research and development of automobiles itself easily costs hundreds of millions of dollars. Or is it because this was the 1980s, and the currency value was high. In a dozen years, even a billion dollars would not be available. .
AMC's foundation is not very good, and it is really difficult for it to engage in such professional material research and development. For a small company, outsource some things that need to be outsourced, and just concentrate on what you are good at.
Moreover, in the automotive industry, it only takes ten years for a technology to go from laboratory to application. If money can buy time, Chen Zhiwen is still willing.
PS: Let me ask you a question. Is it uncomfortable to jump from one thing to another the way I write?
The main thing is that it is normal for this kind of large-scale acquisition to take one or two years in practice. I have reduced this time in China, but it will still take a few months no matter what. You must consider some rationality. In this process, for the protagonist The demand for it is not very high, so I am used to writing about other things, otherwise the time would be wasted.
If this is really not good and you like to end it one thing at a time, then I will write like this from now on.
(End of chapter)
