Chapter 2028 Dongpeng

The case of acquiring Dongpeng Special Drinks is quite complicated.

Because Dongpeng Special Drink is only a product of Dongpeng Beverage Group, the company also has many products, such as plant drinks, refreshing drinks, as well as soy products, water, candied tangerine peel and other products.

Those things are really not worth mentioning, and Yuanwei Group has no interest in them.

The handling of these miscellaneous product lines has become the focus of discussion between the two parties.

After all, Dongpeng is still very small at this stage. Last year's annual sales were only 250 million yuan, while Yuanwei Group's annual sales have steadily exceeded 12 billion yuan.

Fortunately, Dongpeng has a very effective negotiation point, that is, their growth rate is very high.

Dongpeng Beverage was originally a state-owned enterprise rooted in eastern Guangdong Province, mainly serving the Cantonese-speaking areas of Guangdong and Guangxi. However, as the market opens up, it becomes increasingly unsustainable.

The beverage market is highly open, allowing not only private enterprises to develop freely, but also foreign companies to develop freely.

This is very destructive.

It is the same in all walks of life. If private enterprises are allowed to develop without restrictions, then state-owned enterprises will be marginalized; if an industry allows foreign companies to participate without restrictions, state-owned enterprises will be completely outcast.

Dongpeng was like that at that time, it really couldn’t continue to operate. The then deputy general manager Lin Moqing found a few Chaoshan fellows to promote the management buyout. He personally invested 1.47 million and together they raised more than 2 million to buy this state-owned enterprise that was on the verge of bankruptcy.

Then, Lin Moqing became the boss of the restructured company, which started to develop step by step in 2003. It started in Pengcheng, then moved to eastern Guangdong Province, and then covered Guangdong and Guangxi. Finally, in 2009, it launched "Dongpeng Special Drink" and went nationwide.

In 2003, Dongpeng Beverage's annual sales were only 15 million yuan, with an annual loss of more than 3 million yuan; last year, Dongpeng Beverage Group's annual revenue had reached 250 million yuan, and its net profit exceeded 17 million yuan.

After the restructuring, under the leadership of Lin Moqing, the company's performance continued to hit new highs and its development was booming.

In this case, it will not be easy to negotiate the acquisition.

Zhou Buqi's appearance made Dongpeng's executives feel enthusiastic and excited. They all spoke very non-standard Mandarin and excitedly came to shake hands with him.

Now Dongpeng is just a small local company.

Who is Zhou Buqi?

The richest man in the country!

The richest man in China!

The appearance of the richest man made Dongpeng's group of Chaoshan executives excited, and they also felt Yuanwei Group's sincerity towards this deal.

However, sincerity cannot be eaten as food.

When they arrived at the negotiating table, the two sides encountered major differences as expected.

Dongpeng Beverage Group has many businesses and product lines, including many local snacks and snacks, as well as herbal tea, coconut milk, and mineral water.

In the view of Yuanwei Group, these product lines are useless and worthless.

Can herbal tea beat Jiaduobao and Wanglaoji?

Is coconut milk better than coconut milk?

There are also snacks that are obviously regional and have no possibility of nationwide promotion, so there is no need to keep them.

Therefore, there are mainly two acquisition plans proposed by Shi Jinglin.

First, only acquire the Dongpeng specialty drink product line of Dongpeng Beverage Group;

Second, buy Dongpeng Beverage Group, but after the acquisition is completed, all the messy product lines must be closed, and only the "Dongpeng Special Drink" product will be retained.

Dongpeng disagrees with these two plans.

They have only one plan, which is to sell Dongpeng Beverage Group as a whole. At the same time, existing management is retained and no product line can be closed at will.

In short, in one sentence, acquisition is okay, but Dongpeng Beverage must operate independently.

In order to convince the other party, Shi Jinglin even offered stocks worth HK$260 million and cash of 120 million Chinese dollars to complete the transaction.

This price is very sincere.

Last year, Dongpeng Group's net profit was only 17 million yuan, which is already a price-earnings ratio of more than 20 times.

But the other party still refused.

Lin Moqing's Mandarin is also very substandard, but fortunately he speaks slowly, "It's not about money."

Seeing that the negotiation was at an impasse, Zhou Buqi smiled and said: "First of all, both parties have the same intention. This is the most important thing. Next, if there are differences, just solve the problem. Mr. Lin, if you don't say it's not about money, then What's the problem? Is it convenient to disclose it?"

Boss Zhou still has a lot of face.

Because at the negotiation table, leaking secrets means losing the right to speak in negotiations, and it is easy to be priced down.

Fortunately, Shi Jinglin was generous enough and offered a high price.

In addition, a world-class entrepreneur like Zhou Buqi would not resort to scheming for such a small amount of money.

Lin Moqing said sincerely: "Dongpeng is a company that was restructured from a state-owned enterprise. The environment here is relatively complicated. Our company has many old employees who have been working in the company for thirty or forty years. The reason why the state-owned enterprise was restructured was so If everything goes well, I have promised some core employees that they will not be laid off after the restructuring."

Zhou Buqi said in a deep voice: "This is credibility. It is indeed a very serious issue."

Lin Moqing nodded, "Many product lines are left over from the state-owned enterprise period, and they actually cannot create much value. But retaining these product lines can allow thousands of old employees to have a stable job. When we Chaoshan people do business, reputation is not only more important than money, but even more important than life."

"understand."

Zhou Buqi nodded.

It is a bit exaggerated to say that reputation is more important than life. But it can be seen that Mr. Lin attaches great importance to credibility and is not willing to sell the company while his group will make a lot of money while the old employees who once had great trust in him will suffer.

Once those unimportant marginal product lines are shut down, at least several thousand people will be laid off, and thousands more will point their fingers at his spine and scold him.

Lin Moqing said: "Dongpeng has developed very well in recent years, but the gap with large companies like Yuanwei Group is still relatively large. We will agree to this deal because we want to use the support of Yuanwei Group's large platform to Dongpeng's business is developing faster and better. Especially the product Dongpeng Special Drink."

"Oh?" Zhou Buqi was very interested, "How do you say it?"

Lin Moqing said: "Dongpeng's other products are all regional products, and the main sales market is eastern Guangdong Province. We wanted to create a national product, so we launched Dongpeng Special Drink Functional Drink. But , there is a big gap between us and Red Bull. They are a big company, and we are just a small company."

Zhou Buqi said with a smile: "So you want to use Yuanwei Group's platform to help Dongpeng Special Drinks compete with Red Bull?"

"That's right," Lin Moqing hesitated for a moment, but said honestly, "Since the launch of Dongpeng Special Drink in 2009, our market performance has been quite satisfactory. However, this year we have encountered a huge challenge, which is Red Bull Competition was launched, and they asked supermarkets to choose between two, and only one of Red Bull and Dongpeng Special Drinks could be on the shelves.”

Then, he told the inside story in detail.

After the launch of Dongpeng Special Drink, I had great luck.

Because Red Bull changed its executives at that time, the new executives felt that they were quite capable. If they wanted to have a new look, they had to give up the "drink Red Bull when you are sleepy and tired" that has been used for more than ten years, a classic that has deeply occupied the minds of the people. Advertising slogan.

At that time, Lin Moqing was worried about what kind of advertising slogan he should choose.

Then I heard such good news.

oops!

What a gift from heaven!

The advertisement "Drink Red Bull when you are sleepy and tired" has been promoted for more than ten years and has locked in consumers' awareness of functional drinks. In the minds of most consumers, functional drinks are drinks that are drunk when they are sleepy or tired.

Red Bull actually gave up? !

Lin Moqing seized the opportunity and quickly launched a similar advertisement such as "Drink Dongpeng special drink when you are tired and sleepy", taking over the advertising slogan that Red Bull gave up and influenced the minds of consumers for more than ten years.

And then there was success.

In addition, the development route of Dongpeng Special Drinks was quite right. It started with small cities in the fourth and fifth tiers and adopted a low-price model. A can of Red Bull costs 6 yuan, while a bottle of Dongpeng Special Drink costs 3.5 yuan. The taste is similar, so it can open up the market very well.

However, by this summer, Red Bull reacted and began to compete.

Red Bull has made clear requirements. In large supermarkets, Dongpeng Special Drinks and Red Bull are not allowed to be placed together; in small supermarkets and canteens, it is even more strict, and it is a "choose one of the two".

As long as Red Bull is placed on the shelf, Dongpeng Special Drink cannot be placed, otherwise it will not be supplied.

This immediately threatened the market of Dongpeng Special Drinks and blocked Dongpeng Special Drinks’ access to big cities.

The reason why Lin Moqing is willing to negotiate with Yuanweiwei Group is because Red Bull's competitive strategy is too harsh, which makes it difficult for him as a small boss to handle it.

It would be different if Dongpeng Special Drink became a product of Yuanwei Group.

Yuanwei Group has Yuanwei milk tea, Yuanwei black tea, Yuanwei green tea, Yuanwei orange honey, Yuanwei peach honey, Yuanwei jackfruit, Yuanwei mineral water and other products. Its market influence is much greater than that of Red Bull.

As long as Yuanwei Group binds its products to Dongpeng Special Drinks, and if Red Bull still dares to play the "choose one from two" routine, then supermarkets will definitely give up Red Bull when making a choice.

The spring of Dongpeng Special Drinks is here.

Zhou Buqi's mood became clearer after listening to the other party's sincere description, because the other party sincerely wanted to reach an agreement with Yuanwei Group.

The goals of both parties are very similar.

Next, it is just a matter of resolving the differences and finding an answer that satisfies both parties.

However, Zhou Buqi couldn't decide on this matter without authorization. He would communicate with Shi Jinglin later to see what she meant. There is really no need to take over those scrap product lines. Making money and losing money are trivial matters. Too many business lines will greatly increase management complexity.