After hearing the acquisition prices revealed by Isaac from the other potential acquirers, Su Yi and Wang Huaijin were both somewhat surprised.
According to the information Isaac revealed, none of the other bidders offered more than 2 billion US dollars.
Even Gain Capital, which was eager to acquire FX International to eliminate this competitor, offered a proposed acquisition price of less than 1.7 billion US dollars, and among the conditions it put forward, the cash contribution was less than 1 billion US dollars.
"It seems that our previously formulated negotiation plan is still very reasonable."
After understanding the conditions and preliminary acquisition plans proposed by the other potential acquirers to FX International, a broad smile clearly appeared on Wang Huaijin's face, and he gained strong confidence for tomorrow's negotiations.
"Based on the conditions offered by the other competitors..." Su Yi said, "it can only be said that the pound's exchange rate collapse caused by this 'UK Referendum' event indeed inflicted extremely heavy losses on FX International, and also exposed the company's internal risk control problems."
"That's for sure." Wang Huaijin nodded.
"Regarding FX International's current financial analysis report, has it been compiled?" Su Yi paused, then asked, "Before we formally negotiate with FX International's shareholders, we must have a clear understanding of its internal financial data!"
Wang Huaijin said, "Based on all the information we could gather, the relevant financial analysis report has been compiled."
As he spoke, Wang Huaijin opened his laptop and presented the relevant data analysis report to Su Yi.
Su Yi took a careful look and finally understood why the proposed acquisition prices offered by the other competitors, the potential acquirers, were all far below FX International's market valuation.
It turned out that according to the financial analysis report compiled by everyone using internal and external information,
FX International's current financial situation showed that its liabilities clearly outweighed its revenues, and the group's short-to-medium-term internal cash flow was already negative.
If external emergency financing was not initiated,
which meant if FX International did not accept the acquisition proposals from various parties,
then, within two to three months at most, the company would have to declare formal bankruptcy and cease operations.
"This financial situation is worse than we previously expected," Su Yi said with a smile, "Given this financial situation, an acquisition price of 1.5 billion US dollars is highly likely to be negotiated down."
Wang Huaijin nodded and said, "From a financial perspective, FX International is indeed on the brink of bankruptcy. However, apart from cash flow and debt issues, the company's asset structure, especially its intangible assets and corporate reputation, are still very excellent."
"But these so-called excellent assets cannot be liquidated in the short term," Su Yi chuckled and said, "No wonder Yishabeier said that as long as we stabilize FX International and prolong the acquisition time, it will be increasingly beneficial for us."
"Mr. Su, do you already have a clear plan for tomorrow's negotiations?"
Wang Huaijin's eyes lit up when he heard Su Yi's words, and he asked.
Su Yi nodded slightly and said, "In tomorrow's meeting and negotiation, we can start by addressing less critical issues, and don't finalize the ultimate acquisition price yet. As for other acquisition conditions, agree to them if possible.
At the same time, propose that after establishing a letter of intent for acquisition, we will need to conduct a comprehensive audit and evaluation of FX International's asset structure and financial condition before finally determining the acquisition price, but we can guarantee that our institution's offer can be 10% higher than the market's fair valuation."
"10% higher than the market's fair valuation?" Wang Huaijin was taken aback. "Is this... appropriate?"
Su Yi said, "As time passes, FX International's operating conditions, as well as its asset and liability situations, are continuously deteriorating. This means that as we proceed with a comprehensive evaluation of its assets, the company's market fair value will continuously decrease. Currently, everyone can still offer FX International a market acquisition price of nearly 1.7 billion US dollars. But a week, two weeks, a month, two months later...
When FX International's internal operating conditions have deteriorated to the point where it can no longer sustain itself, the market's fair value will likely be significantly discounted. Our goal is to acquire FX International entirely at the lowest possible cost. Therefore, delaying time through reasonable means is entirely feasible."
"But I'm worried about one issue," Wang Huaijin said. "It's certainly feasible for us to delay the signing of the formal acquisition plan through reasonable means to acquire FX International with less cost and capital.
However, during this process, as time passes and FX International's market fair value decreases, its corporate market competitiveness also declines. During this period, they will lose many customer groups.
It is also likely that many excellent talents will be lost within the group. From the perspective of our long-term interests after the acquisition, this would actually be detrimental to our acquisition objective."
"Your consideration is also reasonable," Su Yi said. "For us to acquire FX International at a lower cost, and at the same time ensure that the acquired FX International company does not suffer foundational damage, can quickly recover to its previous revenue and peak business scale, and swiftly emerge from the impact of this 'UK Referendum black swan' event, we must strike a balance. How about this, tomorrow's negotiation plan will still follow the strategy I just outlined.
However, in subsequent further second and third negotiations, as well as in the comprehensive evaluation of FX International's assets, we can appropriately manage the timing and closely monitor the development of FX International's internal operating conditions, signing the final agreement and injecting capital to rescue the company at the most opportune moment."
"Okay." Wang Huaijin nodded, agreeing with Su Yi's opinion.
Then, with both of them in agreement, and the entire negotiation team's strategy and messaging unified,
After a night's rest.
The next day, Saturday, July 9th.
Su Yi and his entourage, along with the shareholders of FX International Group and the group's core senior executives, once again held a negotiation meeting for a preliminary acquisition intent in the conference room of FX International's headquarters building.
"Mr. Su, you stated yesterday that if both sides could reach a reasonable agreement for this acquisition, your company would proceed with an all-cash acquisition. I wonder if this plan still holds?"
After both parties were seated and exchanged brief pleasantries, Situ'erte, Chairman of FX International Group, spoke on behalf of all shareholders, asking,
"Also, you said that after a successful acquisition, there would be no significant reforms or adjustments to our group's business structure or internal personnel structure. Is this... truly what Mr. Su means?"
Su Yi looked into Situ'erte's eyes, then scanned all the FX International shareholders in the conference room, and said with a smile,
"There's an old saying in China: 'A gentleman's promise is heavier than a thousand catties.' The two conditions I promised everyone, if both parties can ultimately reach a suitable acquisition agreement, will naturally not be changed."
(End of chapter)