In Hong Kong, we build a global business empire

Bernard Arnault took a deep breath and bowed deeply to Lin Haoran.

This gesture is not deliberate flattery, but a heartfelt expression of respect.

Lin Haoran not only pointed him in the right direction, but also gave him funds, trust, and an opportunity to change his destiny.

“Mr. Lin, I agree.” Bernard Arnault straightened up, looking firmly at Lin Haoran. “I am willing to accept your proposal to integrate the luxury goods industry in Europe.”

I can't guarantee success, but I promise I will give it my all, at any cost. Once I get back, I'll begin working on the real estate project in the US and get back to France to launch this project as soon as possible.

Lin Haoran asked in surprise, "Aren't you going to ask how the shares will be divided?"

Bernard Arnault paused for a moment upon hearing this, then shook his head and said sincerely, "Mr. Lin, to be honest, before meeting you, my real estate projects in the United States, while not exactly losing money, weren't making much either, so I had been considering withdrawing from the American market."

After nearly two years of trying, I've realized that the US market isn't right for me, and I was wondering what to do next when you appeared.

Your words touched me deeply. We can discuss this matter slowly. I believe you will not treat me unfairly, and I will not let you down.

Your visit today is the biggest opportunity of my life, and I must seize it!

Lin Haoran smiled.

Looking at this future legend of the luxury goods industry, he couldn't help but sigh. No wonder he was destined to become the world's richest man multiple times. His decisiveness and courage were truly extraordinary.

When ordinary people encounter such a windfall, their first reaction is often doubt, hesitation, and anxiety, but Bernard Arnault did not.

He made a decision in the shortest amount of time and seized the opportunity without hesitation.

This ability speaks volumes more than any of his achievements in the French real estate industry.

He smiled and said, "Well, in that case, take your time. I'll give you three months to get rid of your American businesses, then return to France and wholeheartedly cooperate with me on the luxury goods consolidation. Three months, is that enough?"

Bernard Arnault thought for a moment and said, "Mr. Lin, three months is enough. I don't have many projects on hand. If we sell them at a discount, most of them can be completed within three months."

If there are any issues that I can't handle, I can entrust them to a local intermediary company or ask Citibank for help. Rest assured, I will definitely resolve the issues in the United States by April next year, and then devote myself fully to the business of integrating European luxury goods.

My only concern is whether the radical actions of the current French President Mitterrand after taking office will hinder our acquisition of luxury brands. After all, the Mitterrand government has carried out large-scale nationalization, and banks and industrial groups have been nationalized. Who knows if he will target the luxury goods industry next?

In addition, the government's introduction of a wealth tax and increased corporate taxes have increased the tax burden and social security burden on enterprises, squeezing their profit margins.

Will this situation affect our consolidation of the luxury goods industry?

Lin Haoran shook his head and smiled, "Don't worry, I've studied France's economic situation over the past two years. The government's large-scale nationalization and tightening of capital controls were aimed at curbing capital outflows and strengthening foreign exchange controls. However, the French government didn't expect that this would actually accelerate the transfer of capital before the policies were completely locked down. I believe that your family moved to the United States for the same reason, right?"

Bernard Arnault nodded and said, "That's true. When the Mitterrand government came to power, the policy direction changed abruptly. Although our family's businesses were not on the list of those to be nationalized, no one knew what would happen next. Moreover, imposing a wealth tax would have caused us huge losses."

Rather than waiting to be defeated, we decided to take the initiative. So, after discussing it with my father, we decided to transfer most of our assets to the United States to diversify our risk. However, the US real estate market turned out to be more difficult than we had imagined.

Lin Haoran smiled and said, "This is the opportunity. The tighter the French government's policies become, the more luxury brand owners want to liquidate their assets and sell their brands."

Their fears of nationalization, increased taxes, and government scrutiny presented the perfect opportunity for our acquisition.

Think about it: if the market is booming and all those brands are making money, who would be willing to sell? They would only consider selling when they feel fear, uncertainty, or hopelessness about the future.

What we need to do is acquire those high-quality brands at the most reasonable prices when they are most panicked.

Bernard Arnault's eyes lit up.

Lin Haoran's words were like a key, unlocking a door in his mind that had never been opened before.

He had never thought about the problem from this perspective.

He always believed that the policies of the Mitterrand government were obstacles, hindrances, and bad things.

But now he understands that for those who are prepared, a crisis is an opportunity.

Lin Haoran continued, "Moreover, the current situation in France cannot be sustained for long. The more this happens, the more capital will try to flee France. Therefore, the government will eventually be unable to hold on and will have to start a complete change of course, accelerating marketization and deregulation. Only in this way will the capital outflow gradually stop and funds will flow back on a large scale!"

He didn't know much about France during this period, but by combining some knowledge from his previous life with the current situation in France, it wasn't hard to come to this conclusion.

Although the Mitterrand government's nationalization policy came on strong, this approach, which went against the market trend, was destined to be unsustainable.

Capital is smart; it votes with its feet.

As more and more business owners and wealthy people choose to leave France, as economic data continues to deteriorate, and as unemployment remains high, the government will eventually realize that this path is not viable.

Moreover, he remembered that in another world, Bernard Arnault was returning to France the following year, indicating that the political and economic environment in France had begun to turn around at that time.

The luxury goods family owners who were initially panicked have gradually calmed down after the initial shock.

But it is precisely this transition period from panic to calm that is the best time to acquire. When they are panicking, they want to sell, but after they calm down, they don't want to sell anymore.

Therefore, the window of opportunity is very short, and we must act quickly.

“Mr. Arnault, after you go back, you will not only have to deal with the real estate projects in the United States, but also start to pay attention to the developments in France.”

Lin Haoran said seriously, "I need you to make a list, compiling information on the most worthwhile brands to acquire, their financial status, equity structure, and family background."

Once we officially launch the project, we can go straight into the negotiation phase without needing to spend any more time on research.

Bernard Arnault nodded and said, “Mr. Lin, rest assured, I will start working on this as soon as I get back. I have been in the French business world for more than ten years, and I have no shortage of connections and resources.”

Although I used to work in real estate, not luxury goods, I know at least some of the owners of those brands, and even if I don't, I can find someone to introduce me.

Lin Haoran smiled and said, "That's good. Remember, don't rush. Take it slow. It's better to be slow and steady. Acquiring a brand isn't like hosting a dinner party; it requires patience, strategy, and timing."

We don't fight unprepared battles. I'll be staying in the US for a while, giving you ample time to prepare. Before I return to Hong Kong, I'll contact you again to finalize the investment funds, equity, acquisition targets, and specific timetable.

He wasn't afraid that Bernard Arnault would back out, since even if the other party wanted to go it alone, it wouldn't be possible because the other party didn't have enough funds.

In another world, Bernard Arnault, after returning to France, acquires the long-term loss-making textile company Bosac Group, thereby gaining access to the Christian Dior brand and the Le Bon Marche department store.

In addition to the Arnault family's funds, this transaction also involved a leveraged buyout funded by Lazard Bank, multiple institutions, and individuals. It was an extremely complex transaction, involving not a particularly large sum of money, but with numerous stakeholders and an extremely difficult process.

Now, Lin Haoran can directly provide him with sufficient funds, so he doesn't need to win over any banks or institutions, let alone find any individual investors.

All he needs to do is one thing: find those brands and buy them.

Partnering with him allows you to achieve your goals in one step and acquire the brands you're interested in within a short period of time.

When collaborating with others, he needs to acquire them gradually.

For example, in another world, after he returned to France and acquired the Bosac Group to gain control of Dior, he did not start to take action against Louis Vuitton and Moët Hennessy until 1987, and did not truly take control of the two brands until 1989.
其后，伯纳德·阿诺特在1988年，拿下纪梵希；1993年，收购伯尔鲁帝；1994年收购娇兰；1996年收购罗意威、思琳；1997年收购Marc Jacobs；1998年收购丝芙兰；1999年收购芬迪、泰格豪雅、滴金酒庄；2000年……

It took him two or three decades to integrate these luxury brands. The reason was simple: he didn't have enough funds, so he had to take it one step at a time, negotiating with each brand and making each deal one by one.

Moreover, he often has to rely on leveraged buyouts to attract banks and institutions to invest, a process that is extremely complicated and could lead to complete failure if he is not careful.

But things are different now. With Lin Haoran providing him with enough funds, he can acquire and integrate these luxury brands in just a few years, allowing this luxury empire to take shape 20 or 30 years ahead of schedule.

This was undoubtedly a golden opportunity for Bernard Arnault.

He doesn't need to spend over twenty years, like in another timeline, slowly accumulating, negotiating, and integrating.

He can acquire all the top brands within three to five years, and then focus on brand upgrading and global expansion.

There are drawbacks to this outcome. For example, Bernard Arnault might make mistakes due to a lack of experience in taking the helm of such a large business empire all at once. There might also be issues with the integration of certain brands and the need for the team to gel.

However, compared to spending two or three decades accumulating wealth slowly, these drawbacks are completely acceptable. After all, time is money, and time is opportunity.

The sooner we complete the integration, the sooner we achieve economies of scale, and the sooner we can dominate the global market.

After seeing off the energetic Bernard Arnault, Lin Haoran stood in front of the floor-to-ceiling windows of the Citibank headquarters building, gazing at the Manhattan skyline outside, and planning his next trip.

The meeting with Bernard Arnault went much more smoothly than expected; the future godfather of luxury goods certainly did not disappoint him.

That decisiveness and courage, that ability to remain clear-headed and discerning even in the depths of despair, are the qualities he values ​​most.

……

In the blink of an eye, Lin Haoran has been in the United States for a week.

Today is March 28th.

In three days, 1982 will become history, and 1983 will begin.

In the past few days, apart from occasional contact with Chairman Walter Riston or Vice President John Reid and meetings with some important figures, he has been spending more time screening New York commercial buildings that are worth acquiring.

A few days earlier, he also met with the U.S. Secretary of Commerce, who was in New York for an event. Due to his connection with Citibank, the Secretary was very welcoming to him.

After all, Lin Haoran is not only an executive director of Citibank, but also a top investor with hundreds of billions of dollars in capital.

At a crucial time for the US economic recovery, such investors are the ones the Department of Commerce most wants to win over.

The two sides talked for more than half an hour, from US economic policies to international trade, from Reagan's economic recovery plan to the trend of the dollar exchange rate.

Lin Haoran's insights impressed the Minister of Commerce, who then extended a special invitation to visit Washington, D.C., before parting.

In addition, he also visited Harvard University, which was at the personal invitation of the university's president.

The last time he came to the United States, he originally went to visit Harvard University in a private capacity, but because he was surrounded by too many people, he eventually accepted the invitation from John Reed and the university to visit MIT and give a public lecture.

This time, when the president of Harvard University learned that he had come to New York again, he immediately contacted him through his connections at Citibank, hoping that he could give a speech at Harvard University.

Because many students at Harvard University now regard Lin Haoran as an idol.

Lin Haoran originally wanted to refuse, but Walter Riston persuaded him that Harvard University was the cradle of American business leaders, and giving a speech there would be very helpful for him to build his network in the United States.

Lin Haoran thought about it and felt it made sense, so he agreed.

Perhaps because Lin Haoran's reputation in the American financial world is growing, there were far more students present this time than when he was at MIT, and the students were extremely enthusiastic.

Afterwards, the president of Harvard University personally accompanied him on a tour of the campus and awarded him the title of "Harvard University Honorary Visiting Professor".

Lin Haoran accepted it with a smile, but felt a little emotional inside.

He dreamed of getting into Harvard in his past life, but he never expected that he would not only get in in this life, but also be awarded an honorary title.

He also visited the "Linmen" association at Harvard University, met Sofia Larson, a Harvard fan who had asked him questions at MIT, and many students who had attended his lectures at MIT.

These people spontaneously formed a "Linmen" association to study his investment philosophy and business philosophy.

Lin Haoran was both surprised and moved when he saw this scene.

He never imagined that he would have such a great influence among the young students of these top universities.

However, he did not interfere too much, because he knew that this was a very dangerous signal for the government.

The fact that a Chinese businessman from Hong Kong has such a large following at a top American university, and even has formed an association named after him, inevitably arouses unnecessary suspicion and vigilance when it reaches the ears of politicians in Washington.

Further interference would be even more dangerous.

Lin Haoran didn't want to cause trouble for himself, so he simply took a few polite photos with the students, offered a few words of encouragement, and then left in a hurry.

The winter in New York at the end of the year was cold, but the sun was shining brightly, its rays illuminating Lin Haoran through the spacious floor-to-ceiling windows.

At this moment, he was sitting in a chair, holding a document in his hand.

On the table in front of him was a thick stack of documents.

Many of these documents had the words "Intention" written on them in large characters above them.

These are the acquisition targets he selected from over a hundred commercial building documents over the past week.

Manhattan's commercial real estate market is in a recovery phase after a downturn, with many owners eager to sell and no shortage of good properties available.

But Lin Haoran didn't want to buy everything. Acquiring more than a hundred buildings in Manhattan at once would be too ostentatious.

Forget about how the US government will view him; the media alone will give him a headache.

He didn't want to wake up tomorrow morning to find the New York Times headline: "Hong Kong tycoon wants to buy Manhattan."

Keeping a low profile is the key to long-term success.

Therefore, he plans to buy about thirty or forty buildings, since real estate isn't the only area he can invest in.

Diversified investment is the key to success.

He wants to buy high-quality assets that have real appreciation potential and impeccable locations.

Only he can do this.

As a time traveler, Lin Haoran knew how much Manhattan's commercial real estate would rise in the next few decades, which areas would become hotspots, and which buildings that seemed insignificant now would become top-tier assets in the future.

This difference in perception is his greatest advantage.

Since he had nothing better to do, he decided to do the selection himself.

Currently, there are as many as 32 Manhattan buildings that have been confirmed for purchase.

The total sale price of these buildings is approximately $9.68 million, less than $10 billion, with individual building prices ranging from over three million dollars to $2.6 million.

The most expensive building is the newly completed Goldman Sachs global headquarters building.

The average price of each of these 32 buildings is just over 30 million US dollars.

It's very cheap.

But he knew that a few years later, in 1987, the total value of these buildings, plus the rental income during that period, would be very considerable!

This deal is a win-win situation no matter how you look at it.

He has too much money. It's impossible for him to invest it all in the financial industry, which is the easiest way to make money. That would be too obvious. His funds will eventually exceed one hundred billion US dollars or even more. When that happens, does he expect to invest one hundred billion US dollars in the financial industry? That's impossible.

It would be better to diversify your investments.

Investing a small portion of your funds in the New York real estate market now, and then having Japanese capital take over in a few years, would be a great idea!

After reviewing the document, Lin Haoran wrote the word "intent" again on the first page.

He has added another building to his list of target acquisitions.

Lin Haoran decided that after confirming a few more buildings, he would stop there. (End of Chapter)