Starting out as a drug dealer in 1988

Song Weixuan didn't hesitate, but continued, "Looking at those industry giants, which one of them doesn't have thousands or even tens of thousands of stores? These are the potential that supports their development.

Because dealers have their own interests and it is impossible for them to be completely on the same page with manufacturers. Manufacturers cannot control every dealer as they wish, as they have their own demands.

Only by owning your own store can you further expand your business capabilities in terms of sales."

Zhao Wenhao nodded, indicating that he agreed with Song Weixuan's opinion.

In fact, this is true, whether from the perspective of interests or from the perspective of management.

However, it is not so easy to achieve this.

Management team, capital requirements, and logistics supply, these three alone are already obstacles for most manufacturers.

Song Weixuan's purpose of coming here was very simple. All the previous words were to pave the way for the next step of making requests.

"Mr. Zhao, you don't have to worry about funding. Our Song family is a major shareholder of Meifeng Bank, and my father is also the chairman. With Hengyuan Electronics' strength, we can easily obtain a low-interest loan of less than 1 billion.

In addition, Goldman Sachs has cooperation with many large chain stores, such as Wal-Mart, Haifeng, etc. If Mr. Zhao is willing, we at Goldman Sachs can help introduce your employees to them for a certain degree of personnel training.

I think this kind of sincerity should be enough!"

Song Weixuan seemed very confident. After he finished speaking, he leaned back on the sofa, lit a cigarette, and looked into Zhao Wenhao's eyes.

Zhao Wenhao didn't say anything. He took the cigarette handed to him by Song Weixuan and lit it for himself.

To be honest, if Song Weixuan can really do all these, especially provide support in personnel training, it will indeed show his sincerity.

It’s not that Zhao Wenhao doesn’t know how to develop chain stores, but he wants to conduct systematic training. At least for now, he doesn’t have the energy to build such a team.

As for the need for funds, in China, with Hengyuan Electronics' current influence, a loan of 200 to 300 million yuan is not a big problem, but a loan of 1 billion yuan is indeed a bit difficult.

Unless he bribes and drags the bank executives into the water.

Therefore, although Song Weixuan had not yet put forward his conditions, the temptations he offered made Zhao Wenhao somewhat tempted. However, he did not show it on his face.

"Then I wonder what Mr. Song's request is?" Zhao Wenhao remained calm.

"30% equity, and subsequent priority investment rights." Song Weixuan finally revealed his true colors.

If Hengyuan Electronics goes public in the future, it will inevitably continue to raise funds.

Calculated in this way, Song Weixuan's requirements are almost the same as those of Citibank.

However, Citigroup has only proposed to help Hengyuan Electronics go public for the time being, and no other ancillary conditions have been proposed yet.

Song Weixuan represented Goldman Sachs and the Song family, and was quite sincere.

Unfortunately, Zhao Wenhao certainly couldn't agree to these conditions.

The problem now is that if you really want to develop the Hengyuan home appliance brand chain, you will inevitably need a lot of money for initial investment.

In addition, as Song Weixuan pointed out, if training management is supported, its development progress will definitely be greatly improved, especially in the domestic market.

Zhao Wenhao was well aware that the international trade market had been booming over the past two years. Currently, international trade accounted for over 50% of Hengyuan Electronics' business.

The problem is that, with the passage of time, the Asian financial crisis is bound to occur in three years. When that happens, international trade will be severely hit, and it will take years to recover.

If Hengyuan Electronics relies so much on international trade, it will inevitably suffer a great impact.

This is also one of the reasons why Zhao Wenhao plans to shift the focus of sales to the domestic market as much as possible.

Zhao Wenhao remained silent, calculating the gains and losses.

Originally, he was thinking of finding a way to borrow 100 million or 200 million yuan from a domestic bank this year, starting with the more developed provinces in the country, and slowly expanding into one city at a time.

Wait until the management team is familiar with the business and has sufficient funds before setting up operations on a large scale.

But now Song Weixuan has brought a new way of cooperation, which forces him to calm down and rethink.

"30% is too high a stake. I can't agree to that. Furthermore, I need to make it very clear to you that control of the company must be in my hands. Even if the company goes public in the future, I must remain the largest shareholder."

Zhao Wenhao shook his head and did not agree to Song Weixuan's request.

As if anticipating Zhao Wenhao's answer, Song Weixuan didn't feel surprised or discouraged at all. Instead, he sat up straight and asked, "So, how many shares of Hengyuan Electronics are you willing to give up, Mr. Zhao? And how will the company's valuation be calculated?"

Zhao Wenhao fell into deep thought again, and Song Weixuan did not urge him, but waited quietly there.

It wasn't until two minutes later that Zhao Wenhao raised his head and said in a very firm tone, "10%. The company's valuation cannot be less than 50 billion. Of course, if necessary, you can arrange for an accountant to conduct an inspection and calculation, and I will arrange for personnel to cooperate."

Zhao Wenhao went through a struggle from originally planning to hold on to the capital until the end of this year to finally agreeing to give up 10% of the shares first.

He firmly believes that this year's performance will not be bad and will definitely reach a higher level.

By that time, the company's valuation will surely rise to a higher level.

But the financial crisis will break out in three years. If the company does not arrange expansion before then, it will suffer a great impact.

If we really have to wait until the end of the year, another year will have passed.

Whether I can implement my plan perfectly in the remaining two years is really uncertain.

Besides, Zhao Wenhao also needs funds now, at least in terms of the layout of Hong Kong Island, he also needs a lot of funds.

Therefore, giving away 10% of the shares upfront and calculating the company's valuation at 50 billion may seem a bit unprofitable now, but overall, the benefits outweigh the disadvantages.

When Zhao Wenhao said this, he thought Song Weixuan would reject it outright.

But to his surprise, Song Weixuan only thought for ten seconds before standing up. "Mr. Zhao, I, the agent for Goldman Sachs, and the Song family agree with your opinion in principle. But I need to go back and discuss it with them before I can give you a definite answer."

In addition, we need to re-summarize your company's financials. I think Mr. Zhao should understand this."

Zhao Wenhao seemed very surprised. He really didn't expect Song Weixuan to be so decisive.

This forced him to re-examine the young man.