Chapter 1232 A piece of waste paper
Wei Shijie asked anxiously: "Professor Lu, do you think the conditions they proposed are too harsh?"
"Are these conditions harsh?" Lu Fanling laughed loudly: "Mr. Wei, I think you still haven't understood the so-called gambling agreement. In your opinion, it may be a thorny patchwork, but in my opinion,
But it’s just a piece of waste paper.”
"What do you mean?" Wei Shijie was surprised and asked hurriedly.
Lu Fanling said: "What kind of business do investment institutions do? Money makes money. They invest money in a company, wait for the company to go public and appreciate, and then cash out and leave the market. When it comes to betting, investment institutions least want to win.
Because if a company successfully goes public, it is a win-win situation; if the company fails to go public, it is a lose-lose situation.”
Yan Yujie said: "Yes, so in order to avoid risks, investment institutions came up with such a gambling agreement."
"In reality, the operability of the gambling agreement is not strong." Lu Fanling said: "Take Century Sunshine as an example. With your financial situation, developing and building Qingbei Eco-City and building the tallest building in the southeast is
It’s a risky move to survive. If it goes public in the future, everyone will be happy. But if it doesn’t go public, Century Sunshine will collapse. The shares of this kind of company are worthless. Even if an investment institution gets 90% of the shares, it’s just nothing.
It’s a hot potato.”
Yan Yujie said: "Professor Lu, the problem is that if the listing fails, they will not get compensation and have the right to take back the land and attachments on the ground, such as the real estate and skyscrapers we developed and constructed."
Lu Fanling said: "There are specialties in the art industry, and the specialty of investment institutions is investment. If you give them a steel factory or an electronics company, can it be successful? In the end, it depends on the original entrepreneurial team. It can be said that after leaving
Century Sunshine and venture capital have acquired real estate and skyscrapers, but they can’t do anything in Qingyuan City.”
Wei Shijie said anxiously: "We are too lazy to care whether they are having fun or not. What I am concerned about is that Century Sunshine has suffered heavy losses and may no longer exist!"
"Haha, not necessarily!" Lu Fanling shook his head and said: "China still has special national conditions. Chinese entrepreneurs are willing to bet, but few are willing to admit defeat. There are many cheating after the bet fails. What?
Executives threatened to resign, dealers rebelled, employees went on strike, suppliers blocked doors to collect debts, etc., all kinds of tricks
It was all played out, and some people even waved the banner of nationalism and played the tragedy card, saying that foreign capital was setting up a trap to annex national brands. The agreement between the two companies involved national interests. It was so shameless. In the end
Once public opinion stirs up, even investment institutions will not dare to pick up this hot potato."
After listening to Lu Fanling's explanation, Wei Shijie couldn't help but clapped his hands: "Great talk, great talk! According to your analysis, this gambling agreement, just like the warrant you just mentioned, cannot be enforced.
It’s just a piece of waste paper!”
"Professor Lu, what you said is really better than studying for ten years." Ning Xin stood up excitedly, clapped her hands and praised.
"Professor Lu, your analysis gave us a sudden enlightenment." Yan Yujie asked: "Now that venture capital has provided conditions, what countermeasures should we have to minimize the risk?"
"Century Sunshine is in urgent need of financing. Facing an investment of US$100 million, there is no reason to refuse and no room to negotiate terms. As for countermeasures..." Lu Fanling pondered for a moment and said: "I have initially considered these few
aspect."
Yan Yujie held his laptop and was ready to record.
"First, the newly established Sunshine Shares, regardless of whether the bet succeeds or fails, must ensure that Century Sunshine is always the largest shareholder so that it can grasp the overall situation at any time; second, it is recommended that the Qingyuan Municipal Government increase investment and form a development relationship with Sunshine Shares
Building a consortium can not only gain more support for the project construction, but also prevent the failure of the bet. Venture capital will be wary and dare not act rashly. As for the third point, it doesn’t make much sense to say it now. Wait until the project is obtained.
After I succeed, I won’t be too late to tell you.”
Awesome! Awesome! So awesome!
Moreover, the third one, Lufanling, has been sold for a while, but it is probably even more powerful than the previous two!
After hearing what Lu Fanling said, everyone suddenly became enlightened.
Chu Tianshu asked again: "Professor Lu, the second point you mentioned, I feel that it is quite difficult to operate. To be honest, Qingyuan City's finance is now land finance, and we really can't spend too much money to increase it."
The large investment and the formation of a consortium with Sunshine Holdings are likely to cause criticism."
"This is actually easy to do!" Lu Fanling said: "You can set up an urban investment and development company, raise funds by applying to the National Development and Reform Commission to issue urban investment bonds, and adopt the Public-Private-Partnership, that is, the PPP model and Sunshine Shares
By forming a coalition, the problems you mentioned will be easily solved."
Lu Fanling explained that the so-called PPP model refers to the establishment of "benefit sharing and risk sharing" between the government and private organizations with social entities or enterprises based on concession agreements in order to provide certain public goods and services.
The community relationship of "full cooperation" clearly clarifies the rights and obligations of both parties through the signing of a contract to ensure the smooth completion of cooperation, and ultimately enables all parties to achieve more favorable results than expected by acting alone.
The concept of PPP model was first proposed by the British government. With the government participating in the whole process of operation, the government's financial burden is reduced, and the investment risks of social entities are reduced. It has been widely used in developed European countries. While the government bears risks, it also has certain
of control.
It’s just that this model has not yet been applied in the country.
But Lu Fanling went on to say: "Relevant national departments are organizing relevant experts and scholars to study and discuss the PPP model. I estimate that it will also be implemented domestically in the near future. Qingyuan City will take the lead in piloting it, which should be supported and help improve the ecological environment."
By increasing the city’s attention and visibility, the project’s chance of success can be further improved.”
It was almost five o'clock, and Chu Tianshu knew what was going on, and said: "Professor Lu, it's almost time. You still have to go to the city to see your parents, so we won't disturb you. We'll make a special trip to come to you for the relevant details."
Please ask for advice."
"Okay, let's talk some other time." Lu Fanling stood up and said, "It's best to make an appointment during the week. I may not be in Linjiang on weekends. Recently, there have been more invitations to give lectures and seminars from various places."
Chu Tianshu said: "Okay, I will definitely come to visit you again."
Lu Fanling went back to the study to tidy up briefly and took a bag.
Ning Xin discovered that this was a woven bag style leather bag that was just beginning to become popular. She never expected that the details of the professor's life were so trendy and kept up with the pace of fashion.
Lu Fanling took a few people down to the basement again, walked into the garage, and suddenly said: "Oh, this car is restricted today!"
In order to alleviate traffic pressure, several bridges in Linjiang City have implemented odd and even number traffic restrictions.
"Let's take you off." Chu Tianshu said hurriedly. You definitely can't get a taxi here.
"No, I'll drive another car! Traffic restrictions are harmful to people, forcing them to buy two cars." After Lu Fanling said that, he led a few people back outside.
Chapter completed!