Chereads / The Wealth Code / Chapter 167 - 0167 Man vs.

Chapter 167 - 0167 Man vs.

  Several investors from Sabine were a bit fidgety at the moment.

  Technically speaking, they and the capitalists from Quriland City sitting on the other side of the table all belonged to the Progressive Party camp, and very often they had always shared some resources and information.

  This is where the capitalists with political camps have an advantage when facing some capitalists with no camp or neutral camps, and they may even briefly form an alliance with the intervention of some powerful figures.

  But they couldn't exactly be considered the same group of people, after all, they hadn't been arching in the same trough all along, not to mention the fact that these people were trying to come and steal business this time, so it was even more unlikely that they would be able to mingle with each other.

  And what really made them feel uneasy was the fact that they externally claimed to have a valuation of seventy million dollars for the Star Trading Corporation, not to mention whether Mark had really used two million dollars to take a three percent stake in the company, in any case, this valuation could never be less than that now.

  This had nothing to do with Mark, if the valuation was lowered, first Mark's shareholding would increase, and immediately after that they might take out wealth beyond their budget to compete for more equity.

  Everyone knows that whoever holds the most stock in a company speaks louder and gets more support and decides everything within a company.

  The love/hate relationship that startup companies have with investors and investment firms comes from this, and they tend to have less equity than those investment firms, which has led to many founders ending up ridiculously removed from the board of directors with a kick in the pants.

  Before, their idea was to negotiate the valuation down as much as possible, and then sing a duet with Lynch to match it, so that the outside world's share price of Star Trading Corporation would continue to increase.

  They weren't worried that Lynch would say no, because it was faster and more profitable than doing business on the ground.

  Raising the market valuation of a company was actually no different from speculating on the price of a piece of artwork in essence, constantly going backwards to raise people's expected value.

  It's just that the speculation of an antique is ultimately waiting for a fool, whereas the speculation of a company's market valuation is to wait for a group of fools after it goes public.

  Nowadays, a large number of capitalists in the Baylor Federation and even in the whole world were shifting from the most primitive physical operation towards capital operation, and they were no longer pursuing the value of commodities, but only the value.

  They had thought that they could get more shares in Lynch's hands for a relatively small amount of money and other things.

  But then a competitor appeared, and if they put the price down, it meant that the other side could also spend less money and do more (get more equity), and once the two sides started competing, the conflicts sharpened, and the more they lost.

  There's also an unsettling young man in the mix, Lynch.

  If they still thought that Lynch was just a kid who got lucky by this point, then they would be truly stupid, and any mistake that could place the two sets of them together would be either incredibly stupid or old and cunning.

  There was no doubt that Lynch didn't look like a foolish young man, and the fact that he had taken care of Mark without a word meant that they were the ones who had looked the other way.

  "Everyone is here for my company ...", Lynch smiled and took a sip of his coffee, the slightly bitter flavor followed by a mellow fragrance, baked just right, he put down the cup and looked at the two groups of people with a good look, and continued to say. "I do not reject the act of others investing in the Star Trading Corporation, I never think that a successful person can achieve success alone, everyone needs some help to succeed."

  "If I succeed, you are those who help me, and vice versa, if you succeed, I am the one who gives you help."

  He set the tone of the little meeting when he said this, that of agreeing to invest in the stock, an attitude that no one could find fault with.

  In order to plunder the wealth of these Federation capitalists, they even pushed for legal provisions requiring companies valued at more than ten million dollars to have multiple "shareholders", and the purpose of doing so could be said to be to forcefully acquire equity.

  Lynch did not oppose the investment but warmly welcomed them, but I do not know why, but they feel a little ... bad taste.

  Immediately after, he only talked about some core content, "In fact, let everyone sit together, just some things I do not want to repeat again and again, I hope you can consider me, after all, I am a young man, sometimes my character can be very bad."

  He also looked at the two groups of people on either side of him, and only after everyone expressed their understanding did he nod noncommittally, "In my eyes my company is certainly the best in the world, but I'm also well aware that it's not objective enough, and we have to respect the market's choices."

  "Not long ago Mark, a famous young entrepreneur from Sabine City, used two million dollars to get three percent of the shares from me, I think this is a relatively reasonable price, what do you think?"

  The people on Sabine City's side were blocked enough by Lynch's few words, the seventy million dollar valuation was also publicized by themselves, and they didn't have the courage to ask Mark if he really gave two million dollars now.

  In case the other side really gave two million, they, the businessmen in Sabine, would have to face the mayor's wrath for causing him to lose money.

  So they put their hopes of fighting back on these businessmen in Quriland City, and for the first time, they hoped that these people would be of some use in keeping the price down.

  Just their silence, let the Quriland side of the businessmen have a ... "roughly the truth is so" idea, did not see Sabine businessmen did not speak out against it?

  They don't know much about Lynch's company, after all, it's another city's company, in this era of inconvenient communication, people will only go to learn about those things that they are interested in.

  Moreover, the one who had sent them here this time was the mayor's personal officer, Noah, who was not moving to tell them that he was very optimistic about Lynch's company, which was telling them to find a way to take a portion of Lynch's company, or at least to be able to attend the company's board of directors.

  As long as they were able to get a portion of the equity, and increase the pressure on the board of directors through these shareholders, they could get Lynch to invest more construction money in Quriland City and provide more jobs.

  Sometimes it has to be said that being a politician in the Federation is really not an easy thing to do, because to be a qualified politician you not only have to figure out politics and its game play, but you also have to know more than enough about the economy.

  These people came with a very simple purpose, and at this time, when they saw that the people on the opposite side didn't speak either, acquiescing to Lynch's statement, they naturally didn't interrupt.

  Both sides of the people do not speak, frankly speaking this also let Lynch some surprise, he had thought that these people will start to suppress his valuation, he even thought about talking about the back he will make concessions on the price, but he will cut the business to turn a company into three companies, so that they still have to a penny a penny to give him the money.

  Just the fact that they chose to opt for acquiescence more or less made Lynch think these people were kind of cute and silly.

  With a nod of his head, he patted the arm of the sofa, this matter was basically finalized, all that was left was the tug-of-war between the amount and the payment method.

  "At least half in cash, that's the bottom line ..."

  This time, someone finally interrupted Lynch's words, and the people who spoke were still the businessmen on the Sabine side, they felt that if they didn't speak up again, the people on the other side would still remain as silent as the fools.

  At that point in time many things would be hard to undo, so they had to open their mouths.

  "That's impossible, Mr. Lynch!" , the person who spoke was thin and tall, in fact, many times when people thought of capitalists, when they thought of businessmen, their first impression was of slightly balding, greasy middle-aged fat men who were also very treacherous and oily.

  In fact, this is just a product of the times, most capitalists actually maintain a very healthy body, because they have a special housekeeper or other people to help them manage their health, they also have enough time and money, with the most advanced and most scientific methods to solve some of the problems in their own body.

  Some scientists have said that the most sophisticated technological inventions in the world were invented to better serve the rich people, and they were never considered to serve the ordinary people from the very beginning.

  And the more successful the capitalist, the stricter they do in terms of self-discipline, nowadays it's hard to appear that kind of capitalist who is so fat that he can't walk without gasping for air, greasy and treacherous.

  Lynch looked at him, and he met Lynch's gaze without fear, his heart was dripping blood at the thought of losing a large amount of extra money, and now he wanted to cut a knife in his head, he would never agree to it, not even in death!

  After expressing his strong opposition, his tone eased a little, "Mr. Lynch, you know the current situation, it's getting harder and harder to recover the cash now, and we have to deal with a lot of other emergencies ..."

  The others also nodded their heads, it was hard to recover the money, but it was easy to spend the money, every month just paying all kinds of salaries, utilities and gas or site use management costs would give them a headache for a while.

  If Lynch demanded such a high cash ratio, some of them might fall into a difficult cash flow situation in an instant, or even cause the capital chain to break.

  So a 50% cash ratio was an absolute no-no!

  Lynch looked at him, "Then how much do you think is appropriate?"

  The tall and thin man gave a result that they had discussed before, "Around 15%, this ratio is reasonable."

  Lynch directly shook his head, "No, it's too little, there's no way I'll agree."

  The tall, thin man and the others looked like they were communicating with each other, then raised it by two points, "17% in cash, this is our greatest sincerity!"

  Lynch directly stood up, he patted his butt and looked down at these people, "I drank alcohol at night, my mind is a bit messed up right now, and we feel that we need to reconsider on this issue, let's wait for tomorrow or the day after tomorrow to talk about it at a time."

  The tall and thin man was also resolute, "Even if it's tomorrow or the day after tomorrow, the percentage won't fluctuate too much."

  Lynch snorted and turned away.

  In fact, the tricks these people played he knew when he had just joined the industry, the reason they didn't care about their valuation of their company was because they probably hadn't thought about how much they were going to spend on their shares from the very beginning.

  It had to be said that Mark was a kind and honest kid, and while these capitalists looked weak, they were the real coyotes!

  Their gimmick is actually nothing special to put it bluntly, the market value of a company is composed of many aspects, if you want to determine how much a company is really worth, just look at his net worth.

  But any company will not talk to others about the issue of net worth, the simplest example, many companies are using bank loans as annual earnings, debt management is a very normal thing, these companies will avoid talking about the issue of net worth.

  Maybe a ten billion dollar market capitalization company says net worth, in a flash the market capitalization is left with a few million, or even still negative.

  So the capitalists are very clever to introduce the concept of expected value into the market value of the estimate, to put it bluntly is the previous probably, probably, have the opportunity to earn money in advance into the value of the company, to do a short-term market value valuation, and then the short-term is the market value of the valuation of the company as the value of the company pushed to the people.

  Lynch even if his company valuation to a hundred million, these businessmen will not feel that this is a headache, to solve it is very simple, they also go to get a valuation of a hundred million of enterprises, and then cross-shareholding will be able to get Lynch's company's shares.

  I'm also 100 million, you're also 100 million, I'll trade 10% of mine for 10% of yours, no problem, right?

  As for my company suddenly closing down in the future, that's because I'm not running it well, you can't blame me.

  And the shares of your company that I hold in my hand are offset against a third-party debtor company, in other words it's entirely possible to hedge a company empty-handed.

  So even if the valuation of Lynch's company is even higher, these people are not afraid, they have the means.

  But what really gives them a headache is the percentage of cash that Lynch requires, which is real cash, there is no way to tamper with it.

  Regardless of whether it was a dollar denomination or a hundred dollar denomination, it was all money, it was all cash!

  Their initial plan was to get a minimum of no less than 30% of Lynch's shares for around two million dollars, but now that the valuation issue wouldn't change, the price wouldn't move, and these people could only tamper with the cash percentage.

  Even now, if they do it their way, it's probably only about three or four million in cash to get thirty-five percent of the shares of Lynch, a company with a market value of seventy million dollars!

  It sounds like pie in the sky, three or four million dollars for twenty million or so shares, but that's the most common tactic in the capital markets, because they'd also be exchanging shares of various companies that are probably potentially worth twenty or so million dollars, property rights and the like.

  Note that it's just possible, the financial markets are full of risk, and there's always something that's just not worth anything after one night.

  Just they may not be able to realize their ideas this time, on the cunning and treacherous, Lynch is definitely better!