"Ah, fine! Let's stop talking about them. As long as it solves the problem, it's good. Right now, I should think about financing. You're more familiar with this area, hehe."
"You really need to stop pushing your luck. I'm here on vacation, not to be your personal consultant!"
Jim glanced at Carter, who was once again trying to get free advice, and pretended to be angry. But perhaps out of friendship or sympathy for those in need, Jim eventually started to offer serious advice.
"For financing, it depends on which route you want to take. You've already used debt borrowing and government support. You can't rely on those any further. What's left are a few other options."
"First, developer fundraising. Bring in a few more development companies to join in and work together!"
"That..."
Carter pondered. Excluding the direct financial support from local government, his actual investment totaled around $140 million. Even if he brought in new development companies, he could maintain enough control to ensure the construction contracts would not be affected.
However, having such concentrated funds might make other development companies suspicious and hesitant to join, fearing they wouldn't have any say. But if he invested less, he wouldn't feel secure either.
"Are you worried?"
Seeing Carter's hesitant expression, Jim smiled and asked.
"I don't think you need to worry at all. Your financial advantage is too significant. Unless they manage to work out a deal with the government representatives, they can't interfere with your choice of contractor. Your goal is to get DOG Construction, right?"
"Exactly! If the contractor isn't DOG Construction, what's the point? But my concern isn't about that. I'm worried that if I invest too much, they'll feel insecure and not want to join. But if I invest less, I won't feel secure either. Any other channels?"
"Yes, the second option is equity financing. Break up the shares of some of your companies and sell some stakes, like giving up 30% of DOG Construction's shares for cash."
Jim was still speaking when he noticed Carter's gaze shifting towards him. He immediately waved his hands in alarm:
"Don't look at me! Don't try to con me. I'm not interested in that stake!"
"Why not?! You don't think it's valuable?!"
Carter slammed the table and cursed. What kind of attitude was this? His DOG Construction was clearly a top-notch company with a large employee base... well, maybe not that big. Carter couldn't keep up the charade.
Seeing Jim's expression of "I'll just watch you act," Carter deflated.
This company that barely scrapes by wasn't something he could confidently pitch, especially to someone like Jim Rogers. Seeing Jim's resolute look, Carter knew no amount of pleading would help.
"DOG Construction doesn't interest me, but your HT does."
"Don't even think about it!"
Havanatacos was a cash cow! Could he possibly split that?
One store earned $560 a day; ten stores brought in $5,600; a hundred stores, $56,000...
Jim Rogers had a net worth of only $14 million. How much cash flow did he have? Did he think a few million would buy 30% of HT's shares?
"In your dreams, Jim! There's no way I'm giving up those shares!"
Carter jumped up from the couch, pointing at Jim and shouting.
He had felt guilty for trying to trick his good friend, but now? Jim's move was even bolder!
"Calm down, sit down! Listen to me!"
"No listening, you turtle..."
"HT is doing well now, but once the economy recovers, it won't be as good! Think about it: with 1,000 stores, each earning $250 a day..."
"Stop chanting, stop chanting... wait, are you insulting me?!"
Carter, chanting in Chinese, suddenly stopped and stared at Jim.
"Of course not. Hear me out! Let's assume 1,000 stores, with a monthly gross profit of $7.5 million and annual earnings of $90 million. After subtracting the expanded staff costs, administrative expenses, and other..."
Seeing Jim start to rattle off figures, Carter resumed chanting:
"Not listening, not listening..."
"Assuming $70 million in annual net profit, think about how long it will take to reach 1,000 stores. Six years? Eight years? Ten years? Without any prior..."
"Not listening, not listening..."
"And in that process, you'll need vast amounts of capital to build the supply chain..."
"Not listening, not listening..."
"I'll give you $4 million for 2% of the shares..."
"Not listening... huh?! Four million?!"
Carter, shaking his head, stopped abruptly and rubbed his ears in disbelief, looking at Jim on the verge of a breakdown.
Excluding store value, HT's total investment was only $10 million. Including 20% of fifty stores, it was about $12 million.
But if Jim Rogers was willing to pay $4 million for 2%, that valued HT at $200 million?!
Wow!
Carter's eyes lit up. Though valuation isn't the same as actual value, when a top analyst like Jim Rogers thinks it's worth $200 million, that's something!
Considering HT had only been operational for three months and fully operational for just one month, this offer was incredibly tempting. Jim's offer valued HT at a third of its current worth but only asked for a fiftieth of the returns.
This... this...
"Not listening, not listening, you turtle..."
"Bang!"
Jim threw a water bottle at Carter, finally snapping:
"Enough! Stop chanting! You greedy little pig! Just name your price!"
In Wall Street's lexicon, "pig" denotes greed, not stupidity. Hearing this "praise," Carter grinned and held up his hand:
"Five million!"
"Get out! Just leave!"
Hearing Carter's counter, Jim's mouth twitched, and he pointed to the door.
"Calm down, sit down! Listen to me!"
Carter, chuckling, used his strength to press down Jim's struggling arm, forcing him back onto the couch:
"Think about it! Five million now sounds high, but you just said it yourself. With 1,000 stores and annual net profits of $70 million, that 2% would earn you $1.4 million a year! You're only investing five million. What do you say?"
As Carter boasted, he noticed Jim muttering under his breath. Curious, Carter leaned in to listen:
"Not listening, not listening, you turtle..."
Hahahahaha...