As he spoke earnestly, he lowered his voice and gave the impression of sharing inside information: "The British government holds a large number of shares in state-owned enterprises, including the behemoth that is British Leyland."
It owns numerous brands, but its operations... frankly, are a mess! The labor unions are powerful, production efficiency is low, losses are severe, and it's a huge burden on government finances.
Then he mentioned the three car brands that Lin Huowang had targeted for acquisition.
Picking up a pre-prepared briefing containing detailed research and internal data on three car brands, he began analyzing the targets for Lin Huowang one by one:
"Land Rover: This brand is special. Its off-road performance is renowned, especially in the military and special fields, where its position is hard to shake."
Although it belongs to Leyland, it is relatively independent, and its reputation and image have not been completely ruined.
In terms of the likelihood of a sale, it might face relatively less resistance. The valuation… a preliminary estimate is perhaps between £100 million and £150 million? This is an internal valuation given by a longtime friend; of course, more detailed due diligence is needed to provide a more accurate figure. However, this price would include assuming all of Land Rover's debt.
"Rover: This is one of Leyland's core car brands. It has a long history, but its product line is aging and its market competitiveness has declined significantly, making it a major area of losses."
Moreover, the union is the most entrenched force within the company. If it were to be sold, the price might not be too high; a few tens of millions of pounds might suffice.
However, once acquired, managing it effectively is extremely difficult; the ensuing labor relations and pressure to transform will pose significant challenges.
MG: Focuses on sporty sedans, has a loyal following, and has a unique brand image.
However, it is also mired in Leyland's problems, with chaotic production and poor quality control.
Its value lies in its brand history and sporting heritage. There's a possibility it could be sold separately, potentially for a slightly higher price than Rover, but only marginally, estimated at around £50 million to £80 million.
Sure enough, money is worth more now!
In today's world, wouldn't each of these car brands be worth hundreds of millions, or even billions of pounds?
The price is incredibly low, Lin Huowang was immediately excited, and a smile flashed across his face.
Mai Lihao also noticed the change in Lin Huowang's expression. He gently put down the briefing, looked directly into Lin Huowang's eyes, and kindly reminded him, "Young Mr. Lin, I must remind you that acquiring any company is not just a matter of money."
Unions, redundant staff, outdated production lines, and research and development upgrades requiring huge investments... these are all huge pitfalls.
The British government is eager to get rid of its burdens, and there may be room for price negotiations, but the integration difficulties and the required investment after taking over will be beyond imagination. Have you really thought this through?
Lin Huowang also regained his composure and listened quietly to Mai Lihao's advice, while his mind was quickly processing this key information.
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