In Han Chudong's vision, next year Baofeng Electric will expand into cities with larger populations close to Los Angeles, such as Long Beach and Orange County.
If nothing goes wrong, once we have accumulated enough supporting resources, we will take over the entire California chain store sales market in one fell swoop, increase our market share to a considerable number, and then directly skip the middle buyers and negotiate business with those home appliance manufacturers. So far, the development has been relatively smooth.
Before coming here, I wanted to take the opportunity to investigate the market, but the Rainbow Mask Company is located in the northwest corner of Long Beach, close to the Pacific Ocean, and some distance away from the city center.
Right now.
Han Chudong turned his head and asked a bald old man named Clifton Nett, "This is one of the three companies you told me about yesterday, right? Are you sure the shareholders are willing to divest part of the business and sell it to me at a low price?"
Mr. Clifton Nett has a rather special career. He and his friends co-founded a company that provides mergers and acquisitions and restructuring services for small businesses, including target selection, negotiation, packaging, etc.
The main business on weekdays is to acquire some low-priced enterprises with poor performance but certain advantages, reorganize and package them to form more competitive companies, and then sell them to businessmen who are willing to purchase them, making a high profit from the difference.
Take this business for example, what Han Chudong wants is sales channels and talents with real experience in cosmetics research and development to save time and energy.
After investigating for a while, Mr. Nate selected three companies that were on the verge of bankruptcy and could divest their businesses. Rainbow Mask was one of them.
"As long as the right price is given, there is nothing that cannot be traded. Anyway, it is about to go bankrupt. I believe the shareholders will be happy to get some money back and also transfer the employees to avoid paying high severance costs," said Clifton Nett.
This company is not important. What is really valuable is a cosmetics research and development laboratory located in San Francisco. If it is confirmed that Han Chudong is willing to spend money to acquire it, he can make a considerable profit from it.
As for the Rainbow Mask, apart from some unimportant sales channel resources, it has neither technology nor brand heritage.
There is really no reason to raise the price, so we just charge the service fee honestly.
Therefore, the bald old man was more calm and told the truth to the employer who paid him for help.
They were waiting outside the factory for the shareholders of the Rainbow Mask Company, but it was not time yet.
Han Chudong nodded to show that he understood.
He stood by the window and looked into the factory. There were only various raw materials and an old machine production line. It had stopped working, and unsold goods were piled up in the corners.
I am a little worried that my investment will be wasted like this company. In the field of beauty and skin care, the R&D and production links are not difficult, but the difficult part is shaping the brand image.
How to make the customer base accept new products, feel that they are effective, and be willing to spend money to buy them is the key to opening up the market.
The two previous successful projects were the source of Han Chudong's confidence in entering a new field. Similar to using the super magic ball to open up the toy market, he planned to use the new facial mask that had not yet appeared to open up the market to open up the beauty and skin care market and occupy a place in it.
The idea is good, but the preparation stage is rather troublesome and the investment required is not too small.
Fortunately, there is some money available in the company account. We can’t just keep it in the bank and earn interest. We need to find suitable projects and invest the money to make more money.
…
A few minutes later, a pickup truck arrived.
There are three shareholders in the Rainbow Mask Company. They all came to discuss business. After introducing themselves and greeting each other, they went into the factory for a tour.
There are only a few products in one series. In the past, they made money by selling at low prices and high volumes. In recent years, more and more companies have entered the beauty and skin care market. Through mergers and acquisitions, some giants with more funds have emerged, and they are frantically advertising to shape their image and promote their products.
Customers recognize branded goods, and small businesses are having an increasingly difficult time. Famous products are hard to sell, but low-end skin care products are not popular even at a discount.
After being so busy this year, the three shareholders did the math and found that they had actually lost a lot of money.
The company was originally planning to close down, but suddenly some businessmen showed up and wanted to buy it. Of course, they were very enthusiastic. No one would go against US dollars, and it would be better if they could recover some losses.
Among the shareholders was a middle-aged white woman named Shope. She couldn’t guess Han Chudong’s age, but she thought he looked very young, even younger than her son.
The suit, tie, leather shoes, and the staff assistants beside him all told Ms. Shope that Han Chudong was quite wealthy. He took his company's products and tried hard to sell them: "I have been using this product. I worked at Maybelline's New York laboratory. In fact, its main ingredients are similar to Maybelline's masks, but the sales volume is low because of the lack of funds for advertising.
If you buy my company, I can start production at any time. I can help you contact raw material suppliers and retail stores. Many old customers still like this product. Come and smell it. It smells so charming. "
Han Chudong opened the lid and smelled it, and it felt like the smell of Meijigang, which was not as good as the Frog Prince and Dabao.
He has personally tried hard masks and found that they are all similar in fact. They can moisturize the epidermis, but they are a little lacking in product positioning, smell and convenience.
There is no wrong version in the 1619 book forum!
It was not a very important business, so I said straight away: "I don't want machines, factories, inventory, etc. I just want a company name and some employees with experience in cosmetics sales and production. I am preparing to start my own business to develop products and plan to launch them next year, so I am too lazy to spend time starting from scratch.
Isn't this good? It prevents many old employees from losing their jobs. Those who pass the interview can come to work in my company, including you. I like the name Rainbow and am happy to give you a new job to help me promote my products. For this, I am willing to pay... $15,000. You can sell the machines and inventory at a low price, sublease the factory, and recover some losses. "
"...I'm sorry, that's not what Mr. Clifton Nett said to me when he called me. He said we were going to acquire the entire company." Ms. Shope seemed a little unhappy, and her mood showed on her face.
Mr. Nate guessed Han Chudong's attitude and said:
"I'm Clifton Nate, the one you spoke to on the phone. When I contacted you, I just said it was possible, maybe you misunderstood something.
This scale obviously does not satisfy us, not to mention that Mason is willing to provide you with job opportunities. The scale of his investment will be as high as millions of dollars. I suggest you think about it. No one will pay you so much money for a company name. I see that the factory has been shut down for a long time, and there is dust on the belts. You said that the performance is good, which affects our judgment. "
"…Indeed, they are still in production, but we produced too much some time ago and have not yet digested the inventory. Seventeen salesmen are helping with sales, and they will all be sold out soon."
No one wants to say the worst about the situation.
Ms. Shope did exaggerate the size of the company when she contacted Mr. Clifton Nett, otherwise Han Chudong would not have brought Accountant Wang and the lawyers over.
It's just a very small company, so there is no bargaining power.
The two sides had a brief communication.
The three shareholders of Rainbow Mask Company walked to a nearby place to discuss for a while, and decisively agreed to Han Chudong's proposal.
The only requirement is that the company name and trademark can still be used before the stock of masks is sold out...