At the beginning of the negotiation, Arthur threw the bomb, which really surprised the five controlling shareholders of AMC. Originally, they thought that the Englishman on the opposite side was already a fish on the chopping board and could be left to them to kill. Now it seems that the other party''s determination to buy AMC is not as big as they think.
The AMC management representatives who were marginalized in the negotiation always looked serious and indifferent, as if this negotiation had nothing to do with them.
Although Arthur''s attitude has indeed played a role in the negotiation, there is still no way to change the attitude of the five major controlling shareholders, who are full of confidence and have no fear. Especially on the issue of debt and IPO, they are not compromised at all.
As soon as he came up, he was stuck. After two hours of negotiation, there was almost no progress at all. This made Arthur feel helpless and angry about the face that Arthur wanted to buy the five major holding funds according to our price, and if it was too expensive, he could not buy it.
"These Greedy Bastards!"
Arthur with a gloomy face and his men left the skyscraper holding company building and got into the car. He cursed angrily. Although he had psychological preparation, he did not expect that this group of Wall Street vampires would be so arrogant, greedy and crazy.
Not only did they refuse to reduce the equity price of US $1 billion, but they even wanted to give Arthur the repayment of short-term debt. What''s more, they also wanted Arthur to promise that if AMC went public in the future after his successful acquisition, the five of them would be the underwriters for bond issuance.
"You really think I''m a lamb to be slaughtered..."
In the carriage, Arthur narrowed his eyes and sneered. To tell the truth, this acquisition of AMC cinema line, and this group of old wall street foxes, either lose a good business opportunity, or become the God of war again.
He should try his best to lower the interest rate of the new debt and extend the borrowing time as much as possible. At the same time, he has to face the cutting off of the five major private equity fund shareholders to minimize the transaction price of AMC equity.
He also knew that, in the eyes of many, even his men believed that his goal would be almost impossible to achieve unless there was a miracle.
"Hehe, make an appointment with Gary Lopez, chief executive of AMC. I''ll invite him to dinner and have a chat with him alone."
Hearing the boss''s order, the person in charge of the negotiation with the car did not help but brighten his eyes and said in a hurry: "I understand. I''ll call you immediately to ask for an appointment."
Arthur looked at the man who took out his mobile phone. The corner of his mouth rose slightly. He leaned back on the car seat. His fingers gently tapped on the armrest of the car seat. He narrowed his eyes slightly and sneered.
To tell you the truth, it is extremely difficult and extremely important for cross-border acquisition across the Atlantic Ocean to know yourself and the other. But the management is the enemy is the friend, is undoubtedly the most important. In the case of merger and acquisition, what kind of countermeasures should the management take? Confrontation, observation or cooperation? Much depends on the attitude and actions of the buyer.
In the history of M & A, for the former management, buyers can use Thunderbolt means to force them back, or they can use sugar coated cannonball to lure them back. In the field of merger and acquisition, the term is "golden parachute", and they can also be tied together to share the interests, the so-called "golden handcuffs" plan.
Arthur has already thought well that he will pull the members of AMC management into his own camp and deeply bind himself with the management to acquire AMC
we should know that no one but the management knows the whole picture of AMC operation. Without the escort of the management, he would not try to acquire AMC.
Why is management so important? For the buyer of M & A, a comprehensive and detailed investigation is impossible without the cooperation of the management. Arthur can also be said to be an old hand in the acquisition industry. The sponsor must understand his target company, because the success of the merger depends on the buyer''s accurate identification of how much debt the company can bear, and accurately calculating which budget can be reduced and which businesses should be sold to repay the loan.
Any mistake in a decision could prompt banks to ask for early recovery of loans, details only management knows. Otherwise, the wrong calculation method or incorrect prediction will lead both sides into huge debts.
When buying the coastal power plant, Angela, his financial adviser, said that in some ways, a merger is like buying a used car. The annual financial statements and some public information of the target company are like classified advertisements. These materials, like advertisements, contain a lot of useful information, but sophisticated buyers know that a smart accountant can selectively disclose information based on the company''s interests.
Anji also explained that after seeing the advertisement, the used car buyer would communicate with the owner, check the car himself, and drive the car around for a few times. Compared with buying a second-hand car, the buyer has to determine exactly how many kilometers the car can still run, which parts need to be replaced, and what maintenance and repair should be done in the future. If those car sellers don''t let the buyer kick the tire to see if it''s strong, the buyer can only stay away from the used car.
If you want to take the initiative, you have to convince management. Only in this way can we see all kinds of confidential information of AMC. Only with the help of the management, can Arthur know where to get money, where to cut the budget without affecting the operation of AMC, and what assets can be sold without affecting the performance. Otherwise, he can only wait outside the door or feel the stone to cross the river.Of course, according to U.S. law, the acquired company must send personnel to cooperate with Arthur''s investigation, but there is no provision in the law to what extent AMC cooperates.
If the management doesn''t cooperate, the acquisition will be a disaster. CEOs of American enterprises also understand that wealth depends not on wages and bonuses, but on equity and options. They don''t have to get upset with money.
Therefore, the breakthrough point of Arthur''s merger and acquisition of AMC is to find the management, show the cards, and cooperate with the management honestly, but never give up the control of the company.
However, there are also barriers to working with management. AMC''s current private equity fund company once had an equity incentive, which was the stock option plan in 2004. If AMC''s control right was transferred, the equity incentive implemented by the former shareholder would automatically become invalid. How to calculate the loss of the management?
Of course, it''s to collect all the money according to the order and compensate for the cash. Arthur will not be stingy in this respect. As long as he can persuade the management to cooperate more effectively, what can Arthur do if he is more ambitious!
"Boss, Gary Lopez promised to meet us. He seemed surprised that we had found him so soon
"An accident? Not necessarily... You know, any successful LBO is inseparable from a series of data forecast, profit, sales volume, and the most important cash flow. These data can reveal how much debt a company can repay without affecting its operation. These data are the key to negotiation.
For the M & A, a correct bidding price is everything, because the higher the price, the more debt the company has. Even the best companies can be crushed if they have too much debt.
And only AMC''s management, who is familiar with these data, as CEO of tagari, is more clear that anyone who wants to buy AMC can''t bypass them.
The five funds will suffer if they wait so slowly for the management! " Arthur sneered and said that in the previous negotiations, we can see that the five major controlling shareholders have been ignoring the management of AMC. In the whole negotiation, as the representative of the management, Gary Lopez did not say a word, just like a irrelevant observer.
"But I am different. My idea is to make a fortune together! Benefits to management have never been an expedient for me to succeed in an acquisition. The acquisition and listing of coastal power plants is a good example, isn''t it? Next, I''m going to offer them a whole salary system to tie the management to my AMC chariot
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