When all the venture capitalists heard this, they suddenly realized. Today is indeed the right one! They are really caught up with the big deal.

According to Cai Siqiang's explanation just now, there is nothing to be picky about in terms of product functions of SAL. Even if the functions are not perfect, it definitely has the feeling of being outstanding compared to the existing products on the market.

It was just that SAL developed this navigation device sample. It turned out that everyone thought it was a little bit bad. Now Cai Siqiang unveiled the trump card of acquiring Tomtom Company.

Everyone immediately understood that Sal had completely thought that it lacked production and manufacturing engineering experience, sales service channels, brands, etc. in terms of navigation instruments. However, since Sal had proposed an acquisition plan, it proved that it had been considered more maturely in this regard.

If tomtom, the top three veteran navigation device manufacturer in the industry, can really acquire tomtom, as planned, and Sal will completely make up for the shortcomings in this area.

Among the big guys here, some people have studied the navigation device industry. Of course, they know that Tomtom has had a hard time in the past two years. Under the pressure of their opponents, the market has shrunk significantly, revenue has been regressing, and the stock price has basically reached the bottom. According to market analysts, Tomtom's best ending is to be acquired.

Tomtom now relies on its geographical advantages and first-in-one advantages, and has barely maintained its position as the leader in the European market. The US market has been in a mess. It has retreated from its original second position to the top three. Now it has struggled to support it. I guess it is also looking forward to a relatively reliable acquisition plan.

This group of young people from Sal Company seems to have not yet faded their acne, but they are very experienced in doing things. They can target tomtom. Obviously, they have a thorough understanding of the entire navigation instrument industry. They can think of the entire navigation instrument industry so clearly and directly hit the nail on the head. It is amazing. It is really awesome.

In addition to admiring this group of venture capitalists, they also secretly warned. Judging from this attitude, these young people are not easy to fool at all. It seems that the offer today is not low.

"Dear God of Wealth, I'll invite you all today for this acquisition plan. Frankly speaking, in terms of our sal's current cash reserves, it's not enough to acquire tomtom." Cai Siqiang smiled. "So, we need to beg for all God of Wealth to complete this acquisition." Cai Siqiang joked.

"Mr. Cai, we basically understand the situation. If we follow the product you mentioned just now, I personally think that the plan to acquire Tomtom is very feasible. We, Carlyle Investment, are very interested in joining this plan. But I don't know how much it is to invest in this project?" asked Zhou Chen, senior vice president of Carlyle Investment Group.

"We expect the entire acquisition plan to cost about $1 billion, including the controlling equity acquisition fee of $500 million, as well as the cost of $500 million after the acquisition capacity integration, channel integration, brand promotion and other expenses. According to our forecast, it is expected that the Navigator business's global revenue will reach $2 billion to $2.5 billion in the first year after the acquisition is completed, the company's global revenue will reach $3 billion to $3.5 billion in the second year, and $4 billion to $5 billion in the third year.

We expect the navigator business to eventually achieve revenue of approximately $10 billion per year.”

Billion dollars?

When the four venture capitalists heard this quotation, they quickly calculated it in their minds and felt that the amount was still relatively reliable.

The acquisition of the company spent about US$5600 million to acquire a controlling stake, and US$340 million was left for later operation and promotion, and the integration fee was expected to be spent another US$100 million, which can basically be dealt with.

Together with the outstanding product that SAL just demonstrated, it is a bit exaggerated to create a world-class brand of navigation instruments, but it is quite reliable to make this product into a certain climate.

Although the navigation device market is very chaotic now, if you subdivided it carefully, there are still many opportunities in the high-end market. The most chaotic and disorderly concentrated below 1,000 yuan. In this fiercely fighting red ocean market, not only are there many manufacturers and many counterfeit products, but you also have to constantly bear the impact of built-in navigation from mobile phones.

It is much better in the high-end product market above 3,000 yuan. After all, there are only a few mainstream products on the market, so the competition is relatively orderly, and basically each has its own basic market. These manufacturers will not do anything to kill chickens and retrieve eggs.

Judging from the car sales in recent years, the sales volume of mid-to-high-end cars is huge. In terms of the sales volume of three high-end luxury car brands, BMW, Mercedes-Benz and Audi, it has exceeded 4 million units for several consecutive years, of which the sales volume in the Chinese market alone exceeded one million units in one year.

In terms of global automobile sales, global sales have exceeded 70 million vehicles in recent years. According to professional institutions, the potential market capacity of navigation instrument sales alone exceeds US$20 billion per year. If the total market capacity of high-end products is estimated based on a quarter to one-third share, it is estimated to be as high as US$5 billion to US$6 billion.

With the addition of affiliated businesses such as map services, the market capacity will expand by about 30%. If mobile network information services can be integrated in the future, the entire market will be even more considerable.

Therefore, there is still something to do in the navigator segment.

This information flashed through the minds of all venture capital tycoons. I feel that the acquisition plan of SAL is roughly reliable. With leading technology and Tomtom's current brand and channels, it should have hope in the navigation device market to regain the world's number one throne for Tomtom.

Thinking that the world's number one garmin now has a market value of more than 9 billion US dollars, and Tomtom, after being acquired by SAL, is likely to defeat Garmin again in just a few years and return to the top throne. Then, at that time, Tomtom's market value will return to its original price and replace Garmin's position. In this way, just counting this area, the appreciation of a billion-dollar investment may exceed eight or nine times.

Obviously, from this perspective alone, this is already a pretty good deal. Moreover, Sal itself has so many selling points.

"Your plan looks very good, and the product has advantages from the sample demonstration, but SAL itself is still very young. I'm curious about how you plan to operate this international merger and acquisition? Also, what are the management team after the merger and acquisition?" Liu Chengyuan, chief partner of Idg, asked, "I am a veteran venture capitalist, and this question is so sharp that it hits the nail on the head. It hits one of the biggest weaknesses of SAL's company now.

Cai Siqiang was hit by someone’s weakness, but he was unsatisfied. “Mr. Liu’s problem is also one of the important reasons why I invite you to come today. To be honest, we have no advantages in this regard, but everyone here is a big shot in the investment industry, seniors, and have rich experience in asset operation. I really hope that all seniors can give us some valuable suggestions.”

Knowing what you know and what you don’t know. Cai Siqiang is very bachelor, and he directly confesses the facts and learns from experts. This frank attitude made the four venture capital giants laugh involuntarily.

Liu Chengyuan also felt that his punch seemed to hit the air, but he didn't mind. The team that could see his strengths and weaknesses had too few venture capital deductions he encountered, so it was more trustworthy.

Few entrepreneurial teams think that their business plans and management teams are flawed. Usually, when encountering such entrepreneurial teams that are so confident that they are blindly narcissistic, Liu Chengyuan usually smiles and avoids them.

Comparing IQ with fools is a bad guy; similarly, talking about business with narcissist is a failure.

Since Cai Siqiang can see his shortcomings clearly but find the right person, this shortcoming is no longer a shortcoming.

Capital operation is indeed one of the businesses that venture capitalists are best at. Cai Siqiang is really looking for the right person when he comes to them. Being able to borrow his brain to this point can also be regarded as using the resources of venture capitalists to the extreme.

Well, now everyone has no problem. There are products, plans, funds, and talents that seem to be found. The last question left is how many shares are worth this billion US dollar?

Within a certain limit, the amount of money is really not a problem for venture capital. There is actually no big difference between investments of millions of dollars and investments of hundreds of millions of dollars for them. What they need to care about is what this part of the money is used for, is it reasonable to use? How much profit do they have in this transaction?

"Okay, I have no problems with other aspects. Now let's talk about how much Sal shares are worth of this billion US dollar?" Zhou Chen of Carlyle Investment took the lead in raising this issue that everyone is most concerned about now. "After talking about this issue, let's talk about the investment ratio of this joint investment."

Zhao Jianwu and Dong Feng didn't say anything, and watched calmly from beginning to end. Seeing Cai Siqiang gradually convinced these venture capital tycoons to make up their minds to invest in this project, they had questions about the billion US dollars offered by Cai Siqiang, but they also thought it was a negotiation trick of asking for a price everywhere and paying the money on the spot.

How could we know that at present, these venture capital tycoons have no other meaning to this lion and have begun to talk directly about how much shares these money are worth.

Accidentally, Zhao Jianwu and Dong Feng really felt too surprised. Only then did the two realize how big the gap between them and Cai Siqiang was in business operations.
Chapter completed!