Chapter 291： How much does it cost to buy Palu?

With the delay of time, the Republic of Palu gradually became less confident about their previous offer of 5 billion US dollars, because after calling out this price, people and organizations who had previously expressed interest in purchasing the Republic of Palu, in After trying to quote the price, it was decisively rejected by the Republic of Palu because there was not even more than 2 billion US dollars.

But after that, after they rejected those offers, they did not continue to contact for inquiries, which made the officials of the Republic of Palu a little panic, is it really that their offer is too high?

To know that as time goes on, they are getting closer and closer to the result of the whole country being submerged, then it is obvious that the price of selling the country will continue to fall.

In fact, from Palu's point of view, their initial offer of $5 billion is not unreasonable. After all, there are 12,000 people in their country. If they maintain their lives for a period of time in the future, it will be about 300,000 US dollars per person, which is 3.6 billion US dollars.

In addition, the Palu government has foreign debts. It has accumulated debts owed to governments of various countries, including Australia, and some banks, with a total of about 400 million US dollars, which adds up to 4 billion US dollars.

In the end, it is reasonable to increase the capital of the mutual fund of all the people by 1 billion US dollars, so they shouted the price of 5 billion US dollars. If someone really wants to buy this price at this moment, they will definitely agree without hesitation. Yes, I believe the people will agree.

But who would have known that these people's bids were so low that none of them exceeded 2 billion US dollars. In this case, based on their experience of indebtedness in investment funds, there is no certainty that the citizens will be able to spend the rest of their lives comfortably.

A lot of things are like this. When you don't think about it, you don't think anything, but once you think about it, the more you think about it, the more you think it's a good way.

Just like the Republic of Palu, when they didn't think that they could sell the entire country before the country was submerged by the sea, they just thought about how to deal with it when that time came, and would have no other thoughts.

But when someone suggested that we could sell the country now, they woke up like a dream, and the more they thought about it, the more they felt that this was really a good idea.

But the question now is that although some people are really willing to buy it, their bids are indeed a little far from their expectations. Is it really only to sell the country for a price of 2 billion US dollars?

Just when they were so entangled, the team headed by Erica began to contact Palu and put forward their offer.

When acquiring a country, how to value it? This may be something that many people have not thought about. After all, the overall acquisition of a country by an individual or an organization has never happened in history.

In some ways, however, the company's valuation method can be borrowed.

Countries such as Palu, which have little potential for development and are in a relatively stable state, can be compared to a company valuation method with weaker cyclicality and relatively stable earnings - PE valuation method.

PE refers to the price-earnings ratio, so the company's valuation is roughly its annual net profit multiplied by the price-earnings ratio.

For example, a company's annual net profit is 100 million yuan, and the average price-earnings ratio of listed companies in this industry is about 25 times, so the company can be valued at 2.5 billion yuan.

On the country of Palu, their annual GDP at this time is less than 50 million US dollars. Even if they are calculated at a relatively high 40 times price-earnings ratio, it is only 2 billion US dollars.

Therefore, it is not unreasonable for those individuals and organizations who contacted them to bid no more than 2 billion US dollars. After all, they all believed that Palu would be covered by sea water in less than 20 years. In this case, it is already given. Include a premium for the "Country" qualification.

And Erica's bid on behalf of William Chen to the Republic of Palu is 4 billion US dollars!

Because Chen William understands that it is not possible to simply use the method of valuing the company to value Palu, because some values ​​cannot be developed because of the laziness of their government and people, which does not mean that others cannot develop it.

Moreover, the role that the name "country" can play is difficult to measure with money.

So after hearing the logic of Palu's original $5 billion offer, he made his own bid for it.

Of the $4 billion, it includes a valuation of $1 billion for the country of Palu with an annual GDP of $50 million over a 20-year period; and the relocation of Palu's 120 million nationals from the island to other places The average one-time financial grant of $250,000 per person living in the state is $3 billion.

And after buying Palu, William Chen will take on Palu's foreign debt totaling US$400 million.

In this way, each national will be able to receive a subsidy of $250,000 in addition to the Palu government's capital increase of $1 billion in the mutual fund.

If it's a family of three, that means they get $750,000, and if it's a family of four, it's straight millionaires!

When they first contacted Erica and the others, Palu had some doubts about their bid for $4 billion so easily, not because they were dissatisfied, but because they were afraid that they would not be able to pay the money.

But when the other party revealed that they were buying on behalf of William Chen, Palu immediately felt relieved after a simple verification.

After all, William Chen's popularity can be said to be greater than that of the American commander during this period. If it is him, there is no need to doubt the ability of the other party to pay. After all, his large acquisitions can often be obtained from news reports. See, although Palu is a small country, it does not mean that they are isolated from the world.

The problem now is that William Chen’s offer of $4 billion, plus his commitment to take on the $400 million foreign debt of Palu, adds up to $4.4 billion, which is a little short of their previous expected price of $5 billion.

However, this was also the highest price they got, and it was the closest price to their expectations, which also made Palu and Erica the officials who negotiated with them felt a little embarrassed, especially when they heard that Erica represented William Chen Speaking of, this is their first bid, and it will also be their last bid. This price also represents Chen William's sincerity. If the other party cannot accept it, Chen William will launch the acquisition of the Palu Republic.

In the end, Palu said that it would take a little time to think about it, and then it would take the initiative to contact them when they came to a conclusion.

What Erica said also represented Chen William's true thoughts. He would pay this price to buy the Republic of Palu. On the one hand, in the eyes of the future, after the eruption of the volcano, the area of ​​the island will expand a lot. Moreover, he is also interested in realizing some of his ideals on the territory of this country that will become a "white paper" in the future. After all, as a rebirth, blindly making money and expanding his influence will eventually reach the top. But in the form of countries, there are more possibilities.

Another purpose is to save the lives of the 12,000 people in Palu. After all, according to the prediction of the Eye of the Future, most of these people will not be spared from such a violent natural disaster. If you can buy this country and let all Palu people move to other countries to live in other countries, it will also save them from this disaster.

But these reasons will also be limited, and he will not do it indefinitely.

God only saves those who save themselves. If the people of Palu are really so greedy, then there is no need for anyone to save them. Chen William gave the opportunity How to choose is up to them.

And Chen William wants to buy the country of Palu as an American and become the lord of the country, and the price to pay will certainly not be small. In addition to the purchase of this country, if he wants to gain the recognition and support of the international community, especially the United States where he is now, then the additional price he needs to pay is currently unknown to him.

Therefore, although he has some plans after buying Palu, if the price is really very high, then giving up is the best choice.

Just after Palu got Chen William's conditions and expressed his desire to think about it, Chen William naturally would not give them the leeway to use his own bid to bargain with other parties.

Soon, the citizens of Palu, under the dissemination of the people with intentions, learned that someone had already paid a high price to buy the Republic of Palu, and even the specific plan was known to the public.

Many families of three or four, or even families with more children, get excited immediately after calculating the compensation they can get.

For a time, the entire Palu was full of public discussions about this, and everyone generally showed a very eager willingness to hope that this transaction would be completed.