A gambling agreement is an agreement between the acquirer and the transferor regarding the uncertain future when they reach an M&A (or financing) agreement.
If the agreed conditions appear, the financing party can exercise a right; if the agreed conditions do not appear, the investor can exercise a right.
Therefore, the gambling agreement is actually a form of option.
To put it plainly, the two sides negotiated an expected goal. If Cao Xingyu achieves it, Xie Qing will give some rewards. If it fails, Cao Xingyu will pay compensation.
Of course, how to pay and how much to pay are all negotiated.
And this bet goal can be any quantifiable indicator of the company's profit, scale, turnover, annual growth, performance and so on.
As for the purpose of gambling, it is to protect the interests of both parties and to further increase and expand the interests of both parties.
On the side of the financing party, they can obtain more funds and other additional terms based on the difficulty of the gambling terms.
On the investor's side, the return on this investment is also guaranteed. As long as the invested company does not go bankrupt, there will be basically no loss, and it is almost certain to get a lot of income.
Because if the company reaches the gambling clause, it means that the company is developing very well, and the shares in the investor's hand will naturally rise, so he must be happy to see it happen.
And if the gambling clause is not reached, it is better to say that the financier needs to pay compensation in accordance with the agreement. This compensation can be stocks, cash or other equivalent assets, etc.
The investor who receives the compensation will still not lose money.
So in summary, investors definitely prefer the gambling agreement, because the protection for them is greater.
And this is also the reason why Cao Xingyu chose this approach, which allows Xie Qing to ignore the business plan for the time being.
Of course, not any entrepreneurial company can do like Cao Xingyu.
Because even if you put forward a gambling, investors are likely to listen to your business plan. Otherwise, if you spend all your money in minutes and declare bankruptcy, the gambling agreement will be worthless.
The difference between Cao Xingyu's ability to do this is that his company has fully demonstrated some "strength."
The accumulated funds of tens of millions of consumption and 100 million bonus activities on the Internet have rushed to 200 million.
In addition, the store's various unbelievable large-scale measures and so on.
These were all achieved within just one or two weeks of the establishment of the company.
These two points alone are enough for Xie Qing to let go of some worries about whether the company will go bankrupt.
And the fact is indeed the case.
When Xie Qing heard Cao Xingyu's gambling agreement, her eyes lit up.
How did you forget this?
"According to the strength shown by the capital behind the other party, bankruptcy is definitely a matter of low probability, or there is no possibility of bankruptcy in the short term. Otherwise, why do you invest one or two billion in the first?
"The other party has just created it, and it is normal that the business plan cannot be disclosed."
"In this case, as long as I set the gambling clause well, this method will undoubtedly greatly reduce my risk!" After Xie Qing thought about it in his mind, he almost made a decision in an instant.
Xie Qing smiled and said: "Your proposal is very good. It seems that you are very confident in the business plan. You dare to take the initiative to propose a gambling agreement at the beginning of its establishment!"
Xie Qing's remarks are very practical, but the real situation is indeed true.
Regardless of the size of the company, companies that dare to make a bet when financing are fully confident in their company's development, otherwise no one will make fun of their own interests, especially those who are very savvy capitalists.
And this actually made Xie Qing take a higher look at the mysterious capital behind this company.
"You must have confidence." Cao Xingyu smiled and said casually:
"It's true that our business plan was officially launched after five years of research, three years of deduction, and one year of small-scale testing."
"It's just I didn't expect that when we just started, Mr. Xie discovered it. Mr. Xie is so insightful that our boss admires you and praises you constantly."
"It took so long?" Xie Qing raised his eyebrows slightly, a little surprised.
In nine years, this business model should be very reliable!
And it also fully shows that the capital behind it is very powerful! Can actually spend so much time and energy on one thing!
At the same time, she was secretly smug in her heart, she seemed to have a good vision!
No one else has noticed yet, I just shot it so quickly!
"Hehe, of course, because of this, we invested so much money in the beginning. Otherwise, Mr. Xie, do you think we crossed the river with our eyes closed?"
"That's impossible. In fact, we have already planned for the future development, including the profit model, which is quite innovative. In this regard, Mr. Xie, you will wait and see." Cao Xingyu said nonsense.
"Well, I can see this. Without a plan, it is impossible to invest like this." Xie Qingshen nodded with approval, convinced of what Cao Xingyu said.
"Mr. Xie is really a sensible person. It is so comfortable to chat with someone like you." Cao Xingyu said with emotion.
"Hehe, your kid is also pretty good to be serious." Xie Qing sat down and said:
"If it weren't for my good temper, the average investor wouldn't have the time to listen to your nonsense just now."
Half and half, I can only say that you are too curious about our company, which makes you unwilling to leave... Cao Xingyu muttered in his heart, and replied:
"Well, our boss specifically said that Mr. Xie's good temper is well-known in the circle, and now it seems to be true!"
"Hehe, that's natural." Xie Qing laughed and said in other words:
"Well, since you took the initiative to put forward a bet, you must have a plan for this, right? Let's talk about it first."
"This..." Cao Xingyu shook his head: "I'm sorry Mr. Xie, we don't have a plan."
And I don't know how to make a plan... Cao Xingyu added in his heart.
Time is running out, so he can think of these two pancakes well.
What's more, he doesn't have any experience with gambling agreements, knowing that this stuff is all because he saw it while watching the news before.
"No plan?" Xie Qing was slightly surprised. She thought that the other party had already thought about it a long time ago. I dare not.
"Yes! Because we didn't think about financing, Mr. Xie came in a hurry, we didn't have any preparations!" Cao Xingyu casually made up.
"Oh, that's true too." Pursed her lips, Xie Qing tilted her head and continued: "Which way should we determine the terms of the bet?"
Obviously, he was asking the investment elites next to him.
"Mr. Xie, with all due respect, this company really has no need for any investment." Elite A boldly persuaded:
"Judging from their current model, there is no room for profitability and imagination, and they dare not even disclose a business plan. This is too abnormal."
"Well, my idea is the same. In this case, it's too strange to bet on the right." Elite B echoed.
"That is, normal people would not choose to invest in this company." Elite C said seriously.
"It's you again!" Xie Qing turned his head and glared, "I turned the corner and said I was abnormal? You get out of here!"
"Eh..." Elite C smiled bitterly with an annoyed look, why can't I control my mouth!
Annoyed to annoyance, Elite C did not dare not listen to Xie Qing's words, and silently walked out of the meeting room.
"The people that Mr. Xie brought don't seem to be very good. They still don't look at us?" At this moment, Cao Xingyu sneered:
"Our boss can throw so much money into it, don't you think we will be fools? If there is no profit, who would do it?"
"The reason I just said is very clear. There are also our difficulties if we don't disclose the business plan. If Mr. Xie can understand, then understand, and if you don't, then forget it."
"Moreover, to be honest, it is also a sentence that Mr. Xie may be reluctant to listen to. Mr. Xie, whether you vote this time, in fact, we don't care too much, and it has no effect on us."
"It's entirely because our boss appreciates Mr. Xie that he made this decision. Otherwise, the business model that we spent eight years studying, ordinary people, we really wouldn't get a piece of the pie for him."
After speaking, Cao Xingyu waved his hand indifferently.
Appropriately show the attitude of not caring about investment, and let the other party produce a judgment that this kind of opportunity is rare.
And people have a rebellious mentality. The more you say no, the more others will want to use more force or speed up the sprint.
At least that's what Cao Xingyu thinks.
"Well, what you said also makes sense." Upon hearing this, Xie Qing began to ponder.
Eight years.
At the beginning, one or two billion was invested.
No matter how you look at it, this is not like an unreliable project. There must be a detailed profit plan in the future, but it is not convenient to show it at the moment!
And the other party’s attitude is obviously that they really don’t want to invest, unlike the pretended one, which shows that the capital behind it is not bad for money!
"As for why let me invest..."
"The high probability is that the capital behind knows me, but it is difficult to identify me, otherwise it will attract too much attention." Xie Qing silently analyzed.
"It seems that this is why this capital is looking for so many puppets to put on the table, so I don't want to be eye-catching prematurely!"
"It also indirectly shows that their business model may be really easy to copy, and this will make such an effort to conceal others."
Thinking of this, Xie Qing smiled confidently. Not only did he agree with what Cao Xingyu said, but he also believed that he had completely seen through the careful thoughts of the capital behind.
Withdrawing his thoughts, Xie Qing said to the people around him: "Needless to say, this company will definitely have to vote. You should proceed from the actual situation and set a gambling clause for me to discuss it."
Several investment elites looked at each other, and they understood Xie Qing's temper, and finally had to accept this fact.
Fortunately, there is a gambling clause, which is much better than the previous projects...Several elites thought silently.
Afterwards, several people got together and discussed in a low voice.
"How long does it take to discuss this..." Looking at the group of investment elites caught in the discussion, Cao Xingyu didn't want to waste time.
and...
He never thought about the possibility of completing the terms of the bet!
According to the business measures of the store, unless some gambling terms such as turnover and expansion speed are set, other terms such as profit will not be completed at all!
After pursing his lips, Cao Xingyu interrupted:
"Or, let me give you a suggestion?"
"Okay, you say." Xie Qinggang took a sip of tea and smiled.
After Cao Xingyu changed his attitude before, Xie Qing's mood became much better before she knew it, and she felt that the assistant Cao she saw today was more energetic than before, and she didn't know why.
"Don't discuss the terms of gambling, trouble." Cao Xingyu waved his hand and said in shocking words:
"Otherwise, after investing for one year, if Mr. Xie has any dissatisfaction, he can withdraw the shares at any time. We are willing to repurchase Mr. Xie's shares at twice the amount of Xie's total investment."
"In other words, Xie's total investment is 10 million, and after one year, we will repurchase at 20 million."
"In this way, Mr. Xie's return on investment can also reach 100%."
"If Xie always has any dissatisfaction after two years, then we will buy back the shares at three times the price."
"And so on, there is no upper limit."
"Mr. Xie, what do you think of my proposal?"
Wow!
As soon as Cao Xingyu finished speaking, there was an uproar in the audience!
Xie Qing looked at him in shock.
Jia Yuena, who was sitting next to her, was even more stunned in disbelief.
Those elites who were still discussing also turned their heads unbelievably.
If there is any dissatisfaction, you can withdraw shares at any time?
And after a full year or double the price? !
Three times in two years? !
What kind of fairy gambling clause is this?
Many people present have been in the investment circle for many years This kind of gambling clause is simply unheard of!
Under these conditions, you don't need to worry about the situation of the project itself. The rate of return for the full one-year withdrawal is already extremely attractive!
To put it simply, even if the project itself does not make any profit, as long as one year has passed, at least a 100% rate of return can be achieved!
But if the project has development prospects, it is not to withdraw the shares!
All in all, for investors, there is no risk at all!
Everyone was shocked, and the meeting room fell into a short silence again.
Cao Xingyu naturally considered these words carefully.
For him, funding is the best potion for his expansion. As long as he has money, his development speed will also be greatly increased.
To put it simply, if Xie Qing invests 10 million now, then Cao Xingyu uses the money to buy the subsidies that some shops have brought him, and the income after one year is far more than 20 million.
Under this circumstance, there is nothing wrong with doubling the other party at that time, no matter how the deal is calculated, he will not lose.
And three times in two years, four times in three years, don't look too much, in fact, the longer the time, the better for Cao Xingyu.
For Cao Xingyu, money will become a string of numbers as it develops further.
Oh, to be precise, it's a very long string of numbers.
ps: ask for monthly ticket, recommended ticket