Seeing Oracle after a long time, I felt a sense of joy first.
I engraved the amount in my mind so as not to forget.
2.93 billion.
The unit is, of course, in dollars.
Although X Cop is a Korean company, its headquarters, Typo Group, is an American company. Therefore, the payment is made in dollars.
In Korean won, it is approximately 3.22 trillion.
This amount is higher than expected.
Will Eunsung Cha really bid this amount in the primary bid? Does X Cop really hold that much value?
“Hey, senior!”
Upon hearing the shout, I snapped back to reality. The hologram disappeared as if it were a lie.
Yuri looked at me with a worried expression.
“What’s wrong? Are you okay?”
“Oh, yeah. It’s nothing. Want something else to eat?”
“You know that, right? Sometimes you space out instead of talking. Last time, you almost had an accident while driving because of that. Why do you do that?”
“Well… Sometimes something crosses my mind.”
Yuri looked puzzled at my words.
“What were you thinking this time?”
“….”
I shouldn’t say that I saw the bidding price for Eunsung Cha, right?
I said whatever came to my mind.
“I thought you looked pretty today.”
It took a while for a reaction to come. Yuri’s face turned bright red.
“Oh, why out of nowhere? Embarrassing.”
“Sorry.”
After saying it, I wondered why I said that.
A moment of awkward silence lingered.
Yuri pouted for no reason.
“Is this the first time you’ve ever told someone they’re pretty?”
“Is that so?”
I thought about it a lot, but maybe I never said it before.
Yuri giggled shyly.
“Hehe, it feels good to hear someone older say I’m pretty. Thank you.”
“Thank you.”
I should be the one thanking you more.
***
We finished a bottle of wine and left the restaurant.
Since both of us had been drinking, we called a designated driver. It was fortunate that this time we came in a sedan. Last time, when we came in an i8 and drank, there were no available seats, so we had to take a taxi back.
When self-driving cars are released, we won’t need designated drivers, right?
The world changes much faster than human perception. At any moment, you might wake up to find the people in the driver’s seat playing games or watching the news.
Shortly after, the designated driver arrived. He looked to be in his mid-fifties.
First, he dropped Yuri off in front of her house.
The car just stopped in front, and we both got out.
“I’ll walk from here.”
“Are you sure?”
I’m a bit worried you might be tipsy.
Yuri drew a V with her finger.
“Yes, it’s just safer inside.”
“Be careful going in.”
“When is the bid opening?”
“Wasn’t it at 3 the day after tomorrow?”
“I’ll root for you.”
I chuckled.
“How’s your father’s company doing?”
“Oh, right. Still, I hope your senior does well. Fighting!”
“Thanks.”
Encouragement gives strength.
“Next time, I’ll treat you. Don’t change your number. If you do, make sure to tell me.”
“Got it.”
“Promise.”
Yuri extended her pinky, and I hooked my finger, sealing the promise.
***
I called a taxi driver on my way back.
“Where are you right now?”
[At the office.]
“What are you doing there?”
[Playing games diligently.]
If someone saw this, they would think I was doing overtime.
“I’ll be there soon. Wait for me.”
I said to the driver.
“Do you know the Twin Towers building on Tehran Street?”
“Yes. I know it.”
“Please take me to the OTK Company building there.”
“Understood.”
Leaning back, I took off my glasses. It feels strange to have something on my face when I usually don’t wear glasses.
While on the way, I received a text from Yuri. It said she had safely arrived home. I replied wishing her a good night.
It must be surprising for the driver to see me in my twenties driving an S-Class car and heading to the OTK building at this hour. He glanced at me discreetly.
Then, he asked cautiously.
“Excuse me… Are you Kang Jinhoo, the CEO?”
Without hesitating to lie, I nodded.
“Yes, that’s me.”
It feels strange when someone unfamiliar recognizes me. I’m not even a celebrity.
The driver was pleasantly surprised.
“This is amazing. I watched your press conference. To think such a young person is building such a tremendous company.”
I responded casually.
“When did you start working as a chauffeur?”
“The business has been running for about 2 years. My wife and I run a convenience store together, but business is not going well.”
He began divulging information without being asked. He had previously worked at a small company but took early retirement. He tried starting a business with his retirement payout but failed. He pooled together the remaining money, even taking out a loan, to open a convenience store.
He had been told by the headquarters that he could earn 5 million won per month, but things didn’t go as planned. Initially, business seemed to pick up for a few months, but when other convenience stores opened nearby, his sales quickly declined. On top of that, the franchise fees and rent increased significantly every year.
Currently, they have only one part-time employee, and despite both spouses taking turns operating the store, the monthly net profit is only around 3 million won. It would be better for them to work as part-time employees elsewhere earning this money than to continue running the store.
However, they can’t afford to close the business as they would have to pay a penalty to the headquarters if they shut down before the contract period ends.
So, in the evenings while his wife tends to the counter, he has started working as a substitute driver for extra income, earning about 800,000 won.
“It must be tough for you.”
The substitute driver laughed in response to my comment.
“It’s nothing. Everyone lives like this.”
It doesn’t sound like someone else’s story.
Just a few years ago, our situation at home wasn’t much better. My mother never hesitated to work to earn money.
Although exports are increasing and economic indicators are showing signs of recovery, ordinary people still don’t feel the effects. Especially for self-employed individuals, the economic situation is severe.
The problem lies in oversupply. With one meat restaurant opening next to another and one convenience store after another, they can’t survive together.
The main reason is that businesses are not hiring employees.
As finding employment is difficult, people turn to self-employment, resulting in rising rents due to increasing competition, perpetuating a vicious cycle.
As I listened to his story, we had arrived at the parking lot.
“Please drop me off here.”
The fare had already been paid through the app.
I had 300,000 won in cash in my wallet. I took out all the money and gave it to him as a tip.
“Thanks to you, I arrived safely. Stay strong.”
The substitute driver didn’t refuse the tip.
“Thank you, boss.”
***
“I went up to the 38th floor.
During that time, Taekgyu hadn’t even taken a step out and was already eating pizza that he had ordered.
In the CEO’s office, a bum in workout clothes was playing games, so wouldn’t the delivery guy have been bewildered?
“How was your trip?”
I said to him.
“I found out the bid price for Eunsung Cha.”
Taekgyu stopped his surprised gameplay.
“How?”
The bid price is a strictly confidential matter.
In fear of any leaks, they sometimes decide and write it down just before the bid. But I found out now.
“I had a vision.”
Taekgyu blinked his eyes.
“It’s been a long time.”
“That’s true.”
“How much?”
“2.93 billion dollars.”
“Are they acquiring it for that amount?”
“I don’t know.”
What Oracle showed was just the bid price for Eunsung Cha. It didn’t reveal whether they won the bid.
Moreover, I’m not sure if this is a reasonable price.
“Isn’t that expensive?”
“It might be?”
Typo Group stated that they want more than 3 trillion, but that means they themselves consider 3 trillion as the maximum.
Most companies would also consider 3 trillion as the limit.
I looked at the financial statements of X Corporation on the desk. Equity is 413 billion, sales were 894 billion last year, and operating profit was 189 billion.
“If it’s 3.2 trillion, the PER is 17.”
PER stands for Price-to-Earnings Ratio, right?”
“Exactly.”
In simple terms, it means that in order to earn 3.2 trillion in profits, one would have to maintain the same operating income for 17 years.
Since PER varies greatly by industry, it’s difficult to compare uniformly. For example, in sectors like biotech or pharmaceuticals, PER ratios exceeding 200 are not uncommon due to high future growth potential, even if they’re not currently profitable.
Although we examined three years of revenue and operating income, we didn’t see any significant growth trends.
Is it really worth 3.2 trillion?
“What should we do?”
“If the excessive expenses were due to a misunderstanding, then we shouldn’t worry about it. If this is a fair price, then we should go for it.”
Ultimately, determining the fair value is crucial.
“First, let’s talk to Hyunjoo. Where is she?”
Taek-gyu pointed to the window.
“Maybe there?”
Even at this late hour, lights were brightly lit on the top floor of the adjacent building.
Hyunjoo was not in the executive office but rather on a lower floor with the due diligence team.
***
Hyunjoo was not the only one working until this time. In the conference room, over 20 due diligence team members, including Ellie and Henry, were buried under heaps of documents, working tirelessly.
Half of them were staff sent from the Asian office.
The process of selling a company can take a few months at the shortest and over a year at the longest.
However, in order to cover up the accounting irregularities, Typo Group needed cash by the end of the year. Hence, the plan was to conclude the sale negotiations before Christmas no matter what.
The sale process was moving at lightning speed. They were only given a mere ten days for the due diligence.
There was barely enough time to complete a thorough investigation but there was no choice. If they didn’t want that, they could simply choose not to bid. However, the offering was too enticing to pass up.
As a result, the due diligence team was working tirelessly. This was likely the case for other firms, not just Golden Gate. Due diligence involves experts in various fields like lawyers, accountants, examining and analyzing thoroughly on accounting, legal matters, business, and taxation.
One minor change in numbers can alter everything, so one must pay close attention. In the media, it may seem brief when someone acquires something at a certain price, but behind it lies tremendous efforts.
Ellie, who found me outside, emerged from the conference room.
“You were working at this hour.”
Ellie nodded.
“We have the pre-bid the day after tomorrow. I was reviewing legal issues with the legal team lawyers.”
“No major issues?”
“Yes. Both OTK Company and Golden Gate are clear of issues related to antitrust and monopolies.”
Having money doesn’t automatically mean you can buy a company.
In Korea, industrial capital cannot own financial capital legally, and mergers where a specific company dominates the market are not approved.
Recently, the failure of the SSK Telecom and GJ Morning merger was due to antitrust rules.
“We need to further review the specifics….”
As Ellie spoke, she suddenly approached me, almost reaching me.
“Why are you acting like this?”
Surprised, I asked Ellie, who took a deep breath.
“I smell wine. Who did you drink with?”
“…”
She can tell right away. Should I have freshened up a bit before coming here?
“I, I met a school friend after a long time.”
“A school friend? Who?”
“Well, um…”
Somehow, it doesn’t seem right to say I drank with Yuri.
Ellie spoke as if throwing a tantrum.
“Oh, how could you? I work like this, and Jinho drinks alone. I like wine too.”
“I’ll buy it next time.”
Ellie’s face brightened at my words.
“Really? It’s a promise.”
“Of course.”
I feel like I’m making a lot of promises today for some reason.
Hyunjoo and Henry followed behind.
“You here?”
“We have something to discuss briefly.”
We all moved to the office of the CEO together.
As expected, the secretary who couldn’t leave work brought coffee.
“What price do you think for the pre-bid?”
You shouldn’t casually write down the price for the pre-bid. By regulations, you can’t put a lower price in the actual bid than the pre-bid.
“$2.5 billion. Anything below that will probably be eliminated in the pre-bid.”
There are about 15 participating companies.
The pre-bid serves the purpose of filtering out companies that write unreasonably low prices among them. After the pre-bid, the main bid starting a week later is the real game.
“Do you think X-Cop is worth over $3 billion?”
Ellie was surprised.
“$3 billion? Isn’t that too much?”
Hyunjoo lit a cigarette, puffing in silence for a while, lost in thought.
She was probably going over the due diligence data she had analyzed over the past few days.
“In our country, the public safety is relatively stable. Therefore, the demand for security and protection is not as high compared to other advanced countries. However, the number of wealthy individuals is increasing, and corporate security is becoming more important. As time goes on, there is a high possibility that the demand from individuals and businesses will increase. Considering this point, even if we have to pay $3 billion now, it shouldn’t be a big problem.”
“I see.”
Indeed, Eunsung Cha doesn’t write down that amount without any consideration.
If we consider the synergy that can be obtained by merging with a subsidiary company, they might be willing to acquire it for more than that amount.
However, I have no intention of just watching quietly.
“I will determine the bid price.”
