51% the "new game" of the holding master and franchisee

The relationship between the leader and franchisee is very simple, franchisee through pay to obtain the leader's brand, management model, products, and other authorization, and then independent operation, risk from the bear, basically and the capital market income is not very related. But recently joined the market, the rules of the game mutation, more and more franchisee found that if they are with the "club" (VC investment in the leader), the future may also be several times the operating income of the capital gains (after the listing of earnings). "A lot of money-making franchisee actually do not know what is called capital gains, simply think their store is now making money, suddenly the leader of the acquisition of 51% of the equity, as if the profit of half will be divided into the leader, psychological particularly unbalanced." In fact, the goal of the franchisee is not to share business profits with franchisees, but to obtain financial statements to achieve the final listing. Once listed, the chief and franchisee can obtain high capital market income. "Aestheticism Group chairman Chen said that her business has just won the first round of 15 million U.S. dollars investment in a British-funded venture, the future of the IPO can be." Why do franchisees scramble to be held? Recently a period of time, beauty chain brand-aesthetic headquarters received a lot of advice calls, are some investors call, they want to join the aesthetic degree. According to the Department of Aesthetic marketing manager, Mr. Karl of Taiwan, the telephone in March was nearly thousands. Through the investigation to know, the original investors heard that the aesthetic to buy franchisees, but also to multiples of several times to buy. Aesthetic degree this year to get 15 million of dollars in investment, began to build Shenyang, Guangzhou, Shanghai, Chengdu and Beijing five offices, and increase the support of the franchise. According to the beauty of the President of the morning, the aesthetic degree is currently in consideration of the acquisition plan, ready to buy some time after the acquisition of those who run good franchise stores. "In the beauty industry, the large-scale acquisition of franchises has only just begun." "said the morning light. Due to the entry of capital, many franchise brands have launched a large-scale acquisition action, Hundred Li, 21st century real estate, small sheep, yonghe soy milk, game College and other well-known chain organizations are in the capital of venture capital, have increased the strength of direct-chain or launched the purchase of the franchise, in a short period of time, The proportion of direct battalion increased significantly, for example, 21st century real estate in the second round of Ivy Fund 52 million dollars of investment, quickly in Beijing and Shanghai and other cities to increase 150 direct stores. In the eyes of venture capital, direct chain is more favored, after all, direct chain is easier to implement the headquarters of the management system. "Too many stores, easy to lead to management confusion, the franchise system is very unstable." "said Zhou Wei, vice president of China Investment Company. More importantly, from a financial standpoint, even if the size of a large franchise system, the franchisee's sales revenue and profit can not be reflected in the leader's financial, therefore, in the promotion of capital, under the temptation of listing, franchise chain Brand launched to buy a franchise shop or open a direct shop practice is also natural. "Some of those who have a keen sense of smell areNote that the headquarters or the leader has a listing plan, will also take the initiative to move closer to the headquarters, hoping that the leader of the IPO prior to repurchase their own shares, so as to enjoy the benefits from the capital market. Senior Marketing expert Li Zhiqi analysis. However, in different industries, due to the large differences in the price-earnings ratio after the listing, franchisees are not always willing to be acquired, such as the education and training industry as a result of the general low P/E, joining the school acquisition difficulty is relatively large, the general leader is to take cash can be acquired. [Next] Belle mode of industry Temptation May 23, 2007, the mainland's women's leading enterprises Belle International holdings in Hong Kong officially listed, financing HK $8.66 billion. On the day of the listing, the myth of HK $78.9 billion was created, one more than Gome's 36 billion Hong Kong dollar market capitalisation, and became the largest mainland retail listed company with the market value of the SEHK. Then, as a domestic women's brand why so to get the pursuit of the capital market? Take a look at the three years before the IPO of the financial data can be seen some clues: 2004 hundred Li's sales revenue and profits are 870 million yuan and 75 million yuan, and in 2006 the two data soared to 6.2 billion yuan and 970 million yuan, the profit rose 13 times times. "Such growth will certainly be favored by the capital markets, but this growth rate is more by means of capital, in the past two years, especially in 2005, the Hundred-Li through the capital operation of the acquisition of 1500 high-quality franchise stores, the number of direct stores increased significantly, so through the consolidated financial statements, Hundred Li embodies in the financial turnover and profit is a float red. "A person familiar with the operation of the hundred-Li Capital, said. In 2005, the company introduced Morgan Stanley and Ding Hui to invest two PE strategic investors, financing HK $23.66 million, accounting for about 4% of the shares. "From this data it can be inferred that venture capital gave a company value of about HK $600 million, and the market value of 78.9 billion Hong Kong dollars after the listing, Morgan Stanley and CDH investment returns of 130 times times." Then, for those who were bought before the IPO, although being held, but after the listing, the multiplier of its capital appreciation brings more profit than the lost profits. With a profit of HK $0.1475 per share and an IPO price of HK $6.20 per share in 2006, the company traded at 42 times times earnings. "Besides, Belle is using the equity acquisition, in exchange for a future listing of the premium for the franchisee 51% of the shares, in order to obtain a holding position, not before the listing and franchisee to carry out dividends, so as to ensure the interests of franchisee, at the same time at a very low cost will be 1500 of the franchisee's financial data merged into Belle's account, So as to give the capital market a beautiful result. "The man who is familiar with capital operation has said the story." In fact, the hundred Li listed, those franchisees also enjoy the listing of the huge benefits, creating a large number of millions of billionaires. Belle's mode of operation has long been not the secret of the industry, many chain companies are planning to follow this model exhibitionOpen the "acquisition" of the franchisee. [Next] acquisition of high-quality Resources to join the store Lin Sang Mi two years ago to join the aesthetic degree, in Jinan, Shandong opened a beautiful beauty salon, business has been relatively stable. The capital market is not familiar with the Lin Sang Mi recently heard that the headquarters plan to buy a franchise, temporarily had no idea, worried about the headquarters after the acquisition of their own loss of control of the beauty salon. Through the communication with headquarters, learned that the headquarters in the next two years to prepare the listing plan, but also to find familiar with the capital market friend Exchange, Lin Sang Mi attitude to a 180-degree change, the initiative to provide headquarters for the last two years of financial data, request Headquarters acquisition. As a Canadian aesthetic group in the domestic authorized institutions, aestheticism in China has opened 1600 franchise stores. "At present, we divide them into ABCD four levels at the current 1600 franchises, the first consideration is the acquisition, B and C need to be cultivated after reassessment, and then consider repurchase." "said the morning light. The master of the franchisee's acquisition is not overnight, with the analogy of the dawn is to pick the apple tree, after careful watering and fertilization, and then spend two yuan to buy them back. And in the process of aestheticism although not fully realize the holding of the franchise, but has begun to use direct management. "Through the redesign of the store, the equipment reconfiguration, the establishment of beauty training schools, training beauty professionals, and gradually achieve the standardization of the entire service and standardization." "On the specific acquisition strategy, the morning to avoid the light, but the understatement said not to exclude the use of equity acquisition approach to achieve." Therefore, the aesthetic degree is likely to refer to the Belle model to take the acquisition action. In fact, venture capital in addition to the great beauty of the channel network, more importantly, the degree of aestheticism has a relatively strong control of the terminal, franchisee once joined must be to the headquarters to buy products, and this product in the actual operation of the process is no way to replace, which for the headquarters to provide a stable product profits, Franchisee is to obtain service profits, not conflict with each other. This and many chain brands only by collecting brand fees or licensing fees are very different. "Even if like small sheep, east to shun such a chain of brands, there is no way to ensure that all franchisees purchase their own raw materials, the leader is very difficult to earn this link of money." "Li Zhiqi said. Therefore, like the beauty of such a chain brand by the favor of the capital is not surprising, "chain management regulations," the provisions of the May 1 after no record of the enterprise can not be engaged in franchise, in this year before the end of the 5.1, the first batch of the beauty of the Ministry of Commerce chain Operation for the record According to the morning, the company plans to acquire a number of High-quality franchise news, most of the franchisee said more willing to accept the acquisition, and even sparked the interest of new investors to join, so that investment also hot up.