America’s Road To Wealth

  Chapter 41 new target

   There is always an end to the banquet.

  The end of the song,

  At about ten o'clock in the evening, Barron Hilton, the host of the banquet, left the venue voluntarily.

  As soon as he left, he announced the end of the banquet.

  As early as 8:00 to 9:00, people left the venue one after another.

   Few people are present at a banquet or party from beginning to end.

   If there is, it is either asking for something, or simply being the host of the banquet.

  Like Abel and David Mellon, they didn't stay until ten o'clock.

   The two left the golden hall on the top floor of the Midtown Hilton Hotel just as the clock reached nine o'clock.

  After the two of them left, several Wall Street giants also left one after another.

   Downstairs, on the street.

  The driver Andy drove a black Cadillac sedan.

   This is a fifth-generation Cadillac STS.

  STS is the flagship product of Cadillac.

  It has a rough and unrestrained appearance, subverting the previous classic luxury and showing a flamboyant personality.

   It is the wildest Cadillac flagship ever.

   Don’t look at Cadillac overseas, it’s not doing well all the time.

  In the federal territory, it has a different status from Lincoln in the car industry.

  Let's put it this way, the status of Lincoln and Cadillac in the United States.

   It is equivalent to Hongqi, and it has the same status in the car industry of China.

   American OldMoney with a little sentimentality, most of them like Cadillac or Lincoln.

  David is with Abel, and he goes to his car and brings some papers.

   Then he got into the car with Abel. In the rear compartment, David handed the documents to Abel.

   "Here, here is the information you want." David said.

   "What you want, its ownership structure is very clear. The parent company LBrands holds 91% of the shares, and Wexner personally holds 9% of the shares."

   "This is a company that is close to a private company. Goldman Sachs, Merrill Lynch and MG have similar evaluations on its latest valuation, which is about $300 million."

  While listening to David's introduction, Abel nodded slightly, flipping through the information in his hand.

   "Why are you suddenly interested in a lingerie company?"

   "Don't tell me, is there any wealth secret that I can't see?"

   David Mellon said.

  Abel lazily said without raising his eyes:

   "It can indeed be regarded as a wealth secret.

  If I told you that this is a unicorn with an annualized rate of return of more than 100% for the next ten years, what would you think? "

   "At all costs, take it down! If you can't take it down, find a way to stop or destroy it!"

  David was stunned, and then wondered: "You are talking about Victoria's Secret, right? How can an underwear company achieve such a high annualized rate of return?"

   "Bingo, you're right.

  Victoria's Secret is such a company.

  I am very optimistic about its future development.

  Within ten years, it can at least give us ten times the return. said Abel with a smile.

  David was relieved, "No wonder you let me collect its information.

  I thought you were interested in the models it owns, or the models it employs. "

  Abel smiled and said, "You're right. I'm really interested."

  David rolled his eyes, and then said:

   "If you want to acquire it, it will be a little difficult.

  L Brands has a good financial situation, and Victoria's Secret has also had a good financial situation in recent years.

   Wexner wouldn't want to sell. "

   "Didn't you just say that it has a market value of $300 million?"

  Abel said: "Then I will bid 500 million U.S. dollars, with a cap of 600 million U.S. dollars.

  Double the price, do you think Wexner would want to sell it? "

   "The market value of LBrands is less than two billion. If a Victoria's Secret can sell for six hundred million, I think he will be very happy."

   "But." David Mellon said hesitantly, "This premium is too high."

   “Before you say a premium, think about what it’s going to be worth next.

   David, trust my judgment.

   It won't take that long, as soon as next year, and you'll know the investment is worth it. "

   "Okay." David Mellon shrugged, "You are the boss, you have the final say."

   For Victoria's Secret, the lingerie company.

  The reason why Abel is willing to pay so much premium for acquisitions is of course partly because of the supermodels who are about to debut in the age of the gods.

   But just like what he said to David Mellon, Victoria's Secret will really hit the sky next.

  In just a few years, the valuation has risen from hundreds of millions of dollars to billions of dollars.

   Even when it was listed, its valuation once reached 9 billion US dollars.

   At its peak, there were more than 1,000 stores in the United States and more than 2,000 stores around the world.

  The sales during the peak period even accounted for 40% of the national underwear sales.

   It can be said that in those few years, Victoria's Secret was the world's number one underwear giant.

   This is mainly because its marketing is very good, which creates a feeling of "I'm expensive and I'm very expensive".

   As a result, I went to the store to see that it was actually not expensive at all.

  An average piece of underwear costs $30-40.

  The high-end ones are a little more expensive, and the same style worn by those supermodels is only about 70-90 dollars a piece.

   It is the creation of this sense of gap, as well as a good aesthetic.

   Let Victoria's Secret, with the help of crazy marketing capabilities, become a world-renowned underwear brand in a short period of time.

   And it all started at the Victoria's Secret show at the end of this year.

   Then at the Victoria's Secret show at the end of next year, it will go straight to the top.

   Started Victoria's Secret, the glorious course of the next ten years.

  Before this year or next year, pay more to get Victoria's Secret.

   Then don’t worry about anything, just let it follow the marketing path of the previous life.

   can make it go to the glory of the previous life.

   Just the return on valuation is an investment with more than ten times the return.

  The most important thing is that, as the parent company of Victoria's Secret, L Brands is really not short of money.

   Wants Lex Wexner to sell Victoria's Secret.

   It is impossible to succeed without offering a price that is enough to make his heart beat.

  Smith Capital has nothing to make LBrands excited.

  If you want to win, the only way is to spend money directly.

   It is probably the best way to drop ten meetings with one force.

  Abel is not good at negotiating in this area.

   Fortunately, he has talents who are good at this area, so just leave it to David to do it.

  The two skipped this topic, and then talked about the banquet tonight.

   "Obviously, they are very happy." David commented on the performance of several Wall Street giants tonight.

   "I believe that in a few days, or even tomorrow, someone will come to the company."

   "Are you so optimistic about me?" Abel said with a smile.

   "Of course. If you allow me, I want to take out my own money and invest it in the company." David said seriously.

   Abel knew what he meant.

  Because next, Smith Capital will start the first private placement.

  The goal of private placement is 2 billion US dollars for a period of half a year.

  What David said was that he wanted a share of the two billion dollars in funds.

   "Yes." Abel said bluntly, "But it must be your funds. Or your family's funds. It cannot be other funds under your name. You know the rules, my friend."

   "Understood." David said: "Of course I understand the rules!"

   "That's it." Abel said with a smile.

   "That's right." Seriously, the business matters are over.

  David Mellon, would like to talk a little less serious.

  He winked and said: "That D. Ikana Lerner, I feel that you seem to be interested in her!"

   "Ikana is really good, but you have to pay attention. Her father is a difficult guy."

  (end of this chapter)