Due diligence before financing is an indispensable step, aiming to allow the buyer to discover as much as possible about the shares or assets they intend to purchase.
From the buyer's perspective, due diligence is also risk management.
Once due diligence clarifies the existing risks and legal issues, both the buyer and seller can negotiate which party should bear the relevant risks and obligations, while the buyer can decide under what conditions to proceed with the acquisition.
General points of concern include the health of the management team, product or service quality, market size and demand, competitive advantages, and the company's financial status.
Rumor has it that a certain company was developing very well, and its financing was almost finalized, but the deal fell through because the boss's office chair was too expensive.
The story might be exaggerated, but the procurement of office tables, chairs, and benches can indeed indicate the integrity of a company's purchasing department.
No investment firm is foolish; no one wants their invested money to be embezzled by a bunch of parasites.
It also indirectly reflects the management capabilities of the company's executives.
...
While due diligence was ongoing, the front desk announced that Ge Mengshi had arrived.
Seeing Ge Mengshi again, perhaps due to her trip to relax, her overall mental state was much better.
"Where did you go to enjoy yourself?"
Chen Pingjiang said with a smile as he poured Ge Mengshi a glass of water.
Once in work mode, Ge Mengshi reverted to a serious expression, and her black suit skirt made her appear quite aloof.
"I went to Dali and Yulong Snow Mountain."
Ge Mengshi then continued, asking,
"I heard there's a team conducting due diligence at the company?"
Chen Pingjiang nodded.
"They've been investigating for several days now."
Ge Mengshi, quite familiar with this process, smiled.
"Congratulations, you might soon become the wealthiest person under twenty in the country."
"You're joking, the money raised has nothing to do with me."
Funds coming in generally require capital increase and share expansion; the money belongs to the company, not any individual.
Directors will also be appointed, and this money can only be used for company development, not as distributed profit.
As a legally independent entity, the company is liable for any misappropriation of funds.
Of course, what can't be done openly can be manipulated secretly.
After a brief chat, Ge Mengshi raised a question:
"Actually, if I were you, with the internet side of things so mature, it seems completely unnecessary to keep the catering business."
Chen Pingjiang chuckled,
"Some people can become the richest person just by selling bottled water; you underestimate this industry too much."
Not long after.
All mid-to-high-level managers, including store managers, from Zhizhen Catering's two brands, Xiao Chen Shaokao and Miao Cha, rushed to the main conference room.
This included Zhu Yuanlan, the person in charge of the Xiao Chen Shaokao brand, and Dai Sheng, who had just been promoted to store manager.
The conference room was packed, with nearly forty to fifty people.
Even the heads of the procurement and distribution center and Miao Cha's product research and development center hurried over.
To Ge Mengshi's surprise, she had originally thought Zhizhen Catering was just a makeshift operation, but she hadn't expected such a complete setup.
Even professional distribution and R&D centers had been established.
For a while, although Ge Mengshi was traveling, she also spent her leisure evenings catching up on relevant catering knowledge.
As a result, she gained a clear understanding of Chen Pingjiang's capabilities and his determination to succeed in the catering business.
To be honest, if Chen Pingjiang hadn't approached her, Ge Mengshi, as a former COO of a listed company, would not have agreed to anyone else's request.
Ge Mengshi genuinely wasn't impressed by the small stake offered.
The physical industry is not like internet companies; the valuation premium is very small.
Currently, if Zhizhen Catering wasn't backed by Chen Pingjiang's Renrenwang and Renren Waimai, its valuation would be at most several million.
As someone with an annual salary in the hundreds, Ge Mengshi truly wasn't interested.
The reason she accepted Chen Pingjiang's request was because she saw Zhizhen's development potential.
Zhizhen Catering, as it stood, was a blueprint, a canvas for her to freely paint upon.
As Ge Mengshi observed the people in the conference room, everyone was also observing her.
Those who received the call had originally thought it was a routine meeting but didn't expect so many people.
Seeing the beautiful woman sitting and chatting cheerfully beside the big boss, many already understood.
Chen Pingjiang cleared his throat:
"Let me introduce to everyone, this is Ms. Ge Mengshi, General Manager Ge. She graduated from a prestigious university and was formerly the COO of a listed group company, with rich management experience.
The company has officially appointed General Manager Ge as a partner of Zhizhen Catering Group, concurrently serving as the Group CEO, fully responsible for the daily management of all companies within the group. Let's give her a round of applause."
With a round of applause, the long-vacant head of Zhizhen Catering Group was finally confirmed.
Ge Mengshi offered a polite smile and nodded.
After the applause died down, she began,
"Thank you very much for President Chen's trust, for providing me with such a platform to realize my ambitions. I'm also very happy to fight alongside all of you colleagues here.
President Chen has high expectations for Zhizhen Catering, hoping it can successfully go public one day. I believe this is also the long-term goal for myself and all colleagues present. As for the ultimate goal, it is to hope that Zhizhen Catering can become a great enterprise."
Changing her tone, Ge Mengshi's smile faded:
"For the next period, I will quickly enter work mode, starting with familiarizing myself with the company's personnel, and I will also personally visit every store to listen to everyone's opinions."
"..."
Chen Pingjiang secretly nodded in satisfaction.
Although this elder sister was unreliable when drunk, she was certainly serious when it came to work.
Just a few words gave Chen Pingjiang a general understanding of Ge Mengshi's work capabilities.
After the welcome meeting, Ge Mengshi was not in a hurry to return to work.
Instead, she discussed with Chen Pingjiang the current situation of Zhizhen Catering and the original plans for it.
Chen Pingjiang spoke without reservation.
"Previously, Zhizhen Catering's role was essentially to serve as Renrenwang's cash cow; all profits were allocated to Renrenwang's development as loans. After this round of financing, Renrenwang will repay these funds and then lend a portion of money back to Zhizhen Catering. By then, you can accelerate the pace of expansion."
"Zhizhen Catering, backed by Renrenwang and Renren Waimai, naturally possesses unique advantages. All that remains is to optimize supply chain management and store management, and then rapidly expand on that foundation."
"Also, in a few days, I will give you a business plan I wrote for the 'Taiyi Suancaiyu Brand Construction Plan'."
After an hour-long discussion with Chen Pingjiang, Ge Mengshi finally gained a general understanding of Zhizhen Catering.
After Chen Pingjiang thoroughly introduced Renren Waimai and Renren Tuangou, which was planned to launch in the second half of the year, Ge Mengshi felt that the resources were simply excellent.
With money available, publicity channels, and sales channels, a closed loop had already formed.
In fact, as long as Zhizhen developed step-by-step, it would be difficult for it not to rise.
Ge Mengshi, with her keen business sense, immediately recognized the new business model of Renren Waimai and Renren Tuangou.
This business model would fundamentally change people's lifestyles and consumption habits; to say it would change the world would not be an exaggeration.
The energy that Ge Mengshi exuded once she immersed herself in work also made Chen Pingjiang not dare to underestimate her.
No wonder she could reach the position of COO of a listed group at such a young age; this isn't achievable with talent alone, but requires double the effort.
Ge Mengshi was exactly like that; Chen Pingjiang even considered giving her the nickname "Desperate San Niang."
Goodness, she appeared at the company punctually at 9 AM, didn't leave until midnight, and familiarized herself with everyone in the company in the shortest possible time.
Her entry point was excellent, with a decisive and efficient aura about her.
First, she went back to her old company and poached several mid-level managers, then contacted other network resources, completing Zhizhen Catering's organizational structure within a few days.
Next came checking stores and auditing accounts!
For a time, everyone felt precarious.
Chen Pingjiang learned through other channels that Ge Mengshi was extremely strict, adopting a zero-tolerance attitude towards food safety, material waste, overstaffing, inadequate store management, unplanned processes, and poor service attitudes.
Demotions occurred, fines were issued, and she even made an example of a few people by firing them.
Instantly, the entire Zhizhen Catering, normally lax in management, took on a completely new look.
The harshest part was that a mid-level manager at the procurement and distribution center was caught taking kickbacks.
For an ordinary company, they might just have the person return the money and then fire them.
But Ge Mengshi obtained evidence through suppliers and directly involved the Public Security Bureau's Economic Investigation Detachment.
This series of actions left Chen Pingjiang dumbfounded.
In terms of ruthlessness, even he couldn't compare to Ge Mengshi.
What was even more remarkable was that all these actions had actually only taken place over a week.
Having received the "Taiyi Suancaiyu" business plan provided by Chen Pingjiang, Ge Mengshi was very interested.
"Xiao Chen Shaokao, due to its difficulty to replicate, will have a relatively low ceiling. Taiyi Suancaiyu happens to fill a gap for us in the catering sector. Sichuan cuisine flavors are increasingly popular with consumers, and the dishes are well-structured, which I think is good. And if I'm not mistaken, there are no similar products on the market."
"As for Miao Cha, it gave me a great surprise. Sometimes I even think that Miao Cha alone, as a brand, could support a listed company."
"It's easy to replicate, expands quickly, is highly profitable, deeply loved by young consumers, and currently doesn't face much competition. We have no reason not to succeed. For this, I have also developed an expansion plan for Dongjiang City."
Chen Pingjiang waved his hand, declining the report Ge Mengshi handed him:
"I said I wouldn't interfere with your decisions; just go ahead and do it boldly. On Zhizhen's side, I'm only responsible for offering advice on the general direction and exercising oversight."
This might have been a small "test" from Ge Mengshi, or perhaps she genuinely intended for Chen Pingjiang to review it; whatever the reason, he couldn't be bothered to look.
Ge Mengshi took a deep look at this "young man," feeling a myriad of emotions while also being deeply shaken.
"Perhaps it's precisely because of this quality that he can succeed."
Trust those you employ, and don't employ those you distrust.
No clinging to power!
Chen Pingjiang knew that due to time and energy constraints, he couldn't possibly oversee the catering group.
Rather than that, it was better to trust Ge Mengshi and provide good support, avoiding multi-headed management that could diminish Ge Mengshi's authority and cause administrative chaos.
(End of Chapter)
---------------------
Support me on P@treon
[email protected]/charaz
$3 -> 15 chapters in advance
$5 -> 30 chapters in advance
$10 -> 60 chapters in advance
Check my pinned post on P@treon