v3 Chapter 758： Initiate an acquisition

After determining the target, Xia Yu immediately extracted a part from the company's elite, formed a complete acquisition team, and began to collect detailed information about the target.

Many of these elites recruited by targeted hunting have worked in capital management companies or venture capital companies in San Francisco or Silicon Valley. They are well informed about the venture capital field in recent years.

In just five days, Genentech’s detailed information was collected and presented to Xia Yu’s desk.

Genentech is just abbreviation, the company's full name is American Genetic Engineering Technology Corporation.

The company was founded on April 7, 1976 and is currently based in San Francisco.

In later generations, Genentech can be regarded as the oldest biotechnology company in the United States, second only to Amgen in terms of scale and strength.

It's just that in later generations, Genentech was acquired by the Swiss Roche Pharmaceuticals Group, which in 1990 bought a 60% stake in Genentech for US$2.1 billion.

In 2009, the Swiss Roche Pharmaceuticals Group once again invested about 46.8 billion US dollars to acquire the remaining 40% of the equity.

In other words, by 2009, Genentech was valued at more than $110 billion.

Genentech will undoubtedly be extremely brilliant in the future, but now, it is only a young company established for more than three years and nearly four years and has not been listed.

Genentech was able to establish and develop smoothly even though it has been losing money. The venture capital company has contributed.

At the beginning, it was a 27-year-old Robert Swanson, a partner of a venture capital firm named Coller Perkins, and a biochemist at the University of California, founder of the field of DNA recombination, 1976 Professor Herb Boyle, a Nobel Prize winner, established Genentech.

At that time, Robert Swanson obtained one hundred thousand dollars in funding from the company, and Professor Herb Boyle put out two or six thousand dollars in savings. In return, Coller Perkins received 100% Twenty-five equity.

Then, in January 1977, when the funds ran out, a venture capital company named York Capital Corporation appeared, invested 850,000 US dollars, and took a 25% stake in Genentech. Coller Pa Kings followed the investment, and the equity savings remained at 25%.

Just nine months after its establishment, Genentech’s valuation has soared to 3.37 million U.S. dollars from 400,000 US dollars at the beginning.

But at this time Genentech's products are still being tested.

In August 1977, Genentech synthesized a brain hormone-somatostatin. This major breakthrough made Genentech's reputation and attracted more venture capital attention.

Until May 1978, Genentech accepted the third venture capital investment with an investment of 950,000 U.S. dollars, and Conston Capital acquired 8.6% of the shares, all of which were from Hehe Brought it out under the name of Professor Boyle.

Because the venture capital industry has only been around for 20 years, the market is not big, and many aspects are not perfect. Venture capital companies have stronger initiative in startups than later generations. Therefore, the investment agreements signed by the other two venture capital companies are similar to those of later generations. Another difference is that the two venture capital companies continued to maintain their equity ratio with the investment. At that time, Genentech’s valuation soared to 11 million US dollars.

In September last year, Genentech was reorganized and planned to go public, and it was already going through the listing approval process.

It’s just that the goal of listing is NASDAQ, because Genentech, a company with low assets, negative profits, and high valuations, can also be listed on NASDAQ in the United States, with greater influence and scale. In the exchange, Genentech’s current conditions simply cannot enter.

According to data, Genentech now has four shareholders, the shareholding ratio of which is Professor Herb Boyle, who holds 41.4% of the shares, and Coller Perkins holds 100% of the shares. Twenty-five, York Capital Company holds 25% of the shares, and Conston Capital Company holds 8.6%.

According to last year’s 1979 annual financial report, Genentech’s total revenue was only 6 million US dollars. Because of the successful cloning of growth hormone, many research results are shifting from the research and development stage to the approval stage and are ready to be put into production. Therefore, the net profit is negative. Assets are around 2.5 million US dollars.

But this does not prevent the capital market from having high expectations for Genentech!

So don’t even think about it now, Genentech’s valuation will be very high!

Xia Yu doesn't care whether the valuation is high or not, because no matter how high it is, it can't go anywhere.

To him, who holds more than 20 billion U.S. dollars in cash, it's completely trivial!

In addition to the information about Genentech, the survey results also include information about its three venture capital shareholders.

Among them, Coller Perkins has the weakest strength. Founded in 1972, the company manages four funds with less than 50 million US dollars in capital.

The investment vision of Coller Perkins is not so good, so far the best investment return prospect is Genentech.

But now Genentech is on the way to go public, if you want to harvest the fruits, you have to wait at least half a year.

If Xia Yu's Polaris Capital can come up with money that exceeds their psychological expectations, I believe that Coller Perkins will not waste more than half a year waiting for an unknown.

After reading the information, Xia Yu called Peter Lynch and convened the acquisition team to study the specific acquisition plan.

Xia Yu swept across everyone’s faces and set the tone first: “My goal is to acquire the shares of Coller Perkins, York Capital, and Conston Capital, and to suspend Genentech. Listing process."

"The second step is to acquire as much equity as possible from Professor Herb Boyle on the basis of completely retaining Professor Boyle!"

At this moment, Genentech’s most valuable company is Professor Herb Boyle, who won the Nobel Prize, followed by his scientific research team and the patents for drugs that have been developed. As for other laboratories, production lines, etc. , It is not important at all, you can buy better ones if you have money!

In any company, the most valuable are people.

This is even more obvious in companies with a high proportion of scientific research, and Genentech is still in its early stages of growth, and the value of people is almost concentrated in Professor Herb Boyle.

"Chairman, in accordance with normal procedures, Genentech will be listed on the Nasdaq in September or October. Now the market generally value Genentech at between US$100 million and US$150 million. We want to acquire the equity in the hands of three venture capital companies. Under the temptation to go public, we have to invest at least US$100 million, or even US$150 million."

A middle-aged subordinate of the acquisition team stood up and said.

Xia Yu immediately replied: "Money is not a problem. Now the company's initial capital is 100 million U.S. dollars. I can apply for more funds. As long as there are suitable projects, one billion U.S. dollars can be injected."

"I want to state here that the consortium behind the company has enough strength In the future investment and acquisitions, funding issues are not in the scope of consideration!"

As soon as this remark came out, everyone present was refreshed and realized that the company they joined was not as simple as it seemed.

But isn't this better?

In an instant, everyone's sense of belonging to the company greatly increased.

...

"The difficulty now lies in how to convince the three venture capital companies to give up the idea of ​​going public and sell their equity to us in advance!"

After everyone discussed, Peter Lynch concluded his speech.

"Chairman, now Genentech is already in the process of going public, the sooner the acquisition, the better, so I suggest that it be divided into three acquisition groups and proceed at the same time."

After speaking, everyone turned their attention to Xia Yu.

This was in line with Xia Yu's heart. He nodded and said, "Well, there are three acquisition teams. I will be in charge of one and you will be in charge of one. Who is willing to take the initiative to stand up for the remaining one?

"I!"

"Chairman, I am willing!"

"Chairman, I can do it!"

Several people rushed to say.

The corner of Xia Yu's mouth raised slightly. After asking a few people to explain their ideas, they ordered the one with the best idea to be the acquisition team leader. The others were assigned to three teams, and then the missing manpower reported to Peter Lynch. , The rest of the deployment company comes in.

After that, several meetings were held, and the complete acquisition plan and independent action plan were made.

On March 10th, Xia Yu called everyone to gather in the company's conference room, and after expressing some inspiring ideas, he immediately announced his action.

The three acquisition teams were dispatched at the same time and set off for the three companies.

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