"What do you think of the offer from the British?"

    In the conference room of AMC cinema holding company in New York, the controlling shareholders gather around the meeting table. The management of AMC cinema company, which is far away from the headquarters in Liwood, Kansas, can only listen to the decisions of these capital players through remote video to determine the future of their theater company.

    "I don''t see why I don''t agree as long as the price is right."

    "My opinion is the same, IPO is far away, I don''t want to waste any more time, as long as the price is right..."

    "Recently, I heard that several cinema companies in the United States and Europe are waiting to be sold. The other Party chose AMC for the same reason that we chose AMC at the beginning. The largest scale of AMC is not a listed company, which is conducive to M & A operation. AMC cinema line is located in the core area of large and medium-sized cities. At the beginning, our five companies successively acquired each other, but they finally came together and owned equal shares.

    Even created a small miracle in the history of LBO. Not just to sell it. However, no one has been able to accept the IPO, but the IPO in the stock exchange market always lacks a little bit of luck.

    Now that someone is willing to take over, why hesitate? Isn''t that exactly what we want? "

    Listening to what these controlling shareholders have said, the management on the other side of the video window, far away from the headquarters in Liwood, Kansas, looks gloomy and ugly. However, they can only accept the decision of these greedy and merciless financial capitalists. Who makes them the real controller.

    This is what Arthur needs to face next: Apollo investment fund, Mg chase investment fund, Bain Capital, Carlyle, spectrum investment fund.

    And these five private equity fund companies jointly hold AMC, and the shares are equal. Five top private equity funds, after leveraged acquisition of AMC, roared to the New York Stock Exchange. However, it seems that there is always a lack of luck. With the coming of the fund''s exit period, they can only bid farewell to AMC''s IPO feast.

    At the right moment, Arthur Boleyn appeared.

    Of course, the top players of LBO are naturally unwilling to quit. They have an insatiable appetite. In their opinion, Arthur Boleyn seems to be a British prey.

    In fact, the five funds have recovered their investment, which is basically "zero cost" shareholding. However, they have all tried to make AMC listed for cash.

    Sending AMC to the New York Stock Exchange for IPO is certainly the best exit option. It is the dream and Holy Grail of private equity fund companies to raise real permanent capital from the open market. First, it can get rich returns; second, it can avoid tedious fund-raising activities; third, it can expand the scope of investors.

    It''s just that, as they said, maybe it''s really bad luck, and has never been able to successfully IPO. For Arthur Boleyn, who knocks at the door at this time, he will not let go of his mouth easily. Instead, he will open his mouth with a lion.

    "How about a billion dollars?"

    "Maybe we should ask for more, but we need to negotiate anyway..."

    "Hehe, what if you scare the other party away? Where else can we find such buyers? "

    Listening to the discussion of these greedy and shameless vampires, the management of the cinema is really constantly bleeding in their hearts, and they are also constantly cursing at the bottom of their heart. To know that their so-called $1 billion is only the price of equity acquisition. In addition, AMC has $1.5 billion in debt.

    "Ha ha, every negotiation is a war, but the situation is good and bad. We are not in a hurry. Let''s talk to him. We should know that in addition to AMC''s beautiful business performance and waiting for the good news of listing, we also have the magic weapon of continuous profit, dividend capital restructuring

    "Ha ha ha..."

    "Ha ha..."

    In the conference room, the directors of the five foundations all laughed heartily. They didn''t care at all. There were several people on the other side of the video who had lowered their heads and looked more and more ugly. They were secretly gnashing their teeth. Of course, they, the capital tycoons, also knew that the management of the cinema company hated them very much, but It''s a pity that they are the controlling shareholders and the owners of AMC. They can play as they want. A group of employees will be obedient, and if they don''t, they will get out and change into obedient ones.

    The reason why the directors of the five foundations are very happy when they hear about the dividend recapitalization, and they hate and have no choice but to hate AMC''s emotional management. The so-called dividend recapitalization means that the acquirer does not have to sell assets completely. As long as the company basically pays off its debts, it can borrow again with cash, and the borrowed funds can be used to pay dividends.

    To put it simply, for example, a property in the second ring road of Beijing has been increasing in value, and the owners can repeatedly apply for mortgage loans to realize capital gains.

    As a result, the acquired AMC company has been trying its best to promote the growth of cash flow. With such repeated actions, the five major foundations soon recovered the investment cost, but the debt of AMC cinema company was getting heavier and heavier.

    In this way, it is compared to a goose laying a golden egg laying a huge goose, but the goose liver is everywhere. This is how private equity fund shareholders arbitrage AMC.Arthur looked at the detailed information about the five holding funds in his hand, and his brow was a little tighter. He also knew that he was facing the world''s top counterparties this time, and had already done a good job in the acquisition negotiations. It would be very slow and difficult for him to cut through the mess quickly. At the same time, he also needed to maintain enough caution and fear of risks.

    In fact, this time he has to deal with two symbols of America, Wall Street and Hollywood. If you want to become the owner of AMC and become its new owner, there may be a long way to go!

    In fact, everyone knows that in a large-scale leveraged buyout war, speed is everything.

    If competitors appear, long-term competition will raise the price of the acquired company, which means that the buyer needs to borrow more funds to purchase the company, and the debt is heavier. In the end, either both sides will lose, or the snipe and clam will compete to gain profits. If there is open bidding, the acquisition war will evolve into Rou war, and the buyer will suffer the most.

    To tell you the truth, Arthur can negotiate with the other party as long as the price is not too much, and quickly complete the acquisition. Anyway, the capital he acquired was also borrowed from the Bank of Barclays, and the bank was willing to give him a loan.

    Why do you like to borrow money and use leverage to buy companies?

    This is because, according to the U.S. tax law, only interest expenses can be deducted from the enterprise''s pre tax profits, while dividends cannot be deducted before tax. Undoubtedly, the income tax law of the United States ignites the spark of LBO, and the reason why LBO is on fire is high-yield bonds. Michael Milken, once the king of high-yield bonds on Wall Street, raised huge amounts of money in leveraged buyouts. These bond funds provide great convenience for LBO, such as high-quality fuel, turning Volkswagen''s Beetle into a fast-moving Ferrari.

    You always have to pay back the borrowed money. What do you want to pay back? How to return it?

    The first is to extend the loan term, the second is to issue new bonds to repay old debts, and the third is IPO...

    So for Arthur, money is very abundant, but he does not want to let Wall Street greedy vampires take too much advantage of him, whose money is not windblown.

    Negotiation is a war. Whoever looses his mouth first will lose!

    It should not only be fast, but also tight inside and loose outside. Moreover, confidentiality is the key. There is a famous saying on Wall Street that if the merger and acquisition fails and the news is published, you will have a lot of trouble. Once the company''s acquisition information is leaked, many people will participate in the bidding, and even their brothers.

    Therefore, once the negotiation begins, the confidentiality agreement must be signed first!

    "Dong Dong --"

    "come in!"

    Arthur put down his papers, looked at the men who had pushed the door in and asked, "is there any result?"

    "Yes, boss, they accepted our offer for a billion dollars and asked us to take on all of the 1.5 billion debts

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