It was just noon when the plane arrived in Hangzhou. Li Mu, Lin Qingya and Ding Zhenglin first checked into a high-end hotel in Hangzhou. After they went back to their rooms to put their luggage, they immediately came to Li Mu's room to discuss more specific negotiation strategies.

Zhao Xianliang has already introduced Li Mu almost everything about Hikvision. Overall, it is a group of awesome people who have made a hard work of gritting their teeth. They have no money and their prospects are a little unclear enough. They are just hoping to find someone to invest, but in a summary: lack of money is the main tone of Hikvision.

As the most active entrepreneur in the domestic high-tech industry, Li Mu has no need to say that his influence on the entire industry is, and it can even be said that high-tech enterprises across the country will not refuse investment from Li Mu.

However, the most critical issue is: Li Mu is not an investor who simply carries cash, but a demolition team with money and knives.

He didn't want to simply invest in Hikvision's plate. In that case, he could only exist as a shareholder of Hikvision and enjoy the dividends in Hikvision's development, but he could not control Hikvision and let it develop in the direction he wanted. The most important thing is that if Hikvision is not his own legal theory, he would not be able to integrate it newly.

The so-called new integration is to integrate Hikvision into a new plate and carry out a comprehensive merger and acquisition.

Li Mu paid for a new plate and asked Hikvision to throw its original plate and add it to its new plate, so that they could turn from their original owners to their shareholders. This is indeed not easy.

If Hikvision does not agree or the asking price is too high, then it can only use it to acquire other companies similar to Hikvision, and become the most direct competitors with Hikvision.

If all the enterprises that are being merged are compared to ordinary people who own homesteads, then enterprises that are being merged like Li Mu are demolition teams and developers.

Some ordinary people's eyes were green when they were looking forward to demolition, and they were simply eager to see each other. As soon as the demolition team arrived, they immediately negotiated terms. After the agreement was made, they took out their own houses and land to cash out, and then exchanged them for a few new houses for the developer. If they couldn't agree, they became nail households, and they were consumed until better conditions were introduced.

But some ordinary people just don’t want to be demolished and would rather die than surrender and continue to live in this hot land. For developers and demolition teams, they can only be: if you have the ability, you will demolish them, and if you have the ability, you will take a detour.

At present, as a demolition team, Li Mu came to Hangzhou to conduct the first demolition negotiation with Hikvision. On the premise of not knowing whether Hikvision accepts "demolition", the first thing to determine is to quote Hikvision's "house".

If you want Hikvision to give up its own development and use 100% of its shares to replace 20% of its future shares of "Makino Vision", you must first have enough conditions to impress them.

However, Hikvision has only been established for a year and is still in the R&D stage. Without any revenue flow and market feedback, it is difficult to make a suitable valuation.

Hikvision's biggest wealth is composed of two parts, one is all cutting-edge talents from the Institute of 52, and the other is the existing scientific research results of the Institute of 52, which are all considered soft power.

Lin Qingya's previous survey results show that Hikvision's biggest technical advantage is that they have 52 original technical accumulations in both aspects, so their R&D capabilities are very strong.

However, Hikvision also has its embarrassment: it has not entered the front-end camera market in a substantial way, which means it cannot create cameras now, and cameras are one of the most important links in the planning of Skynet system.

In other words, after acquiring Hikvision, Li Mu would either invest money to Hikvision to research front-end cameras, or simply buy a company that mainly makes front-end cameras and come in to complement Hikvision.

Therefore, Hikvision is a high-tech R&D enterprise as a whole, not a hardware manufacturer. Its main positioning is to be a solution supplier in some sub-sectors in the security monitoring field. It does not have the strength to connect all software and hardware, front and back ends, and become a one-stop company for security monitoring research and development, production, promotion and sales.

Regarding this situation, the three of them discussed it for a long time and finally reached a consensus: Judging from the current situation of Hikvision, the company's valuation cannot be higher than 50 million.

After Ding Zhenglin thoroughly understood all of Li Mu's architectural plans and the psychological price of 50 million yuan, he said to Li Mu: "Mr. Li, there is a problem. Hikvision and 52 are both state-owned enterprises. Their goal is to find development opportunities in the market, so their vision should be very long-term."

Speaking of this, Ding Zhenglin said: "In my opinion, what Hikvision lacks now is the funds that can be invested in the operation of the company, rather than the little cash after selling the company. So if we want to set up a Makino Viagra to acquire them, we have to give them a broader development space. It is difficult for them to agree to it just for money."

Li Mu nodded and said, "It is not difficult to acquire those messy traditional state-owned enterprises, but it is indeed not easy to acquire state-owned enterprises like Hikvision with long-term goals and strategic plans."

Ding Zhenglin said: "We do not have any technical reserves that are directly related to the security monitoring field, so we can invest in Makino Vision now very few effective resources. Whether it is soft or hard power, it is probably difficult to truly impress Hikvision and 52 Institute. We have to find ways to strengthen our attractiveness to them."

Li Mu smiled slightly and said, "You are right, so we have to analyze Hikvision's needs in-depth and then prescribe the right medicine."

"For example, Hikvision is the first priority to lack money, so if we give him a valuation of 50 million and want him to willingly merge into Makino Vision and only occupy 20% of Makino Vision's shares, we must first fill the future valuation of Makino Vision to 200 million. This is the premise, how to fill the valuation of these 200 million is the issue we need to consider."

Ding Zhenglin said: "There is a feasible capital operation model. We can first establish Makino Vision and place 200 million in cash on Makino Vision's account. In this way, Makino Vision's market value is 200 million in cash. If Hikvision is willing to be acquired by Makino Vision and own 20% of Makino Vision's shares after integration, then Makino Vision will have 200 million in hard assets and Hikvision's soft power of 50 million in total, which will be a valuation of 250 million in 200 million."

Lin Qingya also nodded and said, "I think the method mentioned by Mr. Ding is very feasible. Hikvision is short of money. The 200 million cash is of great significance to them. This means that once they join us, all their research fields will be injected with large amounts of funds to allow them to develop faster. If they don't join us, they can only continue to eat braised vegetables and tighten their belts to develop. Do you think they will be moved?"

Li Mu thought for a moment and said, "It is a bit too simple and crude to register a company directly and have 200 million cash. I personally feel that if we directly use 200 million cash to attract it, once Hikvision agrees, because we do not have a deep understanding of this industry, they will basically decide the right to use the money in the future. In this way, it will be difficult for us to maintain the Libra between us and them in the future, and we do not have enough ability to check and balance the Hikvision team."

Lin Qingya and Ding Zhenglin also agreed with Li Mu's concerns. They don't understand a field and have to spend 200 million yuan to do things for those who understand the industry. This is indeed too uncontrollable for investors who contribute money and has a great risk. Even venture capitalists will invest in a round of 10 or 20 million to see the results first, and then decide whether to pursue the investment.

Everyone fell into silence all of a sudden, and everyone was thinking about how to build their own plates and attract Hikvision to join them while ensuring their basic control over the entire plate in the future.

After thinking for a while, Li Mu had an idea and took the lead in breaking his silence, saying: "Isn't Hikvision's current advantage focused on codec technology and back-end storage products? Then we will acquire a simple camera equipment manufacturing company with sufficient strength, take it in as part of the 200 million market value, and then use the money to make up for the rest. In this way, if Hikvision agrees to join, we will have a camera equipment manufacturing team that cooperates with them and checks and balances each other, thereby maintaining a basic balance. Moreover, if there are more front-end equipment manufacturing links on the plate, it will also increase its attractiveness to Hikvision."

Both of them had a bright eye and thought it was a good idea.

If you don’t understand and are afraid that those who understand things will be out of control, the best way is to find someone who understands things to check and balance them with him. If this person who understands things does not have a functional conflict with the other person itself, but can complement each other, that would be even more perfect.

Li Mu calculated: "In this way, coupled with our Muye Technology's software R&D team, we have three teams in our hands! The internal balance will be more stable."

"The camera equipment manufacturing team is responsible for the front-end camera of the Skynet system, Hikvision is responsible for the mid- and back-end decoding and storage of the Skynet system, and the developers of Makino Technology are responsible for the software support of the entire Skynet system. After the three teams are integrated, Makino Vision will have the entire industrial chain from front-end camera to data processing, transmission and then to data storage. Therefore, Makino Vision's prospects are much greater than Hikvision's own struggles, and Hikvision itself should be able to see it."

Ding Zhenglin said: "Mr. Li, since this is the case, we can also bring in our promotional resources of Muye Technology and Taobao's sales channels as a supplement to the future Muye Vision. I believe it will be more attractive to Hikvision."

Li Mu nodded and said, "It's very good, with front-end, support, resources, channels, and funds. After completing these five points, we will allocate all links in the entire security monitoring industry, except Hikvision, the middle and back-end. At that time, as long as Hikvision is integrated, we will be able to directly create a mature, complete and sufficiently advanced industrial chain. I believe that it will not take long to get the Skynet monitoring system out."

Lin Qingya hurriedly said: "I have information about several camera equipment manufacturers I have sorted out before. The largest domestic manufacturers are basically in the Shenzhen Stock Exchange. If we take the production companies first, we will take the initiative in Hikvision!"

Li Mule said: "It happened suddenly and the preparations were too hasty, so it was impossible to do everything in such a short time. Since I have made an appointment with Hikvision people, I will draw a big pie for them today!"

...

ps: Sorry, I’ve been delayed for some reason. I can only update tonight and make up for it tomorrow!
Chapter completed!