Investor That Can See The Future

Chapter 96

Before changing the stake in OTK Company, Taek-gyu and I each took 13 billion and 1.3 billion won, respectively, and after that, we worked as K Company employees and lived with a monthly salary of 10 million won.

Anyway, there was no need to spend a lot of money because all expenses for work were written on a corporate card. Porsche was also selected as a corporate lease.

I’ve earned a lot of money in the meantime, so it’s time to pay dividends.

This year, OTK Company has grown by leaps and bounds.

Even so, the OTK Company and K Company earned about $35 billion in Brexit, plus an additional $2.8 billion in the US presidential election. Article 38

Since we have to continue investing in the future, the more internal reserves, the better.

Currently, after merging with Chrysler, Karos is expanding factories and cleaning up production lines. If you think that you will focus on developing new cars, improving quality, and experimenting with autonomous driving rather than selling for the time being, it is impossible to know when additional investment will be made rather than earning money for a while.

Still, the dividend payout is sufficient.

“First, we will pay out 50 billion won this year.”

Dividends are subject to dividend income tax of 15.4 percent, and financial income exceeding 20 million won is taxed by adding it to global income.

As global income tax is levied on a one-year basis, it is wiser to divide the dividends over several years rather than paying dividends in one year, but since wage and salary income has already exceeded 100 million won, most of the dividends are in the highest tax rate range anyway. included in

OTK Company owns 80 percent, Taek-gyu 17 percent, and Hyun-joo noona 3 percent.

If you pay 50 billion won, I will receive 40 billion won, Taek-gyu will receive 8.5 billion won, and Hyunjoo sister will receive 1.5 billion won. If you deduct the tax, it will be cut in half.

“Why are the taxes so high?”

“Once you earn money, of course you pay taxes. Let’s do it with a happy heart for the country and the people.”

If it’s used properly, what’s the point of paying taxes?

Taek-gyu said with a puzzled expression.

“Is that guy running a company in a tax haven and evading corporate taxes?”

“that’s… … .”

I also said with a no-nonsense look.

“You built it, you idiot.”

Although I am the major shareholder now, it was none other than Oh Taek-gyu who founded the company. So the company name is also OTK Company.

In the end, it’s a very good thing.

If I had set up a corporation in Korea, I would have paid several trillions of corporate tax alone. It is not for nothing that global companies and ship owners are setting up corporations in tax havens.

It was decided to separately pay 5 billion won as a bonus to the CEO of K Company.

Even after hearing the amount, Sangyeop’s expression was not very impressed.

“It’s going to be a lot of tax.”

The stakes they already own alone amount to 100 billion won. Moreover, it is expected to increase by 2% every year. The share value will continue to rise.

“Sometimes I wonder if I can earn like this.”

“It is thanks to the hard work of the senior.”

“Thanks for following your advice. Even now, if Brexit comes out in my dreams, I wake up right away.”

“Are the results the other way around?”

Senior Sangyeop said with a smirk.

“No, the result was the same, but I didn’t follow you and sold everything before then.”

At that, we burst into laughter.

I brought up the year-end bonus at the meeting of all the employees. In addition to the performance pay that had already been paid, they decided to pay an additional double of their annual salary.

Korean financial companies are less common, but it is no joke to see foreign financial companies having a money party at the end of the year.

Even during the financial crisis, US IBs were outraged after they paid millions of dollars in performance bonuses with the public funds they received emergency blood transfusions (this includes Golden Gate).

We’ve earned that much this year, so we can have this much money feast.

The employees cheered and applauded the unexpected bonus.

clap clap!

“Wow!”

“Thank you!”

“I’ll do my best!”

“Jinhoo… … No, the representative is the best!”

Alright Seeing senior Ki-hong about to die makes me happy.

What would have happened if you hadn’t taken it from K Company?

* * *

We met Hyunjoo’s sister and Ellie at the Golden Gate branch manager’s office.

Since I work in the building next door, I usually see each other about once a day, but this time it’s only been a few days.

They both looked tired. I think I should lie down in bed and sleep instead of drinking coffee.

“When I looked at the lobby, I could see the staff I had never seen before. Did you pick a new one?”

said Ellie.

“These are the employees who came from the Asian branch for work.”

“What’s going on?”

Hyun-joo’s older sister answered briefly.

“M&A.”

Showing interest, Hyunjoo noona gave a brief explanation.

“Private equity funds under Golden Gate will form a consortium with a domestic company to participate in the acquisition. Originally, the Korean branch should take care of it, but as you know, the system is not yet established, so a due diligence team came in from the Asian branch.”

Ellie added.

“It’s a team I used to work with.”

This is Hyun-joo’s sister’s specialty. The task I was in charge of at the Asian branch was M&A for Korean companies.

“What kind of sale is it?”

“X-Cop.”

I asked surprised.

“It’s a company that has a contract with us.”

“right.”

X-cop is a security company currently in charge of security and management of Golden Gate Building and OTK Building. The same goes for my mother and our bodyguards.

“This time, the American security company Typo Group put Xcop on sale in the Korean market.”

Typo Group bought Xcop for 500 billion won in the early 2000s. Since then, markets such as security services, building management, and personal security have grown, and Xcop has also grown significantly. As of last year, sales reached 894 billion won and operating profit reached 189 billion won.

“Currently, the largest security company in Korea is DS, a subsidiary of the Seosung Group. And the second company is Xcop. Sales and operating profit are steadily increasing every year, accounting for about 10% of Typo Group’s total sales.”

“Then why are you selling it?”

It’s not a loss, it’s a surplus. If you manage it as well as it is now, you will get cash every year, so do you really need to sell it?

“I don’t know if you’ve read the article, but a while ago, the Taipo Group headquarters went into a chaos due to accounting fraud. I was in urgent need of cash right away, so I started disposing of overseas assets.”

“Ah! I think I saw it.”

In the past, it was expressed that makeup was powder-painted. Powder paint makes your face look pretty.

The same goes for companies. Even an insolvent company full of losses can be transformed into a sound company with high sales and operating profit if it is divided into accounting books.

As such, accounting fraud refers to the act of distributing accounting books.

It is, of course, illegal and a crime.

It may be overlooked only in Korea, which is very tolerant of financial crimes, but in the case of the United States, it is recognized as a felony punishable by life imprisonment depending on the amount of money.

In fact, in the case of ENRON, which went bankrupt due to accounting fraud, the CEO was sentenced to 24 years in prison in a US court.

“How much is the sale price?”

“The minimum is 2 trillion, and the most is 3 trillion or more.”

I was quite surprised.

“It’s amazing.”

This is more than a subsidiary of any large corporation.

Hyunjoo’s older sister nodded her head as if in sympathy.

“In the Korean market, Daeya came out after a while. There haven’t been any for sale like this in recent years, so it’s worth keeping an eye on here and there.”

“Can Golden Gate take over?”

It was after 2000 that domestic financial capital began to engage in M&As in earnest. Until then, global IBs and private equity funds had swallowed up domestic companies based on their strong capital.

Golden Gate also has a history of concluding numerous M&As in the Korean market under the leadership of Chase Southwell.

“A few large companies and leading private equity funds at home and abroad are jumping in, and they are already foretelling a war of stars. It probably won’t be easy.”

“Who is the most likely candidate?”

The answer was surprising.

“Eunsung Tea Group.”

Taek-gyu asked.

“Why are they interfering here?”

“Currently, Eunsung Cha Group has almost entrusted security and security to DS. The second largest group in the business world is dependent on the affiliates of the number one business group. Therefore, Chairman Han Min-koo is planning to take this opportunity to take over Xcop and incorporate it into an affiliate.”

Ellie added an explanation.

“Eunsung Motor has been thinking about establishing or acquiring a security company for a long time. Just in time, a suitable item has appeared on the market, so I am thinking of getting it.”

In general, large corporations and private equity funds have different acquisition goals.

Conglomerates usually aim to grow by incorporating them into affiliates, whereas private equity funds aim to acquire them at a reasonable price and then re-sell them at the highest possible value.

Therefore, there is room for large companies to put a premium on the actual value depending on how much they need it.

Taegyu said.

“Isn’t it okay to ask for a lot of money?”

It’s not wrong.

The larger the amount, the higher the probability of winning the bid. However, it is dangerous to spend a high amount recklessly.

“The winner’s curse is the problem.”

A representative example is the acquisition of Daehoo E&C by the Kumoh Group.

At the time of the acquisition of Daehoo E&C, Kumoh Group succeeded in acquiring it at a 90 percent premium to the market price. However, the unreasonable acquisition price became a problem later, and in the end, the entire group fell into a workout because they could not afford the amount to be paid to financial investors.

To avoid such a situation, the value of a company must be measured objectively. What is needed in the process is due diligence on sales, net profit, and operating status.

I thought for a moment.

Of course, security and security are the things that are most concerned about after the identity is revealed.

Even compared to developed countries, Korea has very good security. However, violent crimes happen all the time, and in some cases celebrities and their families are kidnapped or killed.

From a probabilistic point of view, it is very low, but security is needed to prepare for just one case.

In fact, if it is a simple security guard, it is sufficient to entrust it as it is now. But we also have to be concerned about the security of buildings and businesses.(Read more @ wuxiax.com)

If Eunsung Motor Group acquires Xcop right now, it will have to be replaced with another company. Can’t we entrust our security and security to our affiliates?

“Why don’t OTK Company participate in the acquisition?”

Ellie asked, surprised by my words.

“Yes?”

“Thinking about it, I think we need a security company.”

We have many other companies besides OTK Company and K Company, so we have our own demand.

I’m not very reluctant to entrust the important issues of security and security to another company.

Hyunjoo noona put a cigarette in her mouth.

“Is it out of necessity, or is it personal?”

That’s a sharp question.

Is it because they really need a security company, or is it because Eunsung is a coveted property?

Without thinking for a long time, the answer came right away.

“Both.”

“It’s not a good idea to put personal feelings into business.”

I smiled.

“You know. I am doing business because of my personal feelings.”

If it hadn’t been for personal feelings in the first place, when I earned 685 billion won, I would have quit investing and lived happily ever after, spending that money profusely.

If it were, I wouldn’t have been able to come this far.

“Are you sure?”

Considering the concept of buying a company with money, it is similar to investing in a startup.

But there is one big difference.

The startups we invested in were start-ups and had no competitors.

On the other hand, X-Cop is already a successful company, and large corporations and world-famous private equity funds that you can recognize just by name are drooling.

Will you be able to overtake them and take over?

Yeji didn’t come to mind right away, but somehow I had a feeling that it was going to work out.

I nodded.

“I am confident.”

Taehyung quickly agreed.

“I think it would be fun.”

Hyunjoo noona smiled as she put out her cigarette.

“Then try it. It will be a great experience.”