God of Corporate Hunting - Chapter 180



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◈ Episode 180 Silicon Valley Capital (1)

“Hmm, so you’re buying Silicon Valley Capital?”

“Yes, the track record here is pretty good. Now that it’s up for sale due to problems, there’s no better opportunity to enter the American financial world.”

Yoon Se-bin showed his enthusiasm.

Nam Woon Myung, who was reading her greed, asked again.

“Although Silicon Valley Capital has an advantage due to its location, not all ventures in Silicon Valley are promising. In fact, did you know that Silicon Valley is the place in the U.S. where the most scammers are located?”

“I know. That’s why I was worried… I thought I would regret it if I missed this opportunity.”

“Do you have money?”

“No. I have to compete with Grandpa.”

It means that they will receive investment from Korea Bank. It is questionable whether President Yoon Baek will agree, but that is a problem for her to solve.

“How much money do you expect to need?”

“The price they are asking right now is 3 billion dollars.”

The low price is certain, as the funds managed by Silicon Valley Capital exceed 40 billion dollars and the annual net profit is close to 300 million dollars. The value of a single small capital exceeds 3 trillion won, so the scale is indeed different from that of our country.

“I guess we could raise all the capital. We just sold our lithium mine stake to Tesla.”

The funds are $2 billion. If you combine the amount managed by Korea Asset Management and Mega Asset Management New York Branch, it will be over $1 billion, so if it is difficult, it can be resolved without the help of Korea Bank. However, in that case, there will be a problem in managing the funds due to the lack of liquid funds.

Unfortunately, they ended up investing 100 million dollars in Vectorfly.

Yoon Se-bin’s face brightened at the news of the sale of lithium mine shares.

“Can I get additional funding from Temasek?”

“ah!”

As if he had not expected it, Yoon Se-bin’s worries deepened.

Nam Woon-myung calculated that if he pushed hard enough, he could acquire Capital.

But the key question is whether Silicon Valley capital is worth it.

“When interest rates were low and investment was active in the past, this capital was worth over 6 billion dollars. Now it is half that.”

It may seem cheap at first glance, but it actually isn’t.

As interest rates rise, many ventures are struggling with the risk of bankruptcy. In particular, the money invested in ventures is mostly initial investment, so the results have not yet been visible. In other words, it is difficult to predict success or failure, so it is a venture.

If you believe in the foresight of Silicon Valley Capital, you would expect them to invest in promising ventures, but is that really the case?

If the bonds or stocks held by Capital are at risk of failure, there is no guarantee that Capital will be safe in the future.

Especially since the Silicon Valley banks that have been the mainstay of funding so far are now struggling in a desperate situation.

“Why did capital suddenly become difficult?”

“Recently, there have been many failed ventures, so there are many worthless stocks and bonds, and it has become difficult to attract funds from parent banks… and as a result, funds have been injected into parent banks in return…”

I quickly understood what had happened.

The bottom line is that the fate of Silicon Valley Capital is closely tied to the disposal of Silicon Valley Bank.

The US government announced that it would not bankrupt Silicon Valley Bank but would find a buyer… … and that it would fully guarantee all deposits in the bank, but the repercussions could not be light.

The value of Silicon Valley Capital depends on the fate of Silicon Valley Bank and the success of the ventures it currently invests in. It is difficult to hastily evaluate its value because external factors, not the capabilities of the capital itself, play a greater role.

So, there are no other companies that have jumped into capital acquisition yet.

In this environment, Yoon Se-bin’s bold move to buy could be seen as a decisive move.

Instinctively, Nam Woon-myung was convinced that this was also an opportunity.

While others value things mathematically and decide whether to buy or not, his method is different. He sees the fate of people and businesses.

“How long have you been thinking about it?”

“$4 billion. It’s currently worth $3 billion, but if we go into real negotiations, they’ll ask for more. Silicon Valley Capital is 100% owned by Silicon Valley Finance, the Silicon Valley Bank holding company. They’re going to sell it quickly because of the current crisis facing the bank.”

“Okay. Let’s give it a try.”

Nam Yun-myeong sat down next to her and began to look through the documents.

Naturally, Sunyoon also helped Sebin Yoon.

An unexpected work craze has arisen.

Nam Woon-myung looked into the management of Silicon Valley Finance and Silicon Valley Capital.

Silicon Valley Finance is likely to see a management shakeup now that the problem has arisen. However, since the bonds they invested in are not bad bonds with unknown value like those during the financial crisis, but US Treasury bonds, the shakeup is likely to be small. Of course, this is only if the bank is rehabilitated.

Nam Woon-myung read the fate of executives, including the president of Silicon Valley Bank, from the executive resumes.

It was a small amount compared to the waves, and their fate was not bleak afterward. In other words, it could be said that Silicon Valley banks would weather this crisis.

Will this help Capital? It won’t have a direct impact, since if they take over Capital, the link will be broken. But since they have the same name, and people don’t forget the past easily, it will definitely help stabilize the bank.

This time, we looked at the management of Silicon Valley Capital.

This capital was unusually run by three co-CEOs.

Capital investing in ventures is at great risk of ruining the company due to a single representative’s wrong judgment. Also, if a large amount of money is invested in one venture, it faces structural risks.

To avoid such concerns, it was operated as a three-member representative council.

“It seems reasonable at first glance, but…….”

A consensus is not necessarily a good thing. Venture investment requires quick decisions, unlike other investments, and slow decisions can be a weakness.

I read the fate of the three co-representatives of Nam Woon-myung.

The three co-chairs are two white men and one woman.

Rick Curtis.

Tony Heller.

Martha Stewart.

Among them, Martha Stewart was a woman.

The family background and character of those confirmed by fate were decent. Their past performance was probably pretty good as well. If left to their care, they will run the capital smoothly in the future. However… … .

Tony Heller had an unusual fate.

This person was a type that was different in front and behind. On the outside, he was trusted by people because of his gentle personality, but behind the scenes, he demanded bribes from ventures that requested investment. He was not suitable as a leader who executed large amounts of funds.

Because of this kind of corruption, if you look at his future fate, he was destined to be imprisoned for embezzlement. And that too at a fairly early date.

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“This guy is the problem.”

“yes?”

Yoon Se-bin tilted his head and asked.

Nam Woon-myung pointed to Tony Heller’s resume with his finger.

“Doesn’t it look sinister?”

“Not at all. He seems like a nice guy.”

“If that’s what I’m saying, then so be it.”

Yoon Se-bin, who had been making a dumbfounded expression, nodded with a smirk.

“Yes, if that’s what Mr. Destiny says, then that must be it.”

When Nam Woon-myeong raised his head, Seon Yoon-ah was looking at the two with a bewildered expression.

* * *

The next day I met with Silicon Valley finance executives.

In addition to Nam Woon-myeong and his party, an employee from an overseas branch of the Korea Bank who had flown in from LA joined the party to help with the practical work. This was Yoon Do-cheon’s consideration.

Silicon Valley Finance seemed to be in a state of disarray due to the recent bank failures. Everyone looked haggard, struggling in one way or another.

A middle-aged man with gray hair among them spoke.

“Thank you for coming. As you know, our bank is in a terrible state right now. We just want to sell Silicon Valley Capital as soon as possible to help the bank. We want to make a deal somehow.”

Complaints erupted before the contract was signed.

Their indifferent behavior in the face of the enemy, despite the fact that they were saying nothing, gave me a good idea of ​​how hard a time they have been having lately.

“If the price is reasonable, we would also like to close the contract quickly.”

Yoon Se-bin responded with a smile.

Next, Silicon Valley Finance briefed on the current status of Silicon Valley Capital.

It was almost the same as the information I received and reviewed in a hurry last night. As expected, there were no particular problems with the company itself.

“Silicon Valley Capital is a very good financial firm. At one point, it was worth over $6 billion.”

“There are a lot of ventures that are going under these days as the money supply dries up in the market. There must be a lot of bad debts or stocks within the capital, right?”

“Ha! That’s right. That’s why the price went down a bit.”

“How much does the bank want?”

“Please tell us what you want. In our current situation, we have no choice but to accept whatever you want.”

I felt a sense of urgency to sell it quickly.

Yoon Se-bin looked back at him.

Nam Woon-myung knows the value of Silicon Valley Capital. After roughly examining the fate of the executives I saw yesterday, the future of Capital is bright.

There is no need to go so far as to take advantage of a struggling opponent and lower the price.

In the future, after Silicon Valley Bank transfers its stake, there will be no common denominator except the name. Even so, since the bank will have to be used as an LP in the future, it is advantageous to be friendly with the institution that holds the money.

Nam Yun-myeong opened his mouth.

“We’re thinking $2.5 billion. That’s half of what it was at its peak.”

The faces of the bank executives became clouded and their expressions hardened.

“That’s a bit…….”

The moment the gray-haired middle-aged man opened his mouth, Nam Woon-myung continued speaking.

“Instead, if the contract is signed, I can give you cash right away, even tomorrow.”

In an instant, his complexion brightened.

As expected, Nam Woon-myung’s prediction was correct. The size of the amount was not the issue. The issue was how quickly the money was transfused.

The priority was to put out the fire at the bank as quickly as possible. If we could at least pretend to put out the fire, we could ask the government to help us sort things out.

Sun Yoon Ah and Yoon Se Bin looked at him with embarrassed expressions. They looked uncomfortable with him taking out the cards so quickly.

A gray-haired middle-aged man sensed their subtle mood and clapped his hands.

“Okay, let’s do that. But we have our own conditions.”

“What is it?”

“I would like you to maintain employment succession for the time being after acquiring Capital.”

Of course, Nam Woon-myung had no intention of changing the staff. Except for one person.

“Does this apply to everyone?”

“Yes. All of them. This is our final condition.”

* * *

After negotiating with the bank, Nam Un-myeong and his party moved to Silicon Valley Capital.

Yoon Se-bin asked while moving.

“Mr. Destiny, how do you suddenly get $2.5 billion in cash?”

“Borrow from Korea Bank.”

“The amount of money is too large to do that…….”

Nam Woon-myung found a solution for the worried Yoon Se-bin.

“There is an MOU with Tesla, right? The $2 billion will arrive in a month. Borrowing $2.5 billion by then shouldn’t be difficult. Especially if Chairman Yoon Do-cheon is paying attention.”

Yoon Se-bin sighed.

A short-term loan of one month seems possible, even though the amount is large.

“In the meantime, we will contact Temasek to see if they want to make additional investments. It is a profitable business for us anyway. Because in a year or so, Silicon Valley Bank will stabilize, and then we can borrow money from the bank again.”

According to Nam Woon-myung’s calculations, if he could somehow make up the money within ten days, a solution would be in sight from then on.

So there is no reason to drag out the contract and invest more money.

“Whew, that’s true. My head works quickly in times like this.”

“Me? It’s always like that.”

At his nagging, Yoon Se-bin and Sun Yoon-ah looked at each other and frowned.

Meanwhile, the car arrived at Silicon Valley Capital, a financial firm occupying two floors of a three-story building in the heart of Silicon Valley.

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