America's Road to Fame

Chapter 292 How much does it cost to buy Palu?

As time went by, the Republic of Palu gradually became less confident about their previous asking price of 20 billion US dollars, because after shouting out this price, the people and organizations that had previously expressed interest in purchasing the Republic of Palu, After trying to quote a price, it was decisively rejected by the Republic of Palu because there was not even a price exceeding US$10 billion.

But after that, after they rejected those offers, they did not continue to contact and inquire, which made the officials of Palu Republic a little panicked. Could it be that their offers were really too high?
You must know that as time goes by, they are getting closer and closer to the result of the entire country being submerged, so it is obvious that the price of selling the country will also continue to fall.

In fact, from the perspective of Palu, their initial offer of 20 billion US dollars is not unreasonable.After all, there are 1.2 people in their country. If they maintain their life for a period of time in the future, each person will be about 10 US dollars, which is 12 billion US dollars.

In addition, the Palu government has foreign debts. The accumulated debts owed to governments including Australia and some banks total about 4 million U.S. dollars, which adds up to 16 billion U.S. dollars.

In the end, it is reasonable to add 4 million U.S. dollars to the mutual fund of all citizens, so they called out a price of 20 billion U.S. dollars. At this moment, if someone really wants to buy at this price, they will definitely agree without hesitation Yes, I believe the people will agree.

But who knew that these people's bids were all so low, and none of them exceeded 10 billion US dollars. In this case, with the experience they owe in investment funds, they are completely unsure that the citizens will spend the rest of their lives comfortably...

Many things are like this. When you don’t think about it, you don’t think much of it, but once you think about it, the more you think about it, the more you think it’s a good idea.

Just like the Republic of Palu, when they didn't think that they could sell the entire island before the country was submerged in the sea, they just thought about how to deal with it when that time really came, and they had no other thoughts.

But when someone suggested that we could sell the island now, they woke up like a dream, and the more they thought about it, the more they felt that this was really a good way.

But the problem now is that although some people are really willing to buy it, their bid is indeed a bit far from their expectations. Is it true that the island is only sold for 20 billion US dollars?
Just when they were so entangled, the team headed by Erica started to contact Palu and put forward their offer.

When acquiring an economy, how do you value it?This may be something that many people have not thought about. After all, the overall acquisition of such an economy by individuals or organizations has never occurred in history.

However, in some respects, we can learn from the valuation method of the company.

An economy like Palu, which has little potential for development and is in a relatively stable state, can be compared to the PE valuation method, which is less cyclical and has relatively stable profitability.

PE refers to the price-earnings ratio, so the company's valuation is roughly its annual net profit multiplied by the price-earnings ratio.

For example, if a company's annual net profit is 1 million yuan, and the average price-earnings ratio of listed companies in this industry is about 25 times, then the company can be valued at 25 billion yuan.

Putting it on the country of Palu, their annual GDP at this time is less than 5000 million U.S. dollars, even if calculated at a relatively high price-earnings ratio of 30 times, it is only 15 billion U.S. dollars.

Therefore, it is not unreasonable for those individuals and organizations who contacted them to bid no more than 10 billion US dollars. After all, they all believe that Palu will be covered by sea water in less than 20 years. The price-earnings ratio calculates this price.

On behalf of William Chen, Erica's bid for Palu Republic was 15 billion US dollars!
Because William Chen understands that Palu cannot be valued simply by the method of valuing the company. Because some values ​​cannot be developed because of the laziness of their government and people, it does not mean that others cannot develop them.

Therefore, after hearing the logic of Palu's initial asking price of 20 billion US dollars, he made his own bid for this——

Moreover, after William Chen bought Palu, he would assume Palu's previous foreign debts totaling US$4 million.

When initially in contact with Erica and the others, Palu had some doubts about their bid of 15 billion US dollars so easily. It was not dissatisfaction, but fear that they would not be able to pay the funds.

But when the other party revealed that they were making the purchase on behalf of William Chen, Palu immediately felt at ease after a simple verification.

After all, Chen William's popularity can be said to be greater than that of the generals of the United States during this period. If it were him, there would be no need to doubt the other party's ability to pay. After all, his large acquisitions can often be obtained from news reports. See, although the country of Palu is small, it does not mean that they are isolated from the world.

The problem now is that William Chen's bid of 15 billion US dollars, plus his commitment to bear the 4 million US dollars of Palu's foreign debt, will add up to 19 billion US dollars, which is a little short of their previous expected price of 20 billion US dollars.

However, this is also the highest price they have received, and it is also the price closest to their expectations. This also makes Palu, Erica and the officials who are negotiating feel a little embarrassed, especially when they hear that Erica represents William Chen Speaking of which, this is their first bid, and it will also be the last bid. This price also represents Chen William's sincerity. If the other party cannot accept it, Chen William will withdraw from the acquisition of Palu Island.

In the end, Palu said that it would take some time to think about it, and then he would contact them proactively when he had a conclusion.

What Erica said also represented Chen William's true thoughts. He would pay this price to buy Palu Island. On the one hand, in the eyes of the future, after the volcano erupted, the area of ​​the island would expand a lot. And he is also interested in realizing some of his ideals on this territory that will become a "blank paper" in the future. After all, as a reborn person, blindly making money and expanding his influence will eventually reach its peak, but In the form of their own territory, there will be more possibilities.

Another purpose is to save the lives of the 1.2 people in Palu. After all, according to the prediction of the Eye of the Future, most of these people will not be spared under such a violent natural disaster.If the island can be bought and all the people of Palu moved to live in other countries, they will also be able to escape this catastrophe.

But these reasons also have limits, and he will not do them indefinitely.

God only saves those who save themselves. If the people of Palu are really so greedy, then there is no need for anyone to save them. William Chen has given them the opportunity. How to choose is up to them.

Therefore, although he already has some plans after buying Palu Island, if the price is really high, then giving up is the best choice.

After Palu got Chen William's conditions and expressed his wish to consider it, Chen William naturally wouldn't give them room to bargain with other parties with his own bid.

Soon, the people of Palu learned the news that someone had paid a high price to buy the Palu Republic, and even the specific plan was known to the public.

Many families of three or four, or even families with more children, get excited immediately after calculating the compensation they can get.

For a time, the whole of Palu was full of people's discussions about this, and everyone generally expressed their eagerness to hope that this transaction could be completed.

(End of this chapter)