Showing posts with label offer. Show all posts
Showing posts with label offer. Show all posts

Saturday, October 22, 2022

New business inquiries -3 even while staying at home.

Every generation needs a revolution - an entrepreneurial revolution




Even while staying at home, no active business development assistant (which could cost anywhere from P20 to P40K a month)  three business opportunities in the area of memorialization  came my way 

1   A 1.4 hectare property which can become an all in business center for memorialization in Calabarzon
     Population of area is 290K  Open for joint venture    This is near the church only about 300 meters              away

2  Another 1.8 hectare project in a major city in Calabarzon with 290K population likewise..  It does not
    have our product yet  It is only 3.1 km from the Cathedral

3,  A 8 hectare project along the highway in Region 1 which could be had in a joint venture.  It serves 8 towns of a most populous vote rich province.   This would make our business number 3 in this province.  
This is 3.1 km away from the Cathedral.   

Wednesday, March 8, 2017

Brilliant deal making from seasoned and veteran businessman

Every generation needs a revolution - an entrepreneurial revolution

Rizal Philippines
March 8, 2017

One of the companies which we oversee a memorial park in the north, is being wooed by a leading memorial park.   The first offer was rejected by my joint venture partners because it was  single digit million arrived at using present value.

The next offer which we discussed yesterday, made the offer 5x  the original offer, to be paid  levedl payment, over a period of 72 months.   If we do a PV of that payment, there would be about P12 million discount.  Our JV partners were salivating and wanted to grab the offer, except that they wanted to have at least 20% dp and the term reduced to 48 months

We have over 5,200 items worth over P40,000 each.   When they take over, they would sell our lots to pay us off.

Looking back analyzing the deal:

1.  We would lose about P96 million GP over the next say 20 years.   (that is after the op ex)

2.  We could do the same;  Discount our products down to 30T and they would sell fast, and generate over y amount of cash, flow, which would be 50% more than the payments to be made to us of x amount.  In other words the deal  is guisado with our own fat.  That is why they are balking on cash payment.  

Brilliant.  Whoever can think of such a deal?  One of the veterans of the trade, the former head of a chem company was thinking along that line all the time:   OPM and using 0 of their own money to get a business deal

However our marketing staff there is not that capable to sell the inventories fast