My American magical life
Chapter 543 - 543 89 15 Billion She's Worth It!_4

543: Chapter 89: 1.5 Billion, She’s Worth It!_4 543: Chapter 89: 1.5 Billion, She’s Worth It!_4 “Now, having finished explaining the necessity for cross-industry expansion, let’s move on to the expectations for OC after financing.

Friends, please turn to pages nineteen to twenty in the material.

Take a look first, and then I’ll explain.”

Everyone started to read the materials.

Mi’er took a cup of water from the waiter, took a quick sip and then glanced at her brother as if by chance.

Achilles was looking at her too!

This humanoid behemoth gave his beloved sister a thumbs up.

You’re doing great, Mi’er.

The black-haired wealthy woman forced a smile and didn’t give him any more to go on.

Instead, she turned around and began to wipe the whiteboard.

Achilles shrugged his shoulders, boredly flipping through the documents Mi’er had prepared for them.

“Cheng, your MAS’s first-round valuation is $120 million.

How many shares does Mi’er still hold?”

CEO Cheng felt a bit uneasy about Achilles’ question.

“Over thirty percent.

Is there a problem?”

Brother, what do you mean?

“Oh, nothing.

Your first-round valuation is so high, truly impressive.

I remember her OC was valued at only $73 million in its first round of financing.”

It seemed like Achilles was just asking casually, as he started chatting with Cheng.

“It’s probably a big industry difference.

MAS touches on the internet a bit, actually taking a bit of an advantage.”

Cheng Daqi dared not exhibit the slightest hint of pride; he had taken modesty to an extreme that day.

“All right, everyone should be finished by now.

Simply put, OC’s diversification consists of three directions: cosmeceuticals, personal care, and the incubation of niche perfumes.

Cosmeceuticals represent OC’s exploratory expansion within the broader category of the cosmetics industry, with a focus more on marketing than on products.

Personal care is an extension of the perfume category, primarily relying on OC’s branding as a point of differentiation.

The perfume plus personal care model is old but still effective.

Incubation of niche perfumes is where OC’s future focus lies.

The cosmetics market landscape is constantly changing, and opportunities and declines are hidden in these changes.

To better adapt to the future market, OC has to transform from a brand retailer into a ‘perfume incubation platform,’ addressing the increasingly individualized needs of users.”

Everyone had no objections to Mi’er’s plan, which was indeed very general.

There were many details that could be discussed.

But as she said, OC is her company, and she had already succeeded.

People always have that extra bit of faith in those who succeed.

“The fourth point is OC’s target market.

I’ve chosen Hua Country and India, both emerging economies.

In terms of the perfume and cosmetics industry, their market size growth is still very considerable—compared to America and the European Union.

Concrete data might be persuasive…

(I’ll skip that, not out of laziness, but because I’ve written enough before, and this part is easy for domestic readers to understand without elaboration.)

In other words, after this round of financing, OC’s direction includes two aspects: diversified categories and market expansion into the Asian market.

That’s the general situation, any questions so far?

If there are no questions, I’ll move on to the specifics of OC’s current business and data reports.”

Mi’er’s logic was solid: start with the big picture, then move on to the details, and finally discuss the price.

But…

This stuff isn’t worth $1.5 billion.

“Mi’er, if your plan or OC’s plan is just this, I really can’t see anything in OC worth $1.5 billion.

You don’t need to go through the specific data.

You’re making $300 million a year, with only over $30 million in profits.

A profit margin of twelve percent is actually very good, but this kind of success isn’t worth $1.5 billion.”

Sandi’s words were somewhat blunt, but in fact, she was trying to help Mi’er.

From her perspective, Mi’er’s story was good but useless—it was still the same model as the traditional daily chemical giants.

And a valuation of $1.5 billion means raising several hundred million in cash—real hard cash.

That model can’t support OC’s $1.5 billion vision!

Alexandra was reminding Mi’er.

The black-haired wealthy woman understood Sandi’s point.

She knew everyone present was a fair-weather friend and would certainly have objections when it came to forking over cash.

So she remained composed.

“Sandi, everyone, here’s the deal: my expected valuation is $1.5 billion, with a fundraising target of $300 million, which equates to selling a twenty percent stake.

Of this, $100 million will be subordinated funds.

We can set up a revenue target of $2 billion over three years in a bull-put spread.

Actually, OC’s current market valuation can probably reach $1 billion, so $1.5 billion isn’t an overestimation.

The reason I sign the bull-put spread isn’t that OC isn’t worth much, but rather to convince you all.”

$1 billion, in comparison to over $30 million in profit, isn’t low; thirty times can even be considered outrageous.

But startups do carry a premium—it’s the potential that’s being bought.

And since its establishment, OC hasn’t been on the market for many years, nor has it reached a point where decline is evident.

Both revenues and profits are still growing, meaning, OC’s future has room for imagination.

But Alexandra’s skepticism is also valid, which is why the bet Mi’er is proposing is essential.

She needs to use this method to boldly bring in investor money.

After all, the overall growth rate of the perfume industry and competitive landscape are actually quite poor.

The total industry size increases by a few percent each year, and the major players don’t have a large market share.

Under these premises and current circumstances, OC has hit the ceiling and needs to seek diversified expansion to break through the industry’s limitations, hence Temir is planning the third round of financing.

“Hahaha, that $100 million is coming from the University of Missouri’s Bio-Industry Fund.

Everyone can be at ease.”