Sorry for the late update today.
I have on site work this week.
Please, do expect some disturbance for this week's releases.
Peace Out!
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A few days later, Mouri Seiko returned to Japan, as she had work to attend to.
Lin BaoCheng had asked Iwasaki FengLong to help find home appliance companies. Iwasaki had already selected several targets and faxed the information to Los Angeles. If Lin found a suitable target, someone would have to go negotiate in person — and Seiko was the most suitable candidate.
Meanwhile, the investigation results from the U.S. side had also arrived, and Lin needed to get to work.
There were many American appliance companies, but giants like General Electric's appliance division were out of reach. Industry leaders such as Maytag, Whirlpool, and Lennox were also impossible to acquire.
However, some companies were struggling — like Carrier and York — facing financial difficulties. Some wanted to sell entirely, while others hoped to sell off a department to raise funds.
Reviewing the documents, Lin found that aside from a few small companies operating in multiple appliance categories (potentially selling the whole company), the larger ones only sold single‑product businesses like refrigerators or air conditioners. Companies with diverse product lines would only sell a department or production line.
If possible, Lin wanted his own appliance company to make refrigerators, air conditioners, televisions, washing machines, and more.
Japan also had many appliance companies. Giants like Sony, Hitachi, Sanyo, Toshiba, Sharp, and Panasonic were untouchable. But beneath them were smaller firms, some struggling, and potentially willing to sell.
After screening, Lin identified several targets in both the U.S. and Japan. He immediately instructed Isabella and Seiko to each form teams and begin acquisition negotiations.
Though determined to establish an appliance company, Lin refused to be taken advantage of. He set a strict price bottom line — anything above it, he would reject outright. The actual deal would depend on the negotiating teams' abilities.
Such acquisitions rarely concluded in just a few days. After assigning the tasks to Isabella and Seiko, Lin only needed to check in occasionally on their progress.
With leisure time over, Lin devoted himself fully to office software development. Once the software was complete, he could step back and no longer spend every day at New Century Software.
He had already led development for several months. Even when he wasn't present, employees continued working within the framework he had set. Progress had never stopped, and results were accumulating.
The achievements were significant. Lin believed the software could be completed soon — perhaps within a month if things went smoothly, or two to three months if difficulties arose.
Time passed quickly, and June approached.
Gradually, Isabella and Seiko reported bad news: negotiations were running into trouble.
Seiko's difficulties in Japan were expected. But Isabella was in the U.S., so Lin called her back for a face‑to‑face discussion.
"Bella, tell me the reason."
"Boss, in the end it's the price," Isabella said helplessly. "For example, one target's actual value is US$10 million. But they demand not only a premium, but also that we assume debts and pay severance for employees. The effective premium exceeds 50%. Negotiations are impossible."
"How can that be? Every company is like this?" Lin asked.
His maximum premium was 30%. Appliance technology wasn't insurmountable. With time and effort, he could build a company from scratch. Paying excessive premiums was unnecessary.
"Yes," Isabella nodded. "I had people quietly ask executives at several firms. The reason is this: they believe the oil crisis and economic downturn are over, and global economies will soon recover — especially their own. Rising incomes and consumption will drive demand for appliances, which are household necessities. So they intend to hold on, unless offered very high premiums."
"I see. So that's the reason," Lin said. He knew another oil crisis was coming soon, but he couldn't reveal it — no one would believe him. His choices were either to pay exorbitant premiums or temporarily abandon the idea of acquisitions.
For Lin, founding an appliance company was inevitable. The sooner it was established, the sooner its technology could catch up to world leaders. But he refused to be a fool. Waiting a few years might even allow cheaper acquisitions.
"In that case, let's stop the acquisitions," Lin decided. Though tens of thousands of dollars spent on preliminary work were wasted, there was no choice.
Isabella agreed, then added: "Boss, if you truly want to establish an appliance company, now is actually the best time. If you wait until the economy recovers, acquisitions will only cost more."
"That assumes the economy will improve. But I don't believe it will," Lin said, glancing at her, shaking his head without further explanation.
"You don't think the economy will improve?" Isabella asked, puzzled. Seeing he wouldn't elaborate, she dropped the matter.
After Isabella left, Lin contacted Seiko in Japan. Her difficulties were even greater. Japan's appliance industry was booming at the time. Even struggling companies had confidence, bolstered by competitors eager to acquire them. Without offering high premiums, deals were impossible.
Learning this, Lin told Seiko to end negotiations as well, treating the matter as if it had never happened.
After the call, Lin pondered. Since acquisitions were off the table, his HK$1 billion couldn't just sit in an account earning interest. It had to be invested.
Gold futures were one option — the easiest way to profit at present.
But if possible, Lin preferred industrial investment. He already had plenty in gold futures. Industrial ventures offered greater influence and longer‑term returns.
The question was: which industry should he invest in? That required careful thought.