Darkstone Code Chapter 140 - 0139 Adults, no one has it easy

"Mr. Lynch, I think there are so issues with your statent."

Right after Lynch made a brief market valuation for his Interstellar Trade Company in a "simple" manner, showcasing his skill and astonishing these people, soone voiced a different opinion.

This is quite normal. Business is all about back-and-forth; there’s no rule that others cannot engage in a discussion about pricing.

Lynch, of course, wouldn’t do this. That’s not the way to do business. He took out a box of cigarettes, nodded, and gestured for the other person to continue speaking.

The gentleman with the blue tie raised so differing opinions. "I don’t think evaluating a company should solely be based on its profitability, and the Interstellar Trade Company can’t use all its profits to grow the company itself, so the valuation you proposed might not be very accurate."

The blue tie’s view is essentially similar to the idea that a monthly salary of two hundred yields savings of two thousand four hundred each year. It’s an idealized thod of valuation, but in practice, it’s unlikely to be that straightforward.

First, considering the fluctuations in returns, it’s impossible for the returns to remain within a narrow range. They can fluctuate and sotis even dramatically, creating a significant gap between actual and idealized effects.

Besides, the business has only been developed in the Sabin City area so far; the revenue situation in other regions remains uncertain. Overall, it’s not a simple matter.

Creating all the equipnt and materials for a roadside stall might only cost five hundred, but if it brings its owner three to five hundred in profit each month, does that an this single roadside stall’s current market value could be worth tens of thousands?

Without introducing an access system and thresholds, of course not, which is why Lynch’s claim sowhat suggests a conceptual swap.

Yet, as ntioned above, the reason business is intriguing to many isn’t just because most businessn are enthusiasts of numbers but more so for the ntal battles with others. It’s not just about enjoying the increase in numbers, but relishing the thrill of outsmarting others.

At this mont, Lynch was looking down, striking a match with his fingers, accompanied by a slight hissing sound and a wisp of white smoke. He took a couple of puffs, flicked the matchstick, and threw it into the ashtray.

It wasn’t until then that he looked up with a smile, glanced at the gentleman in the blue tie, took a puff of the cigarette, and spoke as he exhaled, "Why not?"

Before the other person could express their thoughts, Lynch continued with a smile, "I will invest all the money into the company’s construction and operations, making it more complete and expansive."

He leaned back on the sofa, resting his left hand on top of the sofa’s backrest, and his right hand, holding the cigarette, rested on his crossed leg’s knee. He appeared very relaxed while exuding a confident deanor.

"When our channels and coverage satisfy my developnt objectives, I will initiate a transformation, making it the largest distributor in our state at the very least."

"People will have a new choice besides supermarkets and gastores, and this choice will arguably be the best available!"

"Gentlen, this isn’t just a secondhand goods trading business; ultimately, it could perate every corner of people’s lives."

"The appliances they use co from our company, the furniture they use cos from our company, even their houses, their work, their clothing, food, housing, and transportation all co from our company..."

"Gentlen, frankly, when I quoted fifty million, my heart was bleeding, and I even wanted to raise its valuation several tis over, perhaps to discourage you."

He appeared serious and sincere, with a hint of helplessness in his voice, "But I know we are in the sa boat, at least for now we are ’partners’, and I also understand the ga of capital; mutual assistance is the only reason we can stand taller than others."

"If you find this price too high, then I would happily express regret, but if you wish to join this plan, it would give a bit of a headache."

The few people exchanged glances, feeling that what Lynch said was sowhat exaggerated but not entirely impossible. It was a troubleso situation because if it were either definitely true or false, it wouldn’t be so perplexing.

Lynch also talked about leasing secondhand goods and other issues, a more alarming solution to people’s short-term material desires.

The content he ntioned, along with the vision and future he described, made the people sitting opposite him suddenly intrigued.

The more they listened to Lynch describe his ideal company, the more they felt it had potential.

Lynch’s description was so detailed, covering many areas they hadn’t thought of or noticed, leading them to believe Lynch must have a more ticulous comprehensive plan, and he’s implenting it according to said plan.

He’s already taken the most crucial step; as long as he doesn’t make mistakes, the chances for others to "hijack" the opportunity are significantly small. The reason is simple; Lynch’s business is part of Landon’s mayoral push for "welfare policies." His company can be seen as a direct reflection of whether Landon’s mayoral policies are effective and valuable.

The better his company does, the more it illustrates that Landon’s mayoral policies hold societal value and fit the current social environnt. If his company fails, it suggests the policies might not be suitable.

But this failure can only be Lynch’s own; if anyone else’s "interference" leads to Lynch’s company going bankrupt or not expanding as planned, it wouldn’t just offend Lynch individually but also the mayor Landon, and all the capitalists and politicians closely tied to him.

So even if they tried to imitate Lynch’s secondhand goods auctions, the scale couldn’t be significant, and they’d perpetually face so troubles, far more problematic than directly investing in Lynch’s business.

Businessn only like money; they don’t like trouble.

"But a fifty million valuation is too much; Henghui’s market value is only just over a hundred million..." said a man with an aqua tie.

Henghui’s market value is roughly 170 million and is already one of the top behemoth companies locally. Many may feel perplexed because 170 million is indeed a staggering number but not as much as one might think.

This is indeed another example of concept swapping. When society needs the public to understand a conglorate’s strength, rely hiding the negative assets is sufficient. For instance, when politicians need significant achievents during their tenure, significant local economic developnts and the arising of successful enterprises beco the best solutions.

Enterprises with tens of millions to over a billion in market value continuously arise, but people aren’t aware that most of these companies operate under a "negative asset operation."

Banks lend them money, and to satisfy certain financial reports’ societal, political, or investor needs, these bank loans beco part of the company’s positive assets, even contributing to profitability in so form.

When reporting, they would report those things the public needs to see, which is also what they want: hiding the source of this money and the debts the company bears.

However, when the local leaders or society need to reduce an enterprise’s influence, they evaluate its market value by offsetting positive and negative assets, then use an arithtic result as the company’s final market value.

A company with ten billion in assets might have a nine billion debt. If a ten billion market-valued company went bankrupt, it might feel like the sky is falling, but when a one-billion company goes under, the public might feel... "I thought they were more remarkable," without a doomsday illusion, maybe even with so schadenfreude.

Simultaneously, "Our newly established company already has a market value of ten billion overnight" sounds far better and more effective than "Our company just started and owes ten billion."

Lynch maintained his composure, nodding slightly at this point, "Interstellar Trade Company doesn’t have any bad assets and won’t have any. Our profits are enough to fully support the company’s developnt needs."

"Gentlen, I have already begun establishing related subsidiaries in each city, and by the end of this year, all will be operational."

"By then, we might still be sitting here, but the valuation you face won’t be fifty million; it’ll be five hundred million, or even more!"

It’s already August, strictly speaking, leaving only a little more than three months until year-end. Lynch skillfully utilized environntal and temporal factors to instill a sense of urgency in these individuals.

Over three months, the market valuation might increase tenfold—they don’t care if it actually increases tenfold by then; they care only about this statent.

Investors aren’t looking to grow alongside a company into glory; they only want money or anything else that benefits them.

Entering once Lynch’s business is fully established versus entering now are entirely different concepts; plus, they trust that by year-end, Lynch, this young man, truly has the guts to boldly claim a five hundred million valuation in front of investors.

"We need to discuss this..."

A gentleman wearing a pink tie stated his position, and others nodded in agreent—they needed so ti to consider how to exert external advantages to pressure Lynch or offset part of the monetary value.

For instance, with the policy resources they hold or through cross-shareholding, the goal remains to minimize cash paynt since no one’s pockets are particularly deep under current circumstances.