Claire met Ogmondu Ford again at his newly leased office building.
At first, Claire wasn't impressed by the £310,000 annual rent for the two-story building in London's new financial district. But after renovations, the 600-square-meter space was transformed, gleaming with a touch of modern tech flair.
Steve Chen sat casually across from Claire, though he didn't look great. He was undergoing treatment at Wellington Private Hospital.
"The acquisition of Qingdao China Youth Travel Service went smoothly. China's very open to foreign investment," Ogmondu Ford said crisply, standing to shake Claire's hand. "By the end of the month, you'll have the notarized documents from the public notary. Congratulations, Mr. Claire, you're now the owner of a travel agency valued at £1.94 million!"
Claire shook his hand, though he wasn't thrilled about Merrill Lynch taking a 14% commission. But when he saw the assets under Qingdao China Youth Travel Service, he felt the deal was worth it. The agency owned a three-story building in Beijing's East Fourth Ring. Sure, the photos showed it was a bit rundown, but if Claire held onto it for a decade, the property alone would more than cover the acquisition cost.
17.25 million RMB for a three-story office building in Beijing's East Fourth Ring? That's a steal no matter how you slice it! Claire was tempted to hand Ogmondu another £3 million to snap up more asset-heavy companies in China.
"Though their market share isn't huge, they've got solid footholds in Shandong, Nanjing, and Beijing. You won't lose on this deal," Ford assured him.
Steve Chen, who'd been quiet, turned toward the sound of customer service reps making calls downstairs. "Is the company structure set up?" he asked.
Claire's face lit up. "Absolutely! It's being managed by a University of Hawaii tourism management grad who worked twelve years in the European division of an American international travel company. His salary's a bit steep—£400,000 a year—but I didn't give him any stock options or shares."
Steve flipped through the staffing and specialty travel brochures Claire handed him. When he saw the company had already signed 140 part-time tour guides, he couldn't hide his surprise at the high-paid executive Claire mentioned.
"We've bought two minibuses, and the hotels, supermarkets, and helicopter landing pad near Lyme Valley Stadium are all renovated," Claire added.
Steve's interest piqued at the mention of a helicopter landing pad. "You're planning personal air tours? That's already common in the UK."
Claire grinned, knowing Steve wasn't familiar with China's market. "Helicopters in China aren't something you can just pay to experience. If I charge £1,000 per minute, I'm confident I'll earn enough by the third tour group to buy a helicopter outright."
Steve didn't argue, seeing Claire's confidence. The first tour group was set to depart from Qingdao on January 1, 2007, right after the acquisition. When Steve first invested in Claire's project, he saw its potential, especially given Claire's uncle, Dennis Erwin, and his years of Premier League experience—a wealth of connections. Add to that Claire's "internet-infused" custom travel concept, and it was a no-brainer.
Privately, Steve and Kai-Fu Lee had discussed the venture. Lee's verdict? "This deal's worth doing. China's economy is booming—we can't underestimate it."
Right after Lee said that, Claire had already organized a 300-person cross-border tour group ready to depart from China. When Steve learned the tour was priced at 49,999 RMB for a 10-day, 10-night international trip, he was stunned. Assembling such an expensive tour in such a short time was no small feat.
"The first tour's main costs are flights and accommodations," Claire explained. "Thanks to Mr. Chen's introduction to Viking Airlines, we got a 10% discount. The charter service fee wasn't waived, but as our bookings and services grow, I'm sure the airline will come around."
"As for Claire Real Estate, most of the revenue and expenses come from the Lyme Valley Stadium hotel. There's also the cost of housing and security for friendly match players, plus health management. Since we're playing a fourth-tier English team, the pressure's low, but we'll need to pay some 'appreciation fees' afterward. The surrounding supermarkets and duty-free shops are self-operated, so we can't yet estimate the tourist shopping rebates."
"I project a 45% profit margin. If we keep this pace for six months, I'm confident that when Claire Cross-Border Custom Travel's first-quarter financials are released, investors from around the world will come knocking. Everyone here could stand to benefit!"
Claire didn't hold back in front of Ogmondu Ford. After all, the spacious office only housed the three of them and the customer service team downstairs. Plus, Steve had recommended Merrill Lynch as their consultant for going public.
With the company growing so fast, Claire had no plans to hire a dedicated financial auditor or manager. His goal was to outpace the global economy and take the company public to cash in quickly. Ogmondu, as Merrill Lynch's client manager, was always present for these discussions.
Claire was confident his strategy was working. The looks of surprise and delight on Steve and Ogmondu's faces told him this was his first step toward success.