Richard Liu is the founder and CEO of JD.com, the largest e-commerce company in China. As of early 2018, the company was estimated to be worth over $12 billion. Liu is a business genius going by his success story. He is a self-made billionaire who utilized innovative ideas to build a successful venture that currently attracts over 100 million active customers today. The company is using cutting edge technology to come up with new innovative solutions that fit into the current global economic environment.
Liu was born in Jiangsu province of China. He was born in a humble family, typical of many families in the region at the time. His family was running a small coal shipping business. In his early life, his parents taught him the importance of hard work and education. Through primary, secondary and tertiary education, Richard Liu was committed to hard work. He enrolled in a sociology program at the People’s University of China and graduated with a bachelors. He spent most of his time boosting his knowledge in his chosen major, at some point he realized that there was importance in widening his scope of knowledge so that he could fit into many employment opportunities. He taught himself computer programming and other computer science related disciplines.
Employment and entrepreneurship
After graduating from the university, Liu got a job with Japan Life, a natural supplement provider in China. Due to his understanding of computers, he was promoted to the position of Director of Computers. In 1998, Liu left Japan Life to start his own business. He rented a small rental space and created his first computer accessories store. Besides the products he sold, Liu emphasized on great customer care service, utilization of technology in meeting the businesses goals and providing easy means of transaction. Although there were other businesses doing internet business, Liu was ready to set himself apart from the rest by selling genuine products at the right price. At the time, internet business had a bad reputation for engaging in the sale of fake products and price cheating. Richard Liu recognized this as a great opportunity that he could tap into. It is then that he started JD.com in 2004.
HGGC specializes in making transactions that can help two or more companies provide clients with improved customer service. An example of this is the sale of Davies Group minority stock to Alberta Investment Management Corporation, which provided AIMCo with new growth and expansion opportunities.
Types of Investments HGGC Typically Makes
Mergers – One example of this is when HGGC orchestrated the merger between Mi9 and MyWebGrocer. Mi9 provides online shopping software, and MyWebGrocer is a digital media and software company. Both corporations joined in an effort to provide strengthened retail operations for brands around the world including Levi’s, Giant Eagle and Abercrombie.
Acquisitions – For instance, HGGC acquired the Nutraceutical International Corporation in 2017. This company was formerly run by CEO and Chairman Frank W. “Bill” Gay II for almost 25 years. Chad J. Clawson took his place after Bill Gay retired. The purpose of this acquisition was to continue growth and expansion in a way that better serves its vitamin, mineral and supplement customers.
Capital investments – Three major investment funds were started that raised more than $4 billion in capital commitments. Primary investors include these three technology companies: MyWebGrocer, Hybris and FPX. These investment funds were raised to continue to provide support to customers who make purchases online and to companies who want to enhance customer service tools.
More About HGGC
This private equity company just celebrated its 10th anniversary in 2018. They make relationships with and transactions with mid-market public and private firms. Their investment range usually is from $25-$125 million in companies with an EBITDA revenue between $15-$57 million. Enterprise value typically sought after usually is between $100-$500 million.
HGGC also usually seeks to hold the majority of company shares when making deals. If not, they typically aim toward acquiring control rights even if the transaction results in minority holdings. Industries of interest typically include technology, health care, industrial and automotive, and business services.
Their clenched lending standards excel alongside the crowd of funding institutions. While other companies are pennywise with money, Equities First Holdings collaborate with consumers who don’t measure up for a credit-based loan. This contributing organization also welcome individual or groups needing to raise money swiftly. Nonetheless, their stock-based loans and interest are willingly growing, having a higher loan to value ratio. However, borrowers have options, and the bank has decided to reduce these options. The CEO and founder, Al Christy, Jr. has stepped in to fill in the gap anywhere embracers are stuck. As a new way offering the chance of obtaining loans collateralized by stocks for businesses.