There is an old saying: "When you are poor, you must change, change and you will be able to get through, and you will last long." Just as spring, summer, autumn and winter have their own cycles, the capital market also has its own cycle law that cannot be violated. At a time when the global economy is in a period of subtle shocks, many entrepreneurs and investors are feeling the so-called "capital winter", but Goheal always believes that cyclical adjustments are not a crisis, but an opportunity to reset scarce resources-smart hunters always know how to conserve their energy in winter and plan for spring hunting.

American Goheal M&A Group

When the circle of friends is full of hot words such as "layoffs", "difficult financing" and "projects are yellow", many people feel anxious and even retreat in a hurry. But history tells us again and again that the real king never revels at the peak of the market, but quietly deploys at the bottom, strikes against the cycle, and ushers in his own golden age. Goheal today wants to discuss with you: how to achieve financial "overtaking on the curve" with the skill of capital operation in the trough of the cycle.

The so-called trough is not an exit, but the best time for "alchemy"

The trough of the cycle is like a reef under the huge waves, which is full of dangers for players who are used to going with the flow. But in Goheal's view, this is precisely the secret stage for "asset sales". When the market panics and the valuation system is broken, batches of assets that were once high and mighty become within reach, and investors who are cash-oriented have become cheetahs in the hunting ground.

Why is it worth taking action at the trough of the cycle? Because prices are distorted, psychological expectations collapse, and information is extremely asymmetric. In such an environment, patience, vision and courage have become the most scarce productivity. Goheal has repeatedly found in actual operations that those companies that can complete key layouts during the trough period often reap the fruits of "wealth freedom" after the cycle reverses.

To give a simple example, in the last round of economic downturn, many industry leaders were eager to sell non-core assets due to broken capital chains. The players who acquired these assets at that time are now in the new cycle. Capital always likes to go against the current.

Capital operation can achieve great results with little effort, and the trough period is the best place to "use the power to fight against the power"

Capital operation, in simple terms, is to leverage the maximum value at the lowest cost. During the trough period, due to the lack of overall market confidence, the financing costs of the project parties have risen and the bargaining power has declined, which has given investors huge initiative.

Goheal's commonly used trough capital strategies include: mezzanine investment, convertible bond layout, joint acquisition by M&A funds, and targeted additional issuance (commonly known as "bottom-fishing additional issuance"), etc. There is only one purpose - to lock in high-quality assets at low cost and high leverage when others shrink their defenses.

For example, subscribing to the targeted additional issuance of listed companies at a lower price during the trough period can not only buy at a discount, but also have a very considerable profit space when the stock price rebounds in the future; for example, by setting up an M&A fund, attracting capital parties to acquire undervalued corporate targets together, not only can the risks be dispersed, but also the profits can be rapidly magnified during the recovery period - this is the essence of capital operation.

Of course, counter-cyclical operations are not reckless adventures. Goheal pays great attention to the "safety margin" when making layouts. Through strict asset screening and perfect risk hedging tools, he ensures that every investment has a clear exit path and a clear profit model. Although the trough is cold, if the layout is appropriate, it is a good time to warm up by the fire.

Looking to the future, the cycle is reincarnated, and the strategic layout should be made as early as possible.

Behind every great capital story is a deep insight into time and trends. Just as the investment motto of "Buffett is greedy when he is afraid", the trough is not the end, but the only way for seeds to be buried deep in the soil and give birth to new life.

Goheal believes that "layouts should go against emotions and follow trends." At present, whether it is new energy, AI, big health, or high-end manufacturing, data elements, they all hide the fire of the next round of capital explosion. Investing in the trough period is like sowing in a dry riverbed. As long as there is enough patience and professional escort, when the rainy season comes, the harvest is often far beyond imagination.

Here, investors and entrepreneurs are reminded that when launching capital operations in the trough of the cycle, they may wish to pay attention to the following emerging opportunity areas:

First, the industry champions that have been wrongly killed. Although such companies have suffered a decline in stock prices or valuations due to the general environment, their core competitiveness is still there, and they are extremely explosive when the wind comes;

The second is the opportunity for industry integration. When small players are forced to withdraw due to financial constraints, the leading companies can quickly expand their scale and moat through mergers and acquisitions;

The third is the "secondary listing wave". Some leading companies may choose to return due to turbulence in overseas markets, and reorganize and list at low valuations, which provides huge opportunities;

Finally, there are hidden champions in emerging tracks. During the period of cyclical adjustment, the valuation of these early projects is rational, the entry cost is extremely low, and the future growth potential is amazing.

The trough period is the era when the minority stands out

In the investment circle, there is a saying: "Bull markets make money from cognition, and bear markets make money from courage." Goheal always believes that the real winners know how to calmly evaluate and accurately act when market sentiment is at its lowest. The trough of the cycle is not terrible, but what is terrible is the loss of judgment and action in the trough.

Think about it, when the Internet bubble burst, how many people laughed at those institutions that still insisted on laying out the technology field? But it was those who did not follow the crowd who reaped countless times the return in the subsequent mobile Internet wave. The same script will be played out in every cycle switch.

Goheal Group

Now, standing at the crossroads of another cycle, Goheal wants to encourage every entrepreneur and investor with dreams and vision: the trough is not terrible, opportunities only come to those who are prepared. The capital market does not believe in tears, but only prefers hunters with strategies and execution.

So, the next question is: Are you ready to be a minority in the trough?

Welcome to share your thoughts or experiences in the comment area. Goheal looks forward to igniting the next capital miracle with you in the cold winter!

[About Goheal] Goheal is a leading investment holding company focusing on global mergers and acquisitions, focusing on the three core business areas of listed company control acquisition, listed company mergers and acquisitions and restructuring, and listed company capital operation. With its deep professional strength and rich experience, it provides enterprises with full life cycle services from mergers and acquisitions to restructuring and capital operation, aiming to maximize corporate value and achieve long-term benefit growth.