1 00:00:05,240 --> 00:00:06,600 Speaker 1: This city is bottom flux. 2 00:00:06,680 --> 00:00:09,760 Speaker 2: I'm brattan justin a It's Monday, the first of December. 3 00:00:09,840 --> 00:00:10,280 Speaker 1: Does boyd? 4 00:00:10,320 --> 00:00:12,880 Speaker 3: The taxman and tax woman are at it again, this 5 00:00:12,960 --> 00:00:14,720 Speaker 3: time pointing the finger at trusts. 6 00:00:14,800 --> 00:00:15,000 Speaker 1: Yep. 7 00:00:15,000 --> 00:00:17,800 Speaker 3: The ATO says that white collar professionals and tradees who 8 00:00:17,840 --> 00:00:20,599 Speaker 3: use family trust to reduce tax are in their hitting zone. 9 00:00:20,640 --> 00:00:22,320 Speaker 1: This upcoming tax season. 10 00:00:22,040 --> 00:00:24,320 Speaker 2: Always a scary time to be in the ato's line 11 00:00:24,320 --> 00:00:26,200 Speaker 2: of vision. B Man, true man. Did you know in 12 00:00:26,200 --> 00:00:30,000 Speaker 2: twenty twenty four some big Australian companies aid zero dollars 13 00:00:30,000 --> 00:00:32,240 Speaker 2: in tax despite earning billions in revenue? 14 00:00:32,360 --> 00:00:33,720 Speaker 1: I was somewhat aware. 15 00:00:34,520 --> 00:00:36,760 Speaker 2: Well, how does that make sense? It doesn't really, but 16 00:00:36,840 --> 00:00:38,640 Speaker 2: we break it down in the Flex apps with one 17 00:00:38,640 --> 00:00:42,000 Speaker 2: of the great videos explaining how and why these multi 18 00:00:42,000 --> 00:00:45,000 Speaker 2: billion dollar companies pay zero dollars tax in Australia. So 19 00:00:45,000 --> 00:00:46,520 Speaker 2: if you want to learn more, make sure to download 20 00:00:46,520 --> 00:00:48,280 Speaker 2: the Flex app and check out our latest. 21 00:00:48,040 --> 00:00:51,479 Speaker 3: Video three Spectacular Stories Today, Jesy boy, let's do it 22 00:00:51,520 --> 00:00:55,320 Speaker 3: for our first el. Janna, the cult favorite charcoal chicken chain, 23 00:00:55,560 --> 00:00:57,880 Speaker 3: is set to be snapped up for almost one billion 24 00:00:57,920 --> 00:00:59,880 Speaker 3: dollars by a US private equity giant. 25 00:01:00,400 --> 00:01:02,760 Speaker 2: Talk about hatching an Empire, b Man, what is going 26 00:01:02,760 --> 00:01:03,080 Speaker 2: on here? 27 00:01:03,080 --> 00:01:03,360 Speaker 1: All right? 28 00:01:03,400 --> 00:01:05,440 Speaker 3: So el Janna started in nineteen ninety eight as a 29 00:01:05,440 --> 00:01:08,560 Speaker 3: single shop in Granville, New South Wales, run by migrants 30 00:01:08,560 --> 00:01:10,279 Speaker 3: Andre and Carol Ester Fan. 31 00:01:10,200 --> 00:01:12,320 Speaker 2: The bee Man. Since then, el Janna has built a 32 00:01:12,480 --> 00:01:14,600 Speaker 2: cult following and a bit of a chicken religion. 33 00:01:14,680 --> 00:01:17,360 Speaker 3: Yeah, we're talking one store in nineteen ninety eight, five 34 00:01:17,480 --> 00:01:19,959 Speaker 3: in twenty twenty and now fifty one stores in twenty 35 00:01:19,959 --> 00:01:20,440 Speaker 3: twenty five. 36 00:01:20,560 --> 00:01:23,120 Speaker 2: In fact, Beman, el Janna makes one hundred thousand chickens 37 00:01:23,160 --> 00:01:26,240 Speaker 2: every single week. We're talking over three hundred million in 38 00:01:26,640 --> 00:01:27,400 Speaker 2: gross sales. 39 00:01:27,440 --> 00:01:27,640 Speaker 1: Now. 40 00:01:27,680 --> 00:01:30,200 Speaker 2: Back in September this year, there were rumors swirling that 41 00:01:30,280 --> 00:01:32,800 Speaker 2: el Janna was looking to find a private equity. 42 00:01:32,480 --> 00:01:35,560 Speaker 3: Backup, and now US private equity firm General Atlantic has 43 00:01:35,560 --> 00:01:37,960 Speaker 3: acquired el Janna for almost one billion bucks. 44 00:01:37,680 --> 00:01:39,959 Speaker 2: And Benman and its new owners, el Janna plans to 45 00:01:39,959 --> 00:01:43,240 Speaker 2: open more than thirty more stores in the next twelve months. 46 00:01:42,880 --> 00:01:45,520 Speaker 3: With the goal to chase down fast food chicken giants 47 00:01:45,560 --> 00:01:47,320 Speaker 3: like KFC and Red Rooster. 48 00:01:47,080 --> 00:01:49,200 Speaker 2: And the founding family of el Janna will keep a 49 00:01:49,400 --> 00:01:51,680 Speaker 2: meaningful shareholding as part of this deal. 50 00:01:51,680 --> 00:01:54,960 Speaker 3: Not surprising in a private equity rollover, yep, So what 51 00:01:55,120 --> 00:01:57,440 Speaker 3: is the key learning here? A private equity rollover is 52 00:01:57,440 --> 00:01:59,440 Speaker 3: when the seller of a company keeps a portion of 53 00:01:59,480 --> 00:02:02,760 Speaker 3: their ownership rather than taking the entire amount out in cash. 54 00:02:02,480 --> 00:02:04,920 Speaker 2: And be man. In private equity deals, founders are encouraged 55 00:02:04,960 --> 00:02:08,080 Speaker 2: to retain a rollover state. It aligns incentives between the 56 00:02:08,080 --> 00:02:10,520 Speaker 2: private equity firm and the founder who knows the business 57 00:02:10,520 --> 00:02:12,959 Speaker 2: best yep, the founder who understands the seasoning and the 58 00:02:13,000 --> 00:02:16,360 Speaker 2: secret source and the die hard customer base better than anyone. 59 00:02:16,160 --> 00:02:16,800 Speaker 1: And Josie Boite. 60 00:02:16,840 --> 00:02:20,240 Speaker 3: From a financial perspective, rollovers can create even bigger pay 61 00:02:20,280 --> 00:02:20,799 Speaker 3: days later. 62 00:02:21,040 --> 00:02:23,239 Speaker 2: For example, if a founder sells seventy percent of the 63 00:02:23,240 --> 00:02:25,640 Speaker 2: business today hold's thirty percent for the next few years, 64 00:02:25,720 --> 00:02:28,920 Speaker 2: that remaining state can grow substantially as the business expense. 65 00:02:28,960 --> 00:02:31,560 Speaker 2: Sometimes the founder's rollover can exceed the initial payout and 66 00:02:31,560 --> 00:02:34,600 Speaker 2: be man. Given private equity firms like General Atlantic typically 67 00:02:34,720 --> 00:02:37,359 Speaker 2: hold onto companies for three to seven years, it means 68 00:02:37,400 --> 00:02:39,959 Speaker 2: a second pay day is often not too far away. 69 00:02:40,000 --> 00:02:42,800 Speaker 3: For our second story, Google is taking it up to 70 00:02:42,880 --> 00:02:45,440 Speaker 3: Nvidia in the chip wars as it looks to sell 71 00:02:45,520 --> 00:02:48,120 Speaker 3: its own proprietary chips to Meta and as a result, 72 00:02:48,120 --> 00:02:49,360 Speaker 3: it shares one up four percent. 73 00:02:49,400 --> 00:02:52,200 Speaker 2: Googles officially entered the AI chip chat b man, So 74 00:02:52,360 --> 00:02:53,200 Speaker 2: what is going on here? 75 00:02:53,240 --> 00:02:55,360 Speaker 3: Well, joseb Waite, we know that every tech company and 76 00:02:55,520 --> 00:02:58,560 Speaker 3: their dog are investing billions and billions into AI at 77 00:02:58,600 --> 00:02:59,160 Speaker 3: the moment, and. 78 00:02:59,160 --> 00:03:01,840 Speaker 2: Behind every a model that can write essays and write 79 00:03:01,880 --> 00:03:04,560 Speaker 2: emails is a very powerful AI chip. 80 00:03:04,720 --> 00:03:07,280 Speaker 3: But now Meta Who's in talks to spend billions buying 81 00:03:07,280 --> 00:03:10,720 Speaker 3: Google's own AI chips called TPUs for its data centers 82 00:03:10,720 --> 00:03:11,839 Speaker 3: starting in twenty twenty seven. 83 00:03:11,919 --> 00:03:13,800 Speaker 2: And they man, that's a bit of a plot twist, 84 00:03:13,840 --> 00:03:17,240 Speaker 2: considering Metas has already spent seventy two billion US dollars 85 00:03:17,280 --> 00:03:20,559 Speaker 2: on chips within Video just this year alone, and while Google. 86 00:03:20,280 --> 00:03:23,040 Speaker 3: Has been producing its own chips since twenty sixteen, this 87 00:03:23,160 --> 00:03:25,919 Speaker 3: marks a big, big strategic shift yeap. 88 00:03:26,040 --> 00:03:29,400 Speaker 2: That's because Google previously kept their own chips, their TPUs, 89 00:03:29,520 --> 00:03:32,440 Speaker 2: exclusively inside their own data centers, and. 90 00:03:32,360 --> 00:03:35,200 Speaker 3: This deal could help Google claw away as much as 91 00:03:35,200 --> 00:03:37,800 Speaker 3: ten percent of in Video's annual revenue, which is worth 92 00:03:37,840 --> 00:03:38,720 Speaker 3: billions huge. 93 00:03:38,760 --> 00:03:40,040 Speaker 2: So what is the key learning here? 94 00:03:40,160 --> 00:03:41,920 Speaker 3: In Video might be the king of the AI chip 95 00:03:42,000 --> 00:03:44,360 Speaker 3: world right now, but the kingdom is beginning to feel 96 00:03:44,440 --> 00:03:46,400 Speaker 3: a little crowded right now. 97 00:03:46,240 --> 00:03:48,800 Speaker 2: In video is believed to control eighty five to ninety 98 00:03:48,840 --> 00:03:51,120 Speaker 2: percent of the entire semiconductor market. 99 00:03:51,120 --> 00:03:52,720 Speaker 1: It's giving real monopoly energy here. 100 00:03:52,880 --> 00:03:55,440 Speaker 2: Yeah, and that's pretty strong in a market that's also 101 00:03:55,440 --> 00:03:57,360 Speaker 2: grown rapidly in the last few years. 102 00:03:57,160 --> 00:03:58,920 Speaker 1: Which a boy with such lucrative deals. 103 00:03:58,920 --> 00:04:01,000 Speaker 3: Many of the big tech company are also starting to 104 00:04:01,000 --> 00:04:03,840 Speaker 3: see the benefit of producing and selling their own AI 105 00:04:03,960 --> 00:04:09,080 Speaker 3: chips too. Google has TPUs, Amazon has Trainium, and Inferentia a. 106 00:04:09,200 --> 00:04:11,720 Speaker 2: Meta is also starting to develop their own in house. 107 00:04:11,560 --> 00:04:13,440 Speaker 3: Chips as well, because these companies don't want to keep 108 00:04:13,480 --> 00:04:15,880 Speaker 3: paying in videos sky high prices. 109 00:04:15,360 --> 00:04:17,919 Speaker 2: And given these companies contribute more than fifty percent of 110 00:04:17,920 --> 00:04:21,520 Speaker 2: Invidious current revenue in videous customers and now also becoming 111 00:04:21,560 --> 00:04:22,320 Speaker 2: its competitors. 112 00:04:22,360 --> 00:04:25,400 Speaker 3: For our third and final story, Harvey Norman has seen 113 00:04:25,440 --> 00:04:28,200 Speaker 3: its sales jump nine percent in the last quarter as 114 00:04:28,240 --> 00:04:30,359 Speaker 3: its international growth pushes the business forward. 115 00:04:30,400 --> 00:04:32,320 Speaker 2: Nothing like a bit of Jerry Harvey spice to kick 116 00:04:32,360 --> 00:04:34,560 Speaker 2: off the retail season, BMN, so tell me more so. 117 00:04:34,600 --> 00:04:37,760 Speaker 3: Harvey Norman is obviously the Australian retail giants selling pretty 118 00:04:37,839 --> 00:04:39,119 Speaker 3: much everything these days. 119 00:04:39,160 --> 00:04:43,480 Speaker 2: There's lounges, there's dining tables, at dish washers, laptops, giant TVs, 120 00:04:43,560 --> 00:04:45,200 Speaker 2: you name it, they've got it. Uh huh. 121 00:04:45,240 --> 00:04:48,480 Speaker 3: And despite the retail downturn, Harvey Norman reported a nine 122 00:04:48,520 --> 00:04:51,760 Speaker 3: percent sales increase from July through to November compared to 123 00:04:51,800 --> 00:04:53,039 Speaker 3: the same time last year. 124 00:04:53,120 --> 00:04:55,120 Speaker 2: Go, Harvey, go, I say, and where did the growth 125 00:04:55,120 --> 00:04:55,440 Speaker 2: come from? 126 00:04:55,480 --> 00:04:57,080 Speaker 1: B Man, very obvious places. 127 00:04:57,160 --> 00:05:01,400 Speaker 3: Josey boy, I'm talking Slovenia and Croatia. Excuse me, yeah, 128 00:05:01,440 --> 00:05:04,279 Speaker 3: you heard me correctly, Harvy Norman. International stores are pretty 129 00:05:04,320 --> 00:05:07,000 Speaker 3: low key, but they're absolutely killing it. Sales in Slovenia 130 00:05:07,040 --> 00:05:08,800 Speaker 3: and Croatia are up twenty five percent. 131 00:05:08,640 --> 00:05:11,320 Speaker 2: And twenty two percent. Sales jump in the UK as well. 132 00:05:11,480 --> 00:05:14,560 Speaker 1: Pretty good or as they say in Croatia Verlo dobra. 133 00:05:16,440 --> 00:05:17,920 Speaker 2: So what is the key? Leading year? 134 00:05:18,120 --> 00:05:22,279 Speaker 3: Global diversification can become a powerful buffer for retailers. 135 00:05:21,839 --> 00:05:25,240 Speaker 2: Especially when different regions move through economic cycles at very 136 00:05:25,240 --> 00:05:26,040 Speaker 2: different speeds. 137 00:05:26,040 --> 00:05:30,239 Speaker 3: Harvey Norman's update showed international stores outperforming the Australian market 138 00:05:30,320 --> 00:05:32,400 Speaker 3: by a mile and be Man. 139 00:05:32,560 --> 00:05:35,120 Speaker 2: That kind of growth helps smooth out softer periods at 140 00:05:35,120 --> 00:05:37,600 Speaker 2: hope and for investors, this global mix becomes a sign 141 00:05:37,600 --> 00:05:39,880 Speaker 2: of resilience. In fact, they made Harvey Norman's share price 142 00:05:39,920 --> 00:05:42,440 Speaker 2: is up more than forty percent this year alone. 143 00:05:42,520 --> 00:05:45,760 Speaker 1: But Jesse Boy, not every international expansion goes according to plants. 144 00:05:45,839 --> 00:05:48,560 Speaker 2: Smiggle, for example, they had huge ambitions to become the 145 00:05:48,600 --> 00:05:50,200 Speaker 2: global stationary powerhouse. 146 00:05:50,320 --> 00:05:52,839 Speaker 3: Yeah, but in the twenty twenty five financial year, Smiggle's 147 00:05:52,880 --> 00:05:56,480 Speaker 3: global sales dropped over ten percent compared to the previous year. 148 00:05:56,520 --> 00:05:59,120 Speaker 2: So be man. If it's well executed and well timed, 149 00:05:59,200 --> 00:06:02,280 Speaker 2: a global state could be a real profit entiine foxam. 150 00:06:02,320 --> 00:06:05,280 Speaker 2: Imagine paying zero dollars in tax but making a billion 151 00:06:05,320 --> 00:06:08,360 Speaker 2: dollars in revenue. That is how some companies in Australia 152 00:06:08,400 --> 00:06:10,719 Speaker 2: have operated in twenty twenty four. We break it down, 153 00:06:10,720 --> 00:06:13,240 Speaker 2: including which companies paid zero dollars tax and how they 154 00:06:13,279 --> 00:06:15,120 Speaker 2: manage to do it all in the Flex app. So 155 00:06:15,120 --> 00:06:16,600 Speaker 2: if you want to learn more, make sure to download 156 00:06:16,600 --> 00:06:17,680 Speaker 2: the app and check it all out. 157 00:06:17,720 --> 00:06:20,080 Speaker 1: Thanks for listening and we'll see you on Wednesday.