Silicon Valley
Chapter 27
For Sequoia Capital''s requirements, Henry is procrastinating.
Sequoia Capital''s investment in 3Com is also a step further away from Cisco. It is necessary for Cisco to re introduce new strategic partners and expand its business!
Henry went to Cisco and called on the company''s management to discuss the matter!
When the possacks and John Chambers and other company executives arrived, Henry said what he meant.
"Some time ago, Sequoia invested heavily in our competitor 3Com. As for Sequoia Capital''s behavior, I think everyone should be very clear. I will not say much. Since Sequoia Capital has damaged Cisco''s interests, we must find a new strategic partner. At the same time, Cisco must speed up its pace and grow
"The fastest development of the company is undoubtedly the merger and acquisition of other companies, which can not only obtain the talents and technology of the other side, but also expand the scale of the company very quickly!"
"Therefore, this time, we Cisco must start the M & a plan, and the action must be fast, accurate and ruthless! Find the target and attack quickly. No matter it''s external pressure or internal differentiation, all available means will be used! Our goal is to acquire ten enterprises in at least half a year!! "
After Henry finished, the bossacks were a little more conservative. They thought that Henry''s pace was too fast. It was too difficult to buy ten companies in half a year. Moreover, the company''s capital was not much. If they bought other companies, the capital chain pressure would be very great!!!
"Henry, are we in a hurry? It''s OK to buy one or two companies, and it''s impossible to buy ten companies in half a year! " Said posak.
"If 3Com company gets investment, if we don''t act quickly, it is equal to let 3Com get the opportunity to develop and grow! Letting the enemy develop is tantamount to self destruction! Although there are more than ten companies, it is not impossible! " Henry said, and then looked at John chambers. John Chambers is the ultimate executive of Cisco, the acquisition king. His talent in acquisition is incomparable!
When John Chambers saw Henry looking at him, he knew that Henry was going to speak for himself. John Chambers paused and said, "I think the chairman''s plan is very good! It''s time for Cisco to launch M & a plan, and the success rate of acquiring ten companies in half a year is still very high! "
After agreeing with Henry''s words, John Chambers went on: "a small network equipment company, the acquisition costs only a few million dollars. For a medium-sized network equipment company, the amount of acquisition will vary from 10 million to 100 million. Cisco may not have enough funds on its books, but we can use bank loans or leveraged buyouts to finance capital through credit, increase the proportion of liabilities by using financial leverage, and raise several times of funds with less equity investment (about 10%), so as to acquire and restructure the enterprise, and use the acquired capital and the company''s assets The future profits and cash flow of the restructured enterprise are used to repay the liabilities. In this way, we don''t have to spend too much money, and we can reduce the financial pressure of the company
"In addition, Morgan bank, Citibank and other major U.S. banks are very willing to cooperate with Cisco!"
When John Chambers finished speaking, Henry applauded and agreed: "chambers is right. We can borrow money or complete the M & a plan through leveraged buyout! I believe that as long as Cisco does it, it will succeed! "
Henry was confident because he had faith in John chambers. In his previous life, John Chambers proved himself, and brought Cisco from a medium-sized enterprise to the top, becoming a giant in the United States and even in the world!!!
John Chambers is known as "one of the best CEOs in the 21st century", which is not a false name!
After the meeting, John Chambers was fully responsible for the merger and acquisition plan.
The bossacks are really a bit conservative. It''s hard to avoid that they would have conflicts with Cisco''s management in their previous lives, and they would eventually go their separate ways
Cisco''s development potential is infinite, and its reputation is also excellent. Both Morgan bank and Citibank are willing to lend money to Cisco, and help Cisco with its M & a plan at the same time! As for the specific operation and the target of M & A, Henry didn''t pay attention to it. Henry only cared about the result. Henry was convinced by the vision and skill of John Chambers and others. He believed that John Chambers and his team would do a good job!
Henry is a bull, but he doesn''t often stay in Cisco. His understanding of the company and its competitors is far from that of John chambers. He will make a big mess if he leads blindly! A certain degree of decentralization is like the rule of law, which is easy and can achieve extraordinary success! However, John Chambers will write a report on the target of acquisition and fax it to Henry. The situation of the target company and the necessity of acquisition are explained and analyzed in detail one by one!
Although Henry is not in Cisco, he knows the company''s M & a plan like the back of his hand!
Sequoia Capital as a shareholder of Cisco, but also occupy a seat on the board of directors, it is impossible not to know Cisco''s latest action. On the one hand, it informs 3Com, on the other hand, it is a little happy to see its success. Cisco''s behavior is very optimistic for investors. Once it goes public, its stock price will soar like a rocket!
Sequoia Capital is a bit contradictory. A dry son, a pro son, no matter who does well, it benefits!
However, at the bottom of my heart, I naturally hope to kiss my son. Sequoia capital invested 60 million US dollars in 3Com company before and after, holding 35.2% of shares, and has become the largest shareholder of 3Com company! And it only has a 10% stake in Cisco!
Now, Sequoia Capital wants Cisco to go public quickly!
Before long, Henry really wanted to do what he wanted
In June, the US Science Foundation announced the completion of the network acceleration project. The network speed will be increased to 0.5mbps per user on average, and the access fee will be 10 times cheaper, only $1000 a year. With the improvement of network speed and the sharp reduction of network access fees, the number of network users has increased dramatically. There are hundreds of users accessing the Internet every day, and tens of thousands of people accessing the Internet every day.
Cisco immediately ushered in a big explosion, the business volume is extremely heavy. Even though Cisco has started recruiting in large numbers, it is still very nervous. However, Cisco''s performance has increased more than ten times all of a sudden!
As for the listing of Cisco, Henry is also on the agenda, and is expected to be listed at the end of 1988!
In July, Henry just turned 14. Because Cisco is too busy, Henry sometimes has to help with some company affairs. Sometimes Henry had to work part-time as a network technician to help users install modems and routers. In Beverly Hills, where Henry stayed, a user made three or five phone calls and was in a hurry, but it happened that the company''s technicians were busy at other customers'' homes and couldn''t get there for a while!
Henry is ready to go home and help customers install network equipment.
When he got there, Henry knocked on the door and called out, "Cisco Services, network installation! Is anyone there
Before long, the door opened slowly.
When Henry looked at the owner of the house, he was stunned: "Nicole Kidman?"( Everybody vote...)