For Sequoia Capital's requirements, Henry has been procrastinating.
Sequoia Capital has invested, and it is also moving further and further away from Cisco. It is necessary for Cisco to re-introduce new strategic partners and expand its business!
Henry went to Cisco to summon the company's management to discuss the matter!
After the Posacks and John Chambers and other company executives came, Henry said what he meant.
"Some time ago, Sequoia Capital invested heavily in our competitor company. I think everyone should be very clear about Sequoia Capital's behavior. I don't say much. Since Sequoia Capital has harmed Cisco's interests, Then we must find a new strategic partner. At the same time, Cisco must accelerate its pace and grow stronger!"
"The fastest growth of the company is undoubtedly the acquisition of other companies, not only can obtain the other party's talents and technology, but also can expand the company's scale very quickly!"
"So, this time, we at Cisco must start the merger and acquisition plan, and the action must be fast, accurate, and ruthless! Find the target and attack quickly, whether it is external suppression or internal differentiation, all available means will be used. Our goal is to acquire ten companies in at least half a year!!"
After Henry finished speaking, the Possacks were a little conservative. They thought that Henry was taking too fast. It was too difficult to acquire ten companies in half a year, and the company didn't have much funds. If it were to acquire other companies, the capital chain would be under pressure Great! !
"Henry, are we in a hurry? It's okay to buy one or two, but it's impossible to complete the acquisition of ten companies in half a year!" Bossack said.
"If the company gets investment, if we don't act quickly, we will give it a chance to grow! Letting the enemy develop is tantamount to self-destruction! Although there are more ten companies, it is not impossible!" Henry said, and then looked at John. Chambers, John Chambers is the ultimate executor of Cisco's acquisition king, and his talent in acquisition is unparalleled!
John Chambers saw Henry look at him and knew that Henry was going to speak by himself. John Chamberston paused and said: "I think the chairman's plan is very good! It's time for Cisco to develop mergers and acquisitions, 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 to say: "A small network equipment company needs only a few million U.S. dollars to acquire. A medium-sized network equipment company needs to acquire a value ranging from 10 million to 100 million US dollars. The funds on Cisco's books may be insufficient, but we can borrow from banks, or through leveraged buyouts, use credit to finance capital, use financial leverage to increase the debt ratio, and use less equity investment (approximately 10%) to finance. Several times the funds, the company will be acquired and reorganized, and the future profits and cash flows of the acquired and reorganized companies will be used to repay the debt. In this way, we don't have to spend too much money and can reduce the company's financial pressure!!"
"In addition, Morgan Bank, Citibank and other major U.S. banks are very willing to cooperate with Cisco!"
After John Chambers finished speaking, Henry applauded and agreed: "Chambers is right, we can borrow money, or through leveraged buyouts to complete corporate mergers and acquisitions plans! It is human, I believe, as long as Cisco does it, it will definitely It will succeed!"
Henry has confidence, entirely because he has confidence in John Chambers. In his previous life, John Chambers proved himself and brought Cisco from a medium-sized company to its peak, becoming a giant in the United States and even the world! !
John Chambers is known as "one of the best CEOs of the 21st century", this title is not a vain name!
After the meeting, the plan for corporate mergers and acquisitions was given full responsibility to John Chambers.
The Posacks are really a bit conservative, and it is inevitable that they will have conflicts with Cisco management in their previous lives, and finally part ways...
Cisco's development potential is endless, and its reputation is also excellent. Morgan Bank and Citibank are willing to lend Cisco loans and help Cisco with its merger and acquisition plan! Regarding specific operational issues and M&A targets, Henry didn't care about it. Henry only cared about the results. The vision and skill of John Chambers and others convinced Henry. He believed that John Chambers and his team would do things well!
Henry is great, but he doesn't stay in Cisco very often, and his understanding of the company and its competitors is far from that of John Chambers. If he directs blindly, he will get into trouble! A certain degree of decentralization is like ruling down the arch, which is easy and can achieve extraordinary success! However, John Chambers will write a report and fax it to Henry about the target of the acquisition. The situation of the target company and the necessity of the acquisition are all explained and analyzed in detail!
Henry is not in Cisco, but he knows all about the company's M&A plan!
As a shareholder of Cisco, Sequoia Capital still occupies a seat on the board of directors. It is impossible not to know the latest actions of Cisco. On the one hand, it whispers to the company, on the other hand, it is a bit happy to see its results. Cisco's behavior is very optimistic for investors. Once it goes public, the stock price will surely soar like a rocket!
Sequoia Capital suddenly felt a bit contradictory. A godson, a son, no matter who does it well, it benefits!
However, in the bottom of my heart, I still hope to kiss my son. Sequoia Capital has invested a total of 60 million US dollars in the company before and after, holding 35.2% of the shares, and has become the company's largest shareholder! And it only holds 10% of the shares in Cisco!
Now, UU Read www.uukanshu.com Sequoia Capital hopes that Cisco will be listed soon!
It didn't take long for Henry to really follow his wish...
In June, the National Science Foundation announced the completion of the network speed-up project. The network speed will be increased to an average of 0.5 Mbps per user, and the network access fee will be ten times cheaper, only one thousand US dollars a year. With the increase in network speed and the sharp decrease in network access fees, network users have increased dramatically. There are hundreds of users who access the Internet every day, and tens of thousands of people will access the Internet every day.
Cisco immediately ushered in a big outbreak, and the business volume was extremely heavy. Even though Cisco has begun hiring in large numbers, it is still very nervous. However, Cisco's performance suddenly increased by more than ten times!
Regarding the issue of Cisco's listing, Henry is also on the agenda, and it is expected to be listed at the end of 1988!
In July, Henry also just turned fourteen. Because Cisco was too busy, Henry sometimes had to help with some company affairs. Sometimes Henry had to work part-time as a network technician, helping users install modems and routers. In Beverly Hills where Henry stayed, there was a user who made three or five phone calls in a hurry, but it happened that the company's technicians were busy at other customers' homes, and they couldn't make it there for a while!
Henry prepares to go home and simply helps the client install network equipment.
Upon reaching the ground, Henry knocked on the door and shouted: "Cisco services, network installation! Anyone?"
Not long after, the door opened slowly.
Henry looked at the owner of the house and was stunned: "Nicole Kidman?"