Silicon Valley

For Sequoia Capital's request, Henry is procrastinating again and again.

Sequoia Capital has invested, and it is also going further and further with Cisco. It is necessary for Cisco to re-introduce new strategic partners and expand its business!

Henry went to Cisco to convene the company's management to discuss the matter!

After the Bosaks and company executives such as John Chambers came, Henry explained what he meant.

"Some time ago, Sequoia Capital invested heavily in our competitor companies. I think everyone should be very clear about Sequoia Capital's behavior. I won't say much, since Sequoia Capital has already harmed Cisco's interests, Then we have to find a new strategic partner. At the same time, Cisco has to step up and grow!”

"The fastest growth rate of the company is undoubtedly the acquisition of other companies, which can not only obtain the talents and technologies of the other party, but also expand the company's scale extremely quickly!"

"So, this time, we Cisco must start the M\u0026A 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 Posac couple was a little more conservative. They thought that Henry's pace was too fast. It was too difficult to acquire ten companies in half a year, and the company didn't have much capital. If it was to acquire other companies, the pressure on the capital chain would be very high. How big! ! !

"Henry, are we in a hurry? It's okay to acquire one or two companies. It's impossible to complete the acquisition of ten companies in half a year!" Posac said.

"If the company gets investment, if we don't act quickly, it means that we will have the opportunity to develop and grow! Letting the enemy develop is equivalent 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 acquisitions is unparalleled!

When John Chambers saw Henry looking at him, he knew that Henry was going to speak for himself. John Chamberston paused and said, "I think the chairman's plan is very good! Now that Cisco has developed, it is time to carry out a merger and acquisition 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 continued: "A small network equipment company can be acquired for only a few million dollars. A medium-sized network equipment company can be acquired for anywhere from 10 million to 100 million dollars. .Cisco may not have enough funds on its books, but we can borrow money from banks or leveraged buyouts, use credit to finance capital, use financial leverage to increase the debt ratio, and finance it with less equity investment (about 10%). Several times of funds are used to acquire and reorganize the company, and to repay the debt with the future profits and cash flow of the acquired and reorganized company. In this way, we don’t have to spend too much money, which can reduce the company’s financial pressure!!!”

"In addition, Morgan Bank, Citibank and other major banks in the United States are very willing to cooperate with Cisco!"

After John Chambers finished speaking, Henry applauded and agreed: "Chambers is right, we can borrow money, or use leveraged buyouts to complete corporate mergers and acquisitions! It's a matter of people, I believe that as long as Cisco does it, it will definitely It will work!"

Henry has confidence entirely because he has confidence in John Chambers. In the previous life, John Chambers proved himself and took Cisco from a medium-sized company to the top, and became a giant in the United States and even the world! ! !

John Chambers is known as "one of the best CEOs of the 21st century", and this title is not in vain!

After the meeting, the plan for corporate mergers and acquisitions is solely in charge of John Chambers.

The Bosacs are a bit conservative, and it is inevitable that they would have conflicts with Cisco's management in their previous lives, and finally parted ways...

Cisco's development potential is endless, and its reputation is also excellent. Morgan Bank and Citibank are willing to give Cisco loans and help Cisco to carry out M\u0026A plans! Regarding the specific operational issues and acquisition targets, Henry did not pay attention to it. Henry only cared about the results. The vision and skill of John Chambers and others convinced Henry, and he believed that John Chambers and the team he led would do well!

Henry is as good as he is, but he doesn't stay at Cisco very often, and his understanding of the company and its competitors is far from that of John Chambers. A certain degree of delegating power is like ruling from an arch, which is easy and can achieve extraordinary success! However, John Chambers will write a report on the acquisition target and fax it to Henry. The situation of the target company and the necessity of the acquisition are all explained and analyzed in detail one by one!

Although Henry is not at Cisco, he knows the company's M\u0026A plans like the back of the hand!

As a shareholder of Cisco, Sequoia Capital also occupies a seat on the board of directors, and it is impossible not to know about Cisco's latest actions. On the one hand, it informs the company, and on the other hand, it is a bit happy to see it succeed. For investors, Cisco's behavior is very optimistic. Once listed, the stock price will definitely soar like a rocket!

Sequoia Capital was suddenly a little conflicted. A godson, a real son, no matter who does it well, it benefits!

However, in the bottom of my heart, I naturally hope that my son will be well. Sequoia Capital 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 has a 10% stake in Cisco!

Now, Sequoia Capital hopes that Cisco will go public as soon as possible!

It didn't take long for Henry to follow his wish...

In June, the US Science Foundation announced that the network speed-up project was completed, the network speed will increase to an average of 0.5Mbps per user, and the network access fee is also ten times cheaper, only $1,000 a year. With the increase of Internet speed and the sharp reduction of Internet access fees, the number of Internet users has increased sharply. There are hundreds of users accessing the Internet every day, and there will be tens of thousands of people accessing the Internet every day.

Cisco suddenly ushered in a big outbreak, the business volume is extremely heavy. Even though Cisco has started hiring in droves, it's still very nervous. However, Cisco's performance suddenly increased more than tenfold!

For the issue of Cisco's listing, Henry also put it on the agenda, and it is expected to be listed at the end of 1988!

Henry also just turned fourteen in July. Because Cisco is too busy, Henry sometimes has to help with some corporate affairs. Sometimes Henry had to work part-time as a network technician, helping users install modems (cats) and routers. Just in Beverly Hills where Henry stayed, there was a user who made three or five phone calls urgently, but it happened that the company's technicians were busy at other customers' homes and couldn't make it in time!

Henry was ready to go home, and simply dropped by to help customers install network equipment.

At the ground, Henry knocked on the door and shouted, "Cisco service, network installation! Anyone?"

Not long after, the door slowly opened.

Henry was stunned when he saw the owner of the house: "Nicole Kidman?" (Everyone voted...)