Chapter Twenty-Seven: Cisco Begins to Show Its Fangs
For Sequoia Capital's requirements, Henry is delaying again and again.
Sequoia Capital has invested, and it is also getting farther and farther away from Cisco, and it is necessary for Cisco to reintroduce new strategic partners and expand the enterprise!
Henry went to Cisco and gathered the company's management to discuss the matter!
When Mr. and Mrs. Boss, John Chambers, and other company executives arrived, Henry said what he meant.
"Some time ago, Sequoia Capital invested heavily in our rival companies. I think everyone should be very aware of Sequoia Capital's behavior. I won't say too much, since Sequoia Capital has harmed Cisco's interests, then we must find a new strategic partner. At the same time, Cisco must step up and grow!"
"The fastest development speed of the company is undoubtedly the merger and acquisition of other companies, not only to obtain the other party's talent and technology, but also to expand the scale of the company very quickly!"
"Therefore, this time, we at Cisco must start the merger and acquisition plan, and we must act quickly, accurately, and ruthlessly! Find the target and then attack quickly, whether it is suppressed in the outside world or internal division, all the means that can be used will be used! Our goal is to acquire 10 companies in at least half a year!!!
After Henry finished speaking, the Bossaks were a little more conservative, and a little thought that Henry's pace was too fast, and it was too difficult to acquire ten companies in half a year, and the company did not have much capital, and if it was to acquire other companies, the pressure on the capital chain would be very great!!
"Henry, are we in too much of a hurry? It's okay to buy one or two, but it's impossible to acquire ten companies in half a year!" said Bosak.
"If we don't act quickly when the company gets investment, it will be tantamount to giving the company the opportunity to grow and grow! Allowing the enemy to develop is tantamount to self-destruction! Ten companies is a bit more, but it is not impossible!" Henry said, and then looked at John Chambers, 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! Cisco has now developed into an M&A plan, and the success rate of acquiring 10 companies in half a year is still very high!"
Acknowledging Henry's words, John Chambers went on to say, "A small networking equipment company that can be acquired for millions of dollars. For a medium-sized network equipment company, the acquisition amount ranges from 10 million to 100 million. Cisco's funds on the 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 proportion of liabilities, and raise several times the funds with less equity investment (about 10%), to acquire and restructure the enterprise, and repay the liabilities with the future profits and cash flow of the acquired and restructured enterprises. In this way, we don't have to spend too much money, which can reduce the financial pressure on the company!!"
"In addition, several major banks in the United States, such as JPMorgan Bank and Citibank, 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 the merger plan!
Henry's faith was entirely due to faith in John Chambers. In his previous life, John Chambers proved himself and took Cisco from a medium-sized company to the pinnacle of existence in the United States and the world!!
John Chambers has been called "one of the best CEOs of the 21st century", and this title is not for nothing!
At the end of the meeting, John Chambers was given full responsibility for the M&A plan.
The Bossaks are a bit conservative, and it is inevitable that they will have conflicts with Cisco management in their previous lives and eventually part ways......
Cisco's development potential is endless, and its reputation is also excellent, and Morgan Bank and Citibank are willing to lend money to Cisco, and at the same time help Cisco with its merger and acquisition plan! As for the specific operational issues and the target of the merger, Henry does not pay attention, Henry only cares about the result. John Chambers and others convinced Henry with their vision and skill, and he believed that John Chambers and his team would get things done!
No matter how good Henry is, he doesn't stay in Cisco very often, and his understanding of the company and its competitors is far from being comparable to that of John Chambers.
Although Henry is not at Cisco, he is well aware of the company's M&A plans!
Sequoia Capital, as a shareholder of Cisco, also has a seat on the board of directors, it is impossible not to know about Cisco's latest moves. On the one hand, it ventilated to the company, on the other hand, it is a little happy to see it, Cisco's behavior is very optimistic for investors, once listed, the stock price will definitely soar like a rocket!
Sequoia Capital was suddenly a little conflicted. A godson, a pro-son, no matter who does well, it benefits!
However, in the bottom of my heart, I naturally hope that my son will be good. Sequoia Capital has invested $60 million in the company, holding 35.2% of the company's shares, and has become the company's largest shareholder!
Now, Sequoia Capital hopes that Cisco will go public soon!
It didn't take long for Henry to get what he wanted......
In June, the U.S. Science Foundation announced the completion of the network acceleration project, which will increase the network speed to an average of 0.5Mbps per user, and the network access fee will also be ten times cheaper, only $1,000 a year. With the improvement of network speed and the sharp reduction of network access fees, the number of Internet users has increased suddenly, and there are hundreds or thousands of users who access the Internet every day, and tens of thousands of people will access the Internet every day.
Cisco suddenly ushered in a big explosion, and the business volume was extremely heavy. Even though Cisco has started hiring in large numbers, it is still very nervous. However, Cisco's performance has increased more than tenfold all at once!
Henry also put the issue of Cisco's listing on the agenda, and it was expected to go public by the end of 1988!
In July, Henry had just turned fourteen. Because Cisco was so busy, Henry sometimes had to help with some corporate matters. 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 to urge him to be in a hurry, but it happened that the company's technicians were busy at other customers' homes and couldn't rush over for a while!
Henry was ready to go home, so he simply stopped by to help the customer install the network equipment.
Once on the ground, Henry knocked on the door and shouted, "Cisco Services, network installation!"
It didn't take long for the door to open slowly.
When Henry looked at the owner of the house, he was stunned: "Nicole Kidman?" (everyone votes...... )
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