I Am A Trilionaire - Chapter 27
For Sequoia Capital requirements, Henry tried to postpone it.
Because Sequoia Capital is investing in 3com, and is also moving further away from Cisco, Cisco needs to find new strategic partners to expand its business!
Henry goes to Cisco and calls the company’s management to discuss this issue!
After Bossacks, John Chambers and other company executives arrived, Henry said what he had been thinking about.
“Some time ago, Sequoia Capital invested heavily in our rival company, 3com. I think everyone should be very clear about Sequoia Capital’s behavior. I will not say much. Because Sequoia Capital has harmed Cisco’s interests, then we must find new strategic partners. At the same time, Cisco must accelerate and grow stronger! ”
“If the company wants to develop faster, there is no doubt the way to acquire another company, not only can it get talent and technology from other parties, but it can also expand the scale of the company very quickly!”
“So, this time, we at Cisco have to start a merger plan, and actions must be fast, accurate, and cruel! Find targets and attack quickly, whether it’s external repression or internal differentiation, all the available methods will be used. Our goal is acquire ten companies in at least half a year !!! ”
After Henry finished, Bossack was rather conservative. They think that Henry is taking steps too fast. It was too difficult to acquire ten companies in half a year, and the company did not have a lot of funds. If you want to acquire another company, the capital chain will be under pressure! ! !
“Henry, are we in too much of a hurry? It’s okay to acquire one or two, but it’s impossible to complete the acquisition of ten companies in half a year!” Said Bosack.
“3com companies get investments, if we don’t act fast, it’s the same as giving 3com an opportunity to grow and develop! Letting enemies develop is tantamount to self-destruction! Even though ten companies are a little more numerous, it’s not impossible!” Henry said, and then looked at John Chambers with a definite decision. With John Chambers, John Chambers was the main executor of the Cisco acquisition king. His talent in acquisition is unmatched!
When John Chambers saw Henry looking at him, he knew Henry was talking to himself. John Chambers fell silent, 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 to Henry’s words, John Chambers went on to say: “A small network equipment company only needs a few million US dollars to acquire. A medium-sized network equipment company needs 10 million to 100 million dollars to acquire. Funds on Cisco books may not sufficient, but we can borrow from banks, or through purchases with leverage, use credit to finance capital, use financial leverage to increase debt ratios, and finance with less equity investment (around 10%). Several times the funds, companies will be acquired and reorganized , and future profits and cash flow from companies that are acquired and reorganized will be used to pay debts. In this way, we don’t need to spend too much money and can reduce the company’s financial pressure !!! ”
“In addition, Morgan Bank, Citibank and other major US banks are very willing to work with Cisco!”
After John Chambers finished speaking, Henry applauded and agreed: “Chambers is right, we can borrow money, or through leveraged purchases to complete the company’s merger and acquisition plan! Humane things, I believe, as long as Cisco does, it will work. ! ”
Henry is confident, entirely because he has confidence in John Chambers. In his previous life, John Chambers proved himself and brought Cisco from a mid-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 an illusion!
After the meeting, the company’s merger and acquisition plans were fully delegated to John Chambers.
The potential for developing Cisco is unlimited, and its reputation is also extraordinary. Morgan Bank and Citibank are willing to lend loans to Cisco and help Cisco plan mergers and acquisitions! Regarding specific operational issues and M&A targets, Henry did not care, Henry only cared about the results. The vision and skills of John Chambers and others convinced Henry. He believes that John Chambers and his team will do everything well!
Great job, but Henry doesn’t often stay at Cisco, and his understanding of the company and its competitors is far less than John Chambers. If he steers indiscriminately, he will cause trouble! A certain level of decentralization is like succumbing, which is easy and can achieve extraordinary success! However, John Chambers will write a report and fax Henry to the target acquisition, the situation of the target company and the need for the acquisition have all been explained and analyzed in detail!
Even though Henry isn’t at Cisco, he knows everything about the company’s M&A plans!
As a Cisco shareholder, Sequoia Capital still sits on the board of directors, it’s impossible not to be aware of Cisco’s latest actions. On the one hand, a little bit concerned with the company 3Com, on the other hand, they are a little happy to see its success. The Cisco movement is very promising for investors. After going public, the stock price will definitely jump like a rocket!
Sequoia Capital suddenly felt somewhat contradictory. Whether it’s a Cisco or 3com company, no matter who is successful, they still benefit!
However, deep down in Steve’s heart, I naturally wish for 3com’s success. Sequoia Capital invested 60 million US dollars in 3com and held 35.2% of shares, and has become the largest shareholder of 3com! And at Cisco only holds 10% of shares!
And now, Sequoia Capital hopes that Cisco will go public soon!
In June, the National Science Foundation announced the completion of a network acceleration project, the network speed will increase to an average of 0.5 Mbps per use, and the cost of network access is also ten times cheaper, only one thousand dollars a year. With the increase in network speed and a sharp decrease in network access costs, network users have increased dramatically. There are hundreds of users who access the Internet every day, and tens of thousands of people will be connected to the Internet every day.
Cisco soon ushered in a major disaster, and the volume of its business was very heavy.
Even so, Cisco has begun recruiting large numbers of employees and Cisco’s performance has suddenly increased more than ten times!
Regarding Cisco’s registration issues, Henry also entered the agenda, and is expected to be registered by the end of 1988!
In July, Henry was only fourteen years old. Because Cisco was too busy, Henry sometimes had to help with some company matters. Sometimes Henry has to work part time as a network technician, helping users install modems and routers. In Beverly Hills, where Henry was staying, 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 another customer’s house, and they couldn’t help the customers there for a while!
Henry is ready to go by then help customers install network equipment.
When he arrived, Henry knocked on the door and shouted: “Cisco Services, Network Installation! Is there anyone?”
Not long after, the door opened slowly.
When Henry saw the owner of the house, he was stunned: “Nicole Kidman?”