Inside Cisco: The Real Story of Sustained M and A Growth: Amazon.co.uk: Ed Paulson: Books

Review

Once the gold–plated standard for how to succeed on the Internet, Cisco systems has since lost some of its luster. But even though the company′s stock price has dropped, Paulson (The Technology M&A Guidebook) makes a convincing case for still using Cisco as a model for how other companies can manage their M&A (merger and acquisition) growth. For one, Cisco buys companies not just when it is trying to expand or protect itself against potential customers, but rather "as an integral part of its system," thus looking ahead for future growth. Indeed, Cisco′s acquisition have been prolific, and the author explains who the company targets for acquisitions and why. Unlike many acquirers, Cisco tries to retain most of the personnel during an acquisition, and Paulson shows how that makes good sense. According to Cisco CEO John Chambers, "If you pay $500,00 to $2 million per person––and you lose 30 to 40 percent of those people in the first two years, you′ve made a terrible decision." Paulson shows most of Cisco′s major acquisitions and the buying price per employee, which appropriate for a book on M&A′s, of course, but he is too meandering to offer specific, helpful information. Those interested in refining their company′s M&A strategies won′t find too much here to help them; Paulson makes a great case why Cisco is good at what it does, but aphorisms like "[Cisco] listens closely to its customers" are less than effective. Such lines suggest that the book is targeted more at a general business audience, but how many of those readers actually need advice on how to buy companies? (Publishers Weekly September 10, 2001)

"Paulson makes a convincing case for still using Cisco as a model for how other companies can manage their M&A (merger and acquisition) growth...[he]makes a great case why Cisco is good at what it does." (Publishers Weekly, September 10, 2001)

Product Description

An insider reveals the core strategies behind Cisco′s phenomenal success

Most savvy business observers agree that the major component in Cisco′s phenomenal growth has been their unwavering commitment to expanding their product line through aggressive acquisitions. Since 1995, the "New Goliath," as Cisco is known throughout the business and finance communities, has acquired more than sixty companies. In this groundbreaking book, a Silicon Valley veteran, Ed Paulson, uses his strong connections to Cisco′s management to reveal the M&A gospel according to Cisco.

Paulson explores how Cisco has used acquisitions to stay ahead of its competitors, analyzes their strategies and proven methods for incorporating new companies seamlessly, positively, and profitably. Paulson reveals the centerpiece of Cisco′s acquisition strategy–one that is company–focused, culturally compatible, and retains staff. He examines how Cisco executives determine if a target company is compatible with Cisco′s corporate culture and strategic outlook and describes the extraordinary lengths to which these executives will go to gain the loyalty of acquired people. This book details the Cisco methodology and illustrates how it can be applied to companies across industries.

Ed Paulson (Chicago, IL) is President of Technology and Communications, Inc., a business and technology consulting firm and a visiting professor at DePaul University′s School for New Training. He is a Silicon Valley veteran with more than two decades of experience and the author of numerous business and technology books, most recently, The Technology M&A Guidebook (Wiley: 0–471–36010–4).

See all Product Description

Customer Reviews

There are no customer reviews yet on Amazon.co.uk.

5 star

4 star

3 star

2 star

1 star

Write a customer review

Most Helpful Customer Reviews on Amazon.com ^(beta)

Amazon.com: 11 reviews

4 of 4 people found the following review helpful

Insightful! 10 Sep 2002

By Rolf Dobelli - Published on Amazon.com

Format:Hardcover

There's no reason to beat around the bush: This is not an objective history of Cisco. It is an unabashedly adulatory look at one of the most influential companies of the New Economy. If you're looking for a critical assessment of Cisco's business model and execution, look elsewhere. That does not mean that you should ignore Inside Cisco, however. On the contrary, we from getAbstract strongly recommend this book for its detailed dissection of Cisco's acquisition methodology, from its target identification and selection to integration and employee retention. Anyone in business would do well to read this book, study these processes and make them their own.

6 of 7 people found the following review helpful

Good application of an already sound methodology 5 Oct 2001

By Robert Hadsworth - Published on Amazon.com

Paulsen does a commendable job in clearly explaining the Cisco methodology which John Chambers apparently adapted from the M&A strategists Clemente and Greenspan. This orientation,coined as market-focused and detailed in "Winning at Mergers & Acquisitions" seems to have been employed rather broadly throughout Cisco. Similar to Clemente/Greenspan's core methodology which analyzes the people, products and processes from strategy through integration, Paulsen explores the integration at Cisco of personnel, products, and production. It's hard to ignore the incredible similarity or get beyond the fact that so much of the guidance has already been introduced to the genre by Clemente and Greenspan in articles, white papers, and books over the last decade. Still for those who have read Winning at Mergers, there remain many interesting anecdotes and discussions in Inside Cisco. What I find most interesting is Cisco's incorporation of M&A into every facet of its being, and its quest for culturally compatible targets. Paulsen stresses that this is a mjor reason for acquisition success and I agree. John Chambers has developed an efficient and successful machine that -through no fault of his own - became unraveled as his industry did. I wonder how a share price in the teens will impact the strategy in the future. Nevertheless, the book is well written and therefore keeps the reader interested.

5 of 6 people found the following review helpful

I was one, and it wasn't like that 5 Sep 2005

By Mehetabelle - Published on Amazon.com

I don't 'get' why so many people think so highly of this book. I was one of the M&A folks at Cisco, doing mostly A. It wasn't so structured, nor so successful, nor so wonderful. We just did the best we can -- each deal is different.

Nice to have the name, the money, market share, etc. Made it much easier to get an acceptable deal. If I were on the other side of the table, life would have been less nice.

The author's uncritical look at the Cisco way makes me suspect that (a) he just didn't know or (b) he was paid off.

› Go to Amazon.com to see all 11 reviews

Were these reviews helpful? Let us know

Inside Cisco: The Real Story of Sustained M and A Growth [Hardcover]

Formats

Product details

More About the Author

Product Description

Review

Product Description

Tag this product

What Other Items Do Customers Buy After Viewing This Item?

Customer Reviews

Customer Discussions

Start a new discussion

Listmania!

Look for similar items by category

Look for similar items by subject

Feedback