Cisco operates strategy-first corporate development, unlike transaction-focused peers
Rob Salvagno · 20VC: Inside The Acquisition Decision-Making Process at Cisco, How To Measure True Success in M&A Evaluation & Why By Not Speaking To Corp Dev Teams You Are Closing The Door On The Biggest Potential Accelerator To Your Business with Rob Salvagno, VP of Co · Dec 30, 2019 · at 10:07
Rob Salvagno, VP of Corporate Development and Cisco Investments, differentiates Cisco's M&A philosophy from typical corporate development groups.
0:00 / 0:09exact quote · 9.8s
720p mp4 · rendered on demand · StarZero watermark
“A lot of corp dev groups, I think they're all about the transaction. They get a call. I want to buy this company. And that's what they do for Cisco. It really starts with the strategy.”
quote is from the automated transcript, cleaned for reading: filler sounds and stutters are removed, nothing is rephrased. names can be misheard (the analysis reads context, assessments check outside sources). how →
More from Rob Salvagno
Refusing to engage corporate development closes doors to major enterprise growth
“If you ignore that because you don't see A Cisco as a potential partner or investor or potentially a future acquirer. What you're doing is you're really prematurely closing the door on what may be the biggest potential accelerator for your business.”
Acquisition multiples matter less if the buyer can create post-merger value
“If you're in a position that you can see an opportunity to add value, the fair multiple is actually less relevant.”
Cisco acquired non-portfolio startup Viptela over its own portfolio company VeloCloud
“When we made the decision on who we were going to make part of Cisco, we acquired a company that was not a Cisco investment. We acquired a company called the Viptela. And since that time, Viptela has come onto Cisco. It has become our lead SD-WAN offering. And…”
VC incentives diverge from founders on $100 million versus billion-dollar exits
“Entrepreneurs are often surrounded by venture investors, perhaps very successful venture investors, that may have motivations that somewhat differ from that of the entrepreneur, but the entrepreneur may be going through it for the first time. The VC may have d…”