Question
Mergers and Acquisitions (M&A) can significantly impact a company's market cap. They can bring new talent and capabilities into the organization, eliminate competition, and save time and money. This can lead to increased market share and revenue, which can increase the company's market cap. For instance, between 1995 and 2000, Cisco bought seventy-nine companies, which largely contributed to them becoming a $230 billion market cap company.
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Marc Andreessen's high growth framework is the following: Step 1. hyper-focus on product-market fit. Step 2. Great products will attract copycats. Step 3. Innovate your products so you don't get undercut by competitors or you'll run yourself out of business by innovators who do, like Blockbuster and Netflix. &A is a powerful and underrated tool, even for smaller-scale start-ups in the hyper-growth phase. For example, Google Maps, Android, and Gmail were all acquisitions that Google made relatively early on. M&A brings new talent and capabilities into your organization, eliminate competition, and save you heaps of time and money. Use M&As and buy other companies liberally. Andreessen discusses the pattern of companies like IBM, Microsoft, and Cisco that grew off the back of M&A. Between 1995 and 2000 Cisco bought seventy-nine companies and that largely made them the $230 billion market cap company they are today. A great way to eliminate bias in hiring is candidate scoring. Instead of ...
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