Small Giants: Companies That Choose to Be Great Instead of Big

by Bo Burlingham

At the time, it looked like either a wonderfully gutsy or an extremely foolhardy move, depending on your viewpoint. Not only was Erickson turning his back on a fortune, but he was proposing that Clif Bar remain independent and continue to operate as a relatively small private company in a marketplace filled with huge conglomerates out to get it. The investment bankers assured him that the company would be crushed in short order. So did the venture capitalists he spoke to. His partner agreed, and the risk of losing everything she’d worked for frightened her. Shortly thereafter, she resigned from the company and insisted that Erickson cash her out. (She could insist because, as a 50-percent owner, she could have shut the company down if her demands weren’t met. A less-than-50-percent owner does not have as much leverage.) They eventually settled on a deal whereby he would pay her $65 million over five years. He had $10,000 in his bank account at the time.