Navigating Mergers and Acquisitions

This chapter explores the intricacies of scalability as a critical factor in identifying investment opportunities through mergers and acquisitions. It emphasizes the importance of strategic industry selection, rapid integration, and the psychological dynamics between buyers and sellers. Through shared experiences and real-world examples, the discussion highlights the necessity of adaptability and strong relationship-building to succeed in the M&A landscape.

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My guest today is Brad Jacobs. Brad’s resumé is remarkable. He has founded seven companies, all of which are billion-dollar or multibillion-dollar businesses. He has done 500 M&A transactions and raised $30 billion dollars of debt and equity capital. Currently, he is the Executive Chairman of XPO, a commercial trucking company that he started in 2011 and has grown into one of the largest logistics businesses in the world. He has also written a book that will be out in January, titled “How to Make a Few Billion Dollars”. Brad’s energy is infectious and our conversation unpacks his strategies for M&A, his propensity for speed, and methods for earning team buy-in. Please enjoy my conversation with Brad Jacobs.

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Past guests include Tobi Lutke, Kevin Systrom, Mike Krieger, John Collison, Kat Cole, Marc Andreessen, Matthew Ball, Bill Gurley, Anu Hariharan, Ben Thompson, and many more.

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Show Notes

(00:02:11) - (First question) - Identifying key factors in a market before investing

(00:05:07) - Gleaning insights from early acquisition experiences

(00:08:43) - Delving into the seller's mindset during a business sale

(00:12:51) - Weighing pre-built against organic growth strategies in acquisitions

(00:17:20) - Defining the elements of an ideal business

(00:22:49) - Engaging constructively with Wall Street

(00:24:36) - Discussing the substantial buyback of XPO shares

(00:28:16) - Ambition as a recurring theme in entrepreneurial success

(00:30:17) - Emphasizing the need to facilitate team agility

(00:32:35) - Highlighting the joys of post-acquisition integration

(00:36:09) - Drawing lessons from Ludwig Jesselson's principles