Thread by @TheIcahnist

From College Dropout to $12 BILLION Empire

Brad Jacobs has founded 7 billion-dollar companies.

He turned $63M into $12B using M&A.

Here's how he did it: 🧵

In 2011, Jacobs invested $63M to acquire a small freight brokerage.

Instead of scaling organically, he bought his way to dominance:

✅ 17 acquisitions in 4 years
✅ $7B+ deployed in M&A
✅ Built a full-stack logistics powerhouse

The stock went from $15 to $102—a 38% annual return.

The Power of Scalability

Jacobs follows a clear formula:

• Large TAM (Total Addressable Market)
• Highly fragmented industry
• Clear path to economies of scale
• Recurring revenue & pricing power

In short: Buy small, integrate fast, create a giant.

Why Logistics?

✅ Massive TAM – Global logistics is a $3 trillion market
✅ Highly Fragmented – Thousands of inefficient players
✅ Accretive Acquisitions – Buy at 6-9x EBITDA, trade at 12-15x

XPO became a one-stop supply chain powerhouse.

M&A as a Growth Engine

Jacobs views M&A as the fastest way to build dominant businesses.

• Buy at a lower multiple than the parent company trades at

• Immediately integrate: one CRM, one ERP, one dashboard

• Cut costs, improve operations, cross-sell services
Speed is his competitive advantage.

He Avoids High-Multiple Sectors

He doesn’t chase overpriced industries.

• Won’t touch 15-20x EBITDA deals
• Prefers 7-9x EBITDA industrial businesses
• Uses tech aggressively—but doesn’t buy tech companies

High-multiple industries = zero room for error.

A $3 Billion Risk That Paid Off

XPO’s most controversial move:

In 2015, Jacobs bought Con-way (a U.S. trucking giant) for $3B.

This doubled XPO’s trucking capacity overnight. Critics thought asset-heavy trucking didn’t fit XPO’s asset-light model.

What they missed:

✅ Acquired Menlo Logistics—a high-margin contract logistics business

✅ Created a hybrid trucking-brokerage model

✅ Gained pricing power in a fragmented LTL market

XPO’s Real Advantage: Technology

XPO is more than trucks & warehouses.

Jacobs invested $450M+ annually in automation to build a tech-first logistics firm:

💡 AI-powered pricing algorithms – Dynamic freight pricing
📲 Drive XPO & Ship XPO apps – Uber-like freight matching
🤖 Automated warehouses – AI-driven sorting & robotics

Result: Higher margins & more operational efficiency

The Most Overlooked Factor in M&A

Jacobs never buys a company if he doesn’t like the seller.

• A company reflects its leader’s ethics & culture
• Hidden liabilities & dysfunction come from the top
• Trust = a smooth transition post-acquisition

If a deal feels wrong, it usually is.

Three Stages of Seller Insanity

Jacobs says there are 3 times people go temporarily insane:

1. When they get fired
2. During a divorce
3. When they sell their company

Selling a business is deeply personal.

The best buyers understand seller psychology & manage emotions.

The Secret of Billion-Dollar Buybacks

2018: A short seller attack crushed XPO’s stock.
Most CEOs would panic.

Jacobs?
He bought back $2 billion of stock at rock-bottom prices.

Two years later, it was worth $6 billion.

That’s how great capital allocators think.

The Art of Deal Speed

Most buyers take months. Jacobs moves in 2 weeks.

He skips:
❌ Unnecessary consultants
❌ Endless back-and-forth
❌ Overanalyzing tiny details

Instead, he focuses on:
✅ Meeting key people
✅ Understanding unit economics
✅ Closing fast before others react

Think Big, Move Fast

Jacobs’s philosophy:

- Have a clear vision
- Hire A+ talent
- Scale aggressively

“Life is short. You have 5,000 great days left. Every day should be meaningful.”

Why Most CEOs Underperform

Jacobs believes most CEOs:
• Move too slowly
• Fear bold bets
• Get lost in bureaucracy

His solution:
• Prioritize speed over perfection
• Create a culture of execution
• Focus 100% on ROIC (Return on Invested Capital)

If you enjoyed this, follow me @TheIcahnist

I break down investors strategies weekly.

🔁 RT to help others learn from Jacobs.