DeepSummary
In this podcast episode, Brad Jacobs, the billionaire and serial entrepreneur, is interviewed about his new company QXO and his plans to consolidate the building supply distribution industry. Jacobs has raised $4.5 billion from investors for QXO and is aiming to create a $50 billion company over the next decade by acquiring and integrating companies in the fragmented building products market.
Jacobs outlines his playbook for creating successful companies, which involves hiring talented and honest people, setting bold goals, being decisive, aggressively pursuing acquisitions, thoroughly integrating acquired businesses, and continuously improving operations. He emphasizes the importance of paying fair prices for acquisitions to create shareholder value.
The conversation also covers Jacobs' outlook on the economy, the impact of higher interest rates on deals, the role of technology and AI in improving supply chain efficiency, and his approach to managing competition for acquisitions while avoiding overpaying. Jacobs stresses the need for resilient global supply chains and adapting to changing geopolitical risks.
Key Episodes Takeaways
- Brad Jacobs, a billionaire serial entrepreneur, has launched a new company called QXO to consolidate the fragmented building supply distribution industry.
- Jacobs has raised $4.5 billion from investors and aims to create a $50 billion company in the building products market over the next decade.
- Jacobs' playbook for success involves hiring talented and collaborative people, setting bold goals, aggressively pursuing acquisitions, and thoroughly integrating acquired businesses.
- He emphasizes the importance of paying fair prices for acquisitions to create shareholder value and continuously improving operations.
- Jacobs plans to leverage technology and AI to improve supply chain efficiency and resilience in the building products industry.
- He is focused on adapting to changing geopolitical risks and diversifying supply chains away from overdependence on China.
- Jacobs is open to acquisitions across various sectors of the building products market, including residential, commercial, and infrastructure.
- He believes the industry has room for improvement in customer service, inventory management, and technology adoption.
Top Episodes Quotes
- “So the playbook is pretty straightforward. It's first of all, talented, making sure the people in the company are amazing, are honest or hard working or collaborative, or really special people that they can get along with each other.“ by Brad Jacobs
- “If you can get fantastic people, smart, honest, hardworking people who get along with each other and get the right culture of how you interact with each other, you can accomplish enormous things. You can dream big and actually achieve it.“ by Brad Jacobs
- “That's the cardinal sin in M and A is overpaying. That's the IC and ROIC. And then integrating those businesses very thoroughly. So we have one company, one brand that has a power in the marketplace.“ by Brad Jacobs
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Episode Information
Odd Lots
Bloomberg
7/2/24
Brad Jacobs has made a career of starting, consolidating, and growing whole industries. He did a trucking company. He did a warehouse company. He has a freight brokerage. He created an equipment rental company. His new venture, dubbed QXO, aims to reshape the big and sprawling market for building supplies, which can encompass residential, infrastructure and commercial real estate. And he has $4.5 billion of his and his investors' money to go out and buy and build. In this special episode of the Odd Lots podcast, recorded live at the Bloomberg Invest conference in New York City, he talks about where he is in the new process, and what he plans to do once he's made his acquisitions.
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