Back to #408 How to Make a Few MORE Billion Dollars: Brad Jacobs, with David Senra.
Why Does Brad Jacobs Integrate Before a Deal Closes?
David Senra reads Brad Jacobs's reason for integrating before a deal closes: most acquisitions do not create shareholder value unless the buyer improves the company, and waiting until close is too late to start. Jacobs stakes his reputation on turning separate businesses into one operation. If he only bought companies and skipped the integration, he would be left with old brands, separate technology, and teams that do not talk to each other. Jacobs negotiates unrestricted access, including to employees, from the moment the agreement is signed. That condition is not common in deals.
He asks what is working and what could work better, and he starts with people on the front line who have often never been asked. He holds town halls, visits field operations, and interviews the top executives in person. He would rather rip the band-aid off than let the old structure linger. When QXO closed the Beacon deal, the company sent a Zoom town hall to everyone with a Beacon email within minutes of the press release. About 3,600 people, most of those invited, showed up on three hours' notice. Jacobs gave a short introduction and opened the floor. New employees get a chance to say what is on their minds, and the people who come with the company are full of untapped ideas.