5-10x Earnings Acquisition Formula

Brad Jacobs has built multiple billion-dollar companies through systematic acquisitions and scaling. Here's his proven approach.

Core Strategy Elements

• Targets fragmented industries with small, profitable businesses lacking capital to scale
• Focuses on industries that are "undisruptible" and can last 100+ years
• Raises tens of millions in capital to fund acquisitions
• Buys companies at 5-10x earnings valuations
• Implements systematic improvements to scale rapidly

Acquisition and Growth Formula

• Initial Target Criteria:

  • Companies with ~$30M in revenue
  • Small but profitable operations
  • Limited access to growth capital
  • Operating in fragmented markets

• Post-Acquisition Playbook:

  • Add 30-40 key personnel immediately
  • Goal to double revenue within defined timeframe
  • Implement strong IT systems for integration
  • Focus on operational optimization

Sales Team Structure

• Hiring Profile:

  • Low base salary ($25-35k)
  • High commission potential
  • Must score high on "need to win" metrics
  • Must score low on "need to be liked" metrics

• Sales Approach:

  • Requires 99 calls per day
  • Expect 1-2 deals from those calls
  • Top performers can build $1M+ book after first year
  • Heavy emphasis on performance-based compensation

Integration Strategy

• Acquire powerful software systems early
• Use technology to integrate multiple acquisitions
• Focus on standardizing operations across acquired companies
• Build scalable infrastructure to support rapid growth

Results Pattern

• Companies typically reach billions in revenue
• Multiple successful exits above $1B
• Pattern repeated across various industries:
  • Oil/energy
  • Waste management
  • Logistics/transportation