The M&A King Wheeling and Dealing Without Bankers

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July 29 (Bloomberg) -- Brad Jacobs, CEO of XPO Logistics, discusses how he became an M&A master with Bloomberg's Leslie Picker and Cory Johnson on "Taking Stock." (Source: Bloomberg)

This was just out 30 minutes ago.

We were put in touch by mutual context and we were told that this guy, he has done more deals than many bankers on wall street.

So what an attractive headline that is.

500 deals by a high school dropout.

I get credit for all of these deals, but i had a big team.

It was a large team of people, and they give them credit.

We were talking about the word rollup, what you do not like it.

It is fine, but it reminds me of deodorant.

[laughter] what we have done in my previous companies and what we're doing today is a balanced strategy of collectively buying great companies with great leaders.

Today we announced two company's with greatly leaders.

Then we grow them, working together with those great people to grow them.

That organic growth is part of the story.

Today we announce 49% organic growth in the company.

How do you define organic growth?

Taking out acquisitions, just as this is that you owned a year ago.

That is the right way to do it.

When you -- why not the bankers?

He does not use the bankers, he uses them in financing but not m&a advice.

He has people on staff who used to be bankers, so it is all done in-house.

He is sitting down at the negotiating table and getting a sense of what they want to do.

He knows the type of people that he can best integrate into his business, and that is working in his favor.

The share price of his compani es that have been part of this strategy have done incredibly well.

I love bankers.

We use bankers all the time for financing capital and for debt and equity.

Great you and up saving money by doing the work in-house?

It is not about saving money, it is that we have our own in-house expertise.

They know the industry very well.

Because you know you industry so welcome we know who the real players are and who are the pretenders?

Absolutely.

When i got into this business in 2011 we put together a team and said let's take 1000 companies that are the best targets.

We met all those people, and would talk to them, and we where at it down to 100 targets.

Those are our competition.

Now we're to figure out who to buy.

Do you wait for your moment, or is everyone on the shopping list in contact with you?

We keep the relationship, and some day the stars may line up.

You look for particular industries which i found interesting.

You have no key points that you look for, what are they?

The people.

First and foremost, i have to like the team.

Everyone says that, how do you judge that?

It is objective.

You meet someone can be spent time with them, you get along you trust them to be respect them as mutual chemistry.

It's a good sign.

You want to make sure that their position in the market is very strong.

Revise -- we buy companies

This text has been automatically generated. It may not be 100% accurate.

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