Anyone who’s followed Brad Jacobs’ career knows the serial consolidator and billionaire business builder isn't afraid to take big swings.
In June 2024, Jacobs Private Equity did a reverse merger, investing $900 million in SilverSun Technologies Inc., along with $100 million from other co-investors. Jacobs immediately renamed the company QXO Inc. (QXO), and Jacobs became chairman and CEO.
Fast forward 29 months. QXO has made three acquisitions worth about $30 billion, using a varied combination of cash and stock. To date, the results have been less than stellar; as of Tuesday morning, its enterprise value was $21.6 billion.
Investors who’ve bet on Jacobs over the years and been patient have done well.
Jacobs has founded eight billion-dollar or multibillion-dollar companies, including six publicly traded companies: United Waste Systems, now owned by Waste Management (WM); United Rentals (URI); XPO (XPO); GXO Logistics (GXO); RXO (RXO); and QXO.
Yesterday, Jacobs Private Equity announced a similar arrangement to its bet on QXO, investing $900 million in CKX Lands Inc. (CKX), a Louisiana-based landowner, with an additional $100 million from HRTG Partners, one of its QXO co-investors.
At first, I thought Jacobs wanted to roll up large U.S. landowners. I recently wrote about Maui Land & Pineapple (MLP), a Maui landowner that also ran a pineapple processing business until 2009.
It turns out Jacobs is undecided.
He’s looking to do what he’s always done: consolidate an industry that’s growing, but fragmented, and can’t be disrupted by AI.
CKX Lands jumped 58% yesterday and was up nearly 6% in Tuesday morning trading before losing momentum and falling below $16.
Should investors jump on the bandwagon despite missing out on the big gains? Maybe.
Here’s my two cents.
The Pros of Doing a Reverse Merger
Through the first nine months of 2026, according to PwC, 83 traditional IPOs have been completed, raising $120.2 billion, up significantly from the same period a year ago.
At the same time, 153 SPAC (Special Purpose Acquisition Company) IPOs raised $27.0 billion, the highest number since 2021.
Why not do one of these?
Traditional IPOs are time-consuming. I doubt Jacobs has time to run around the country promoting his next great plan. Besides, they’re also expensive, and generally for businesses with scale. CKX Lands isn’t that. Yet.
As for SPACs, demand has resurged from investors who like throwing their money behind experienced sponsors, and it’s also a safe way to park cash in difficult markets.
The problem is that de-SPAC transactions, where the SPAC merges with an operating business, are falling. There were 27 in the first nine months of 2026, down from 35 a year earlier.
You would think Jacobs’ reputation would make raising a billion dollars through a SPAC a slam dunk; it probably would. However, why put the potential de-SPAC transaction to a vote when you can put up your own cash and do a reverse merger with a small public company in a fraction of the time?
The process has worked before. Why break what isn’t broken?
What Is The Target Industry?
That’s the million-dollar question. Right now, Jacobs either doesn’t know for sure or is keeping it secret until he finds a platform company to acquire and then consolidate around.
Just as individuals are pivoting to jobs in the trades like plumbing, electrical, and carpentry, investors are focused on shielding themselves from a direct AI hit that could make their industry obsolete.
Just imagine how horse-and-buggy makers felt around 1903 when Henry Ford produced the Model A and then the Model T five years later.
Beyond finding a growing, fragmented industry, Jacobs wants a long runway for his roll-up to play out. He’s probably focused on industries that can use AI to their benefit, but not to replace human contributions.
That’s why he’s growing QXO. The industry can use technology upgrades such as AI to improve efficiency without removing the human element of construction.
One industry I think would be a good target is restoration. My next-door neighbour works for First Onsite Property Restoration here in Halifax. He works major hours when a job has to be completed in short order. Until robots can do this work, which I doubt will be soon, the industry has plenty of work to go around.
Toronto-based FirstService Corp. (FSV) owns First Onsite and several other residential property services businesses, including Paul Davis Restoration.
In Canada, FirstOnsite may have 10-15% of the estimated $3 billion restoration market, focusing on commercial and insurance-related work, to help ensure payment.
In the U.S., the market is estimated at approximately $56 billion annually, with about 90% highly fragmented.
In Jacobs' quest to grow QXO, scaling an adjacent industry that would use many of the building products it distributes would help make both industries more efficient at scale.
Use your imagination. I’m sure you can come up with other potential fragmented industries.
Should You Buy CKX Stock at $16?
The share price is moving around quite a bit as I write this, so I’m dealing with a moving target. Let’s assume it closes Tuesday trading at $16.
CKX Lands, according to S&P Global Market Intelligence, has 2.1 million shares outstanding, for a $33.6 million market cap and an enterprise value of $18.4 million. Add the $1 billion investment at $16 a share, and shares outstanding jump nearly 3,000% to 64.6 million.
CKX's highest annual revenue since 1993 was $3.34 million in 2008. That year, it had operating income of $2.63 million, also the highest in the past 32 years. In 2025, both revenue and operating profits were significantly lower.
It will take time for Jacobs to identify the industry, raise additional funds for acquisitions, and then execute some transactions.
If QXO is any guide, Jacobs announced in December 2023 that it would focus on building products’ distribution and made its first acquisition (Beacon Roofing Supply Inc.) 16 months later in April 2025; it reported its first full year of annual revenue in February with its 2025 10-K.
So, let’s assume it could take three years to go from yesterday’s news to a point where you can actually analyze a full year of revenue. That’s not easy: waiting 36 months on a hope and a dream.
But, if you’re patient, what you’re effectively getting is a Brad Jacobs-sponsored SPAC without giving away a generous amount of sponsor shares for virtually no investment.
Like with QXO, Jacobs has put his money where his mouth is. As always, I’ll be interested to see what he comes up with.
If it were me, I might consider a small investment now, while keeping significant dry powder in case the share price drops in the next 6-12 months.
As with most traditional IPOs, you can usually get a better price by patiently waiting. Do that, and you should be fine in 5-10 years.
On the date of publication, Will Ashworth did not directly have a position in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.