While tech founders burn cash chasing users, Bradley Jacobs made a fortune renting construction equipment. One rental yard at a time. For 20 years.

The model: contractors need equipment. Buying an excavator costs $500K. Renting costs $800/day. You own the assets. They rent repeatedly. Recurring revenue on physical iron.

1997. Bradley Jacobs has already built and sold two companies (oil logistics, waste). Looking for his next rollup, he analyzes equipment rental: 8,000+ independent yards, no player over 10% market share, massive fragmentation.

A typical yard runs $5M in revenue on $15M in equipment at 25-30% EBITDA. Consolidate and everything improves: national accounts sign one vendor, equipment moves between locations to maximize rental days, fleet purchases get 20-30% discounts at volume. EBITDA margin jumps to 40-50%.

1997: Bradley's team acquires U.S. Rentals, a small public company with 25 yards across 5 states.

The strategy: use it as the acquisition vehicle and roll up the entire industry. After the first year of buying 15 more yards: revenue $285M (+90%), EBITDA $99.75M (35% margin, +166%), fleet value $750M.

Most people would've stopped at 100 locations. Bradley asked: what if we bought 1,950?

Phase 1 (1997-2007): 850 independent yards acquired, IPO in 1997, national account strategy. $4.2B revenue at 32% margins.

Phase 2 (2008-2015): 420 distressed yards bought cheap during the financial crisis, plus RSC (the #2 competitor) for $4.2B in 2012. $5.8B revenue at 38%.

Phase 3 (2015-2020): 480 more yards, specialty equipment added (aerial platforms, earthmoving). $9.3B revenue at 42%.

Phase 4 (2020-2026): 200 more locations, telematics and online booking. $14B revenue at 45%.

Today: 1,950+ locations, $18.5B fleet value, 700,000+ equipment units, 23,000+ employees.

Location: major metro or construction-heavy region, $2M-$100M revenue, top-3 local market share preferred, owned yard or 10+ year lease.

Fleet: $5M-$300M in equipment, average age under 6 years, well-maintained.

Financials: 20%+ EBITDA improvable to 35%+, 65%+ utilization, no customer over 25%, 70%+ repeat customer rate.

Price: small yards 3-4x EBITDA, mid-size 4-6x, large regional 6-8x, with equipment separately valued at 50-70% of replacement cost. URI evaluates 200+ deals a year and buys 20-40.

Weeks 1-4: meet top 50 customers, lock in rental agreements, introduce the national network and larger fleet.

Months 1-3: assess utilization, transfer underused equipment to high-demand markets, sell aged units, move rental rates to market (often +10-15%).

Months 3-6: implement ERP, telematics, and maintenance systems; centralize purchasing of parts, fuel, and insurance; share back-office functions.

Months 6-18: cross-sell the full equipment catalog, target Fortune 500 national accounts, add specialty lines, expand the yard footprint where possible.

Average improvement in 24 months: revenue per location +25-35%, fleet utilization +10-15 points, EBITDA margin +12-18 points, customer base +20%.

Before: an independent yard with $8M revenue on a $24M fleet at 65% utilization produces $2.4M EBITDA (30%) and sells for $12M at 5x.

After integration: revenue $10.4M (+30% from fleet optimization and national accounts), utilization 78%, EBITDA $4.68M (45% margin, +95%).

The platform: $6.3B of EBITDA generated annually on an $18.5B asset base is a 34% return on assets. Value creation = fleet optimization + purchasing power + national accounts. Bradley's totals: roughly $8B invested in acquisitions over 25 years, $50B+ in cumulative EBITDA generated, and a $15.3B market cap today.

There are 3,500+ rental yards in the US. URI, Sunbelt, and Herc own 45%. 55% remain independent, 1,925 yards, average owner age 62, with 800+ actively marketed.

Why now: the $1.2T infrastructure bill is driving an equipment demand surge, 78% of contractors now prefer renting over owning, new machines cost $300K-$500K+, independents lack telematics and online booking, and 68% of owners have no exit plan.

Adjacent plays: aerial work platforms and power generation (5-8x EBITDA asking), party and event rental (4-6x), and tool/homeowner rental (3-5x).

Path 1: Chase asset-light software. Burn cash. Fight for users. Accept negative cash flow (90% fail).

Path 2: Get direct access to rental yards for sale. Buy cash-generating assets. Collect 40% margins. Exit at 10-15x EBITDA.

The yards are there. The equipment is real. The customers are waiting. Our average buyer closes their first rental yard acquisition in 6-9 months.

On this call, we'll identify rental markets with strong construction activity, show you yards with $10M-$50M in equipment value, and map out your path to building a platform worth 10-15x EBITDA.

This isn't for browsers. This is for buyers.

Stop chasing asset-light. Start owning equipment.

Thursday, August 20, 2026

United Rentals' average acquisition closing time: 90-120 days (asset-heavy deals require equipment appraisals). They've done 1,950 deals over 25 years. Our buyers are following similar timelines. The yards are there. The equipment is appraised. The cash flow is proven. The question is whether you'll take action this week.