Company: QXO-PB
Filing Date: 2025-03-14
Form Type: DFAN14A
Source: 0000950142-25-000746
Chunk: 5

Company: QXO, Inc.
Filing Date: 2025-03-14
Form: DFAN14A
Chunk 5
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 that QXO would invest heavily in Beacon Roofing Supply’s tech
infrastructure from the ground up. The company plans to completely modernize Beacon’s technology stack. That would start with a
deep internal audit to understand existing capabilities and gaps.

QXO would then gather feedback from employees to create a comprehensive
wish list of technological improvements. Once it collects the input, it will prioritize projects based on:

| § | Return on investment (ROI) |

| § | Customer impact |

| § | Employee efficiency |

| § | Business disruption |

Jacobs envisions several high-impact technology upgrades. Dynamic pricing
would allow Beacon to respond more effectively to market conditions, boosting margins and competitiveness. AI-driven demand forecasting
would improve inventory management and reduce waste. Meanwhile, warehouse automation and an advanced Warehouse Management System (WMS)
would drive greater operational efficiency.

QXO also plans to implement a technology-enabled sales force to improve
customer interactions and close rates. Fleet optimization would enhance delivery times and reduce costs, and a stronger ecommerce platform
would improve customer experience and increase market share.

“We’d agree on a big to-do list and make it happen in a methodical
way,” Jacobs said. “We’re confident that we can double Beacon’s EBITDA over the next five years and drive significant
value creation.”

Impact on the industry

The building products industry is a natural fit for QXO’s growth
model. The QXO spokesman explained that the market is large — worth $800 billion. It’s also highly fragmented, he said, with
20,000 players globally. That includes 7,000 in North America and 13,000 in Europe. And that fragmentation creates enormous opportunity
for consolidation. Jacobs sees QXO as well-positioned to drive that process.

“The building products industry fits the same old playbook we’ve
used in other industries,” Jacobs said. “It’s a large, growing market where bigger is better. There are plenty of accretive
M&A opportunities, and technology can unlock significant efficiencies and margin expansion. We’ve done this before in waste
management, equipment rental, transportation, and logistics. We know how to apply tech to make a business more efficient — and that’s
exactly what we’ll do with Beacon.”

QXO’s acquisition strategy revolves around scaling Beacon Roofing
Supply through a combination of technology-driven efficiencies, operational improvements, and smart acquisitions. The company’s
goal is to replicate the success it has achieved in other sectors by combining strong