Company: QXO-PB
Filing Date: 2025-03-07
Form Type: DFAN14A
Source: 0000950142-25-000649
Chunk: 7

Company: QXO, Inc.
Filing Date: 2025-03-07
Form: DFAN14A
Chunk 7
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 to Acquire Beacon Roofing Supply is Highly Compelling and at a Significant Premium to Beacon’s Unaffected Share Price

In evaluating QXO’s offer, Beacon conveniently ignores
that its share price reflects our acquisition interest following the Wall Street Journal’s November 18, 2024 report. That day, Beacon’s
stock rose 9.9%, compared to a 0.4% increase in the S&P 500. Yet, Beacon compares QXO’s offer to share price metrics as of January
14, 2025—a misleading approach that distorts expectations of Beacon’s standalone value.

A more appropriate analysis shows that QXO’s offer represents:

| · | A 37% premium to Beacon’s 90-day unaffected VWAP of $91.02 per share as of November 15, 2024; |

| · | A 26% premium to Beacon’s unaffected spot price of $98.75 per share as of November 15, 2024; and |

| · | A higher price than Beacon’s stock has ever traded. |

2. Data Indicates that Beacon Will Miss its Margin Targets. The Board’s Claim of Strong Performance is Flawed

From 2019 through LTM September 2024, Beacon’s 7.7% revenue
CAGR is the lowest of its peer group and well below the peer median of 12.1%.

... Consensus analysts’ estimates indicate that Beacon
will:

| · | Miss its 2025 Gross Margin target by 130 basis points; |

| · | Miss its 2025 EBITDA Margin target by 114 basis points; and |

| · | Deliver EBITDA margins 20bps lower in 2025 than when the “Ambition 2025” plan was introduced. |

Furthermore, Beacon’s claims of superior stock performance
are easily debunked. Over the past five years, Beacon’s total shareholder return has trailed its Building Products Proxy Peers by
86% and trailed those peers by 140% since CEO Julian Francis took over as CEO in August 2019.

3. QXO’s Offer Represents a 3.0x Premium to Beacon’s Historical Multiple

Since Beacon has not closed the valuation multiple gap despite
implementing “Ambition 2025,” reporting supposedly strong results and stock markets nearing all-time highs, we urge shareholders
to decide if the current management and Board are the right team to create value for shareholders. QXO’s proposal provides a 3.