Company: QXO-PB
Filing Date: 2025-02-21
Form Type: DFAN14A
Source: 0000950142-25-000485
Chunk: 6

Company: QXO, Inc.
Filing Date: 2025-02-21
Form: DFAN14A
Chunk 6
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 8.1x, illustrative discount rate of 13% and 2026 consensus margins, Beacon would require extraordinary growth to achieve $124.25 on a present value basis: ~17% implied 2024-2026 revenue CAGR,11 four times consensus revenue growth of ~4%;10 and ~21% implied 2024-2026 EBITDA CAGR,11 compared to ~7% consensus EBITDA growth.10 Beacon's fiction: “Beacon’s Board has a firm and demonstrated commitment to acting in the best interests of Beacon and all its shareholders.” Fact: QXO made an offer of $124.25, which is higher than the stock has ever traded and a 37% premium to the undisturbed 90-day VWAP. Still, the company sought to try to prevent QXO from publicizing this offer to shareholders. Beacon's Board has ignored shareholders' interests by refusing to meet with QXO unless we agreed to a standstill agreement, preventing us from presenting this offer directly to shareholders. Beacon’s entire Board and management team collectively own only 1.3%12 of Beacon's outstanding shares, raising questions about whether the company and Board have the best interests of shareholders in mind. Beacon’s Board and insiders have been sellers of the stock well below $124.25. Beacon’s chairman recently sold 21% of his shares at $94.80 and Beacon’s CEO recently sold 10% of his shares at $97.91, a 24% discount and 21% discount to QXO’s $124.25 per share offer price, respectively.5,6 Beacon's fiction: “QXO’s offer is not compelling and is an opportunistic attempt to acquire Beacon at a discount, especially when considered against recent industry deals, like Home Depot buying SRS Distribution.” Fact: Our offer is a 37% premium to Beacon’s unaffected 90-day VWAP and higher than Beacon’s stock has ever traded. The offer is full and fair—and even fuller and fairer than the day we first conveyed it, because peers have traded off. SRS does not present an accurate "apples-to-apples” comparison: SRS has generated significantly stronger organic growth than Beacon. From 2018-2023, SRS delivered an approximately 30% revenue CAGR, far outpacing Beacon’s 5%.13 Even more impressively, over a very long period of time (2010-2022), SRS’s