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Simeon Research's avatar

Very very interesting pitch thank you

Lost In The World's avatar

Should we assume a lot more dilution for QXO? Hitting $50B revenue in a decade will probably require both stock and cash for M&A deals.

Kairos Research's avatar

Yes. I was actually thinking about this last night, although I accounted for the massive front loaded equity financing already embedded, there will likely be additional equity financing. I updated my post with an additional dilution section. The way I'm thinking about it, and correct me if Im wrong here, is that QXO will need to do the equivalent of 4 more "Beacon sized" acquisitions to reach 50 billion. (Not literally 4 large deal, just the equivlent of in terms of EV.) So, assuming 40% equity financing, this implies something like an additional 300 million shares, at $35-$45 per share. or 1475 total FD shares.