BuildDirect.com: Questions to Shawn Wilson | Value Bridge

Archieve - Everything Shawn Wilson Said

Sep 10, 2025

Business Summary

BuildDirect operates an omnichannel flooring platform, combining e-commerce demand generation with a growing network of Pro Centers focused on professional contractors. More than 95% of sales are U.S.-based, with nine Pro Centers today, including six in Michigan, one in Richmond (Canada), one in California, and one in Orlando. The company sources directly from global manufacturers, avoiding distributors, which supports margin expansion and supply chain resilience. Pro Centers typically generate $6–8 million annually and require about $750,000 in inventory to launch. Recent debt restructuring reduced obligations and interest rates, while a C$9.5 million revolving facility from RBC and EDC support long-term expansion. Management is targeting 50–75 Pro Centers across North America, balancing build-versus-buy economics with strict payback discipline.

Catalysts & Milestones

2023 - Acquired FloorSource and Superb Flooring, delivering revenue growth and synergies

2023 - Paid down $3.2 million debt and refinanced $7.5 million, lowering interest rate from 15% to 12%

2023 - Built new Pro Center in Richmond, BC, expanding physical footprint

2024 - Opened Brighton Pro Center, adding new product categories and customer reach

2024 - Secured Tier 1 RBC credit facility with C$9.5 million capacity to finance growth

2024 - Expanded to nine Pro Centers, including Santa Fe Springs and Orlando

2025 - Management loans increased insider equity ownership by $775,000, aligning incentives with shareholders

2025 - Announced goal to scale from nine to 75 Pro Centers across North America

2025 - Pursuing U.S. listing to broaden investor access after stabilizing operations and removing going-concern qualification

Investment Highlights

Nine Pro Centers today, targeting 50–75 locations across North America.
Typical Pro Center requires $750,000 inventory and generates $6–8 million annually.
Refinanced $7.5 million debt, lowering interest rate from 15% to 12%.
Secured C$9.5 million RBC revolving facility to fund expansion.
Insider-backed loans added $775,000 equity ownership alignment with management.

Future Growth Drivers

Scaling Pro Center network toward 50–75 locations for national coverage.
Leveraging direct-to-manufacturer sourcing to bypass distributors and strengthen margins.
Expanding into adjacent categories such as cabinets, countertops, and trim.
Marketing-led e-commerce growth seeding new markets for future Pro Centers.
U.S. listing to improve access to institutional investors and sector-focused funds.

Risk Factors

Expansion reliant on heavy inventory funding, typically $750,000 per new Pro Center.
Tariff volatility could pressure margins despite multi-country sourcing strategy.
Integration risk from frequent bolt-on acquisitions with varying local cultures.
Flooring demand tied to discretionary renovation cycles despite essential category dynamics.
Debt-funded growth raises refinancing exposure, even with favorable RBC facility.

Capital Allocation

12/04/2023 How have BuildDirect's acquisitions contributed to growth?

We acquired FloorSource and Superb Flooring, both of which have delivered increased revenues. FloorSource in particular has shown dramatic profitability improvements post-acquisition, benefiting from our direct sourcing model.

Beyond financials, the acquisitions created synergies across the network, such as combined shipping models, sourcing strategies, and installation services. These businesses deepened our pro customer relationships, reinforcing our company-wide focus and vision.

29/08/2023 With limited cash on hand and high interest rates, how will you pursue M&A?

Our acquisition strategy does not rely on paying 100% of the cash upfront. Instead, we distribute payments over time and use the earnings of acquired businesses to fund them.

The industry is highly fragmented, and our operational expertise positions us to work well in vendor take back structures. This allows us to pursue acquisitions without being reckless, focusing on shareholder value through the right deals. By leveraging synergies in import logistics, e commerce, and brick and mortar, we can create substantial opportunities quickly, as we have demonstrated in the past.

21/11/2023 Can you elaborate on debt repayment and refinancing activities?

Year to date, we paid down $3.2 million of debt and deferred consideration, reducing liabilities and obligations. In addition, we refinanced $7.5 million of debt, extending maturities from 2023 out to 2025 and 2026.

As part of that refinancing, we also lowered our interest rate. We were previously paying 15% but, due to improved profitability and lower perceived risk, we successfully reduced it to 12%. In short, we paid down debt, extended maturities, and lowered interest expense.

21/11/2023 Can you expand on Superb Flooring and Design’s deferred consideration payment?

As part of our acquisition strategy, a portion of consideration is deferred. While there is limited detail we can share, we do expect liabilities to drop in Q4 by roughly $1.5 million related to a reduction in deferred consideration.

21/11/2023 What are the company’s future acquisition plans?

If you zoom out, our model combines an e-commerce business supported by Pro Centers. We have acquired five Pro Centers and built one in Richmond, BC. We continue to scout additional opportunities.

In terms of M&A, we are interested in layering on more Pro Centers across the country to drive local sales and enhance e-commerce competitiveness. We pursue both build and buy strategies, with the same intent: expand Pro Centers that reinforce our e-commerce business.

29/04/2024 Provide a general update on your acquisition strategy and pipeline.

We have an active pipeline we are working through and are specifically seeking partners with a pro focus model and real synergies with our direct import strategy. Many businesses, even larger ones in North America, buy from mid-market distribution to sell to professional customers. When we can acquire in those cases, there are meaningful procurement synergies because we can bypass mid-market distribution. We are also finding opportunities on the marketing side. We are actively reviewing these companies, their teams, processes, and customers, and we are optimistic about making progress.

28/08/2024 Do you have an update on the company's acquisition pipeline?

We operate under a build and buy model, and over the past year we focused on refining our buy-side pipeline. We are targeting partners with inventory-focused businesses that serve professional customers, along with teams that complement our own. The pipeline is healthy, and for us, bringing on board the right people and facilities for long-term scalability has been a priority.

So I would say stay tuned, as we continue to execute in that area.

26/11/2024 Who is leading the M&A team besides the executives on this call?

On the M&A front, the executives, myself, Kerry, and Jay Allen, bring deep industry experience and also work with an advisory team. We collaborate to evaluate opportunities with a strong focus on working capital, emphasizing quality working capital over intangibles when assessing businesses.

26/11/2024 How does the company plan to finance M&A and pro center growth initiatives?

It depends on the size of the opportunity. Smaller tuck-in acquisitions can be funded through operating cash flow, often requiring only working capital with no incremental debt or equity. For larger, more strategic initiatives, we would use a prudent mix of debt and equity over time, while aiming to minimize dilution. We also have access to external debt if required, and our insiders remain supportive of funding. Our approach will balance growth with financial discipline.

07/03/2025 What are the pros and cons of building versus buying for growth?

Our e-commerce business is scaling well after the reset, and the main growth driver is expanding Pro Centers. We have eight today and aim for 50 to 75 across North America. Growth is both build and buy. On the build side, it is straightforward: hire a team, use existing systems, and invest primarily in inventory, about $750,000 per center. Facilities are inexpensive to prepare for our use, and landlords often provide concessions. The main challenge is the ramp-up period in building a local customer base.

On the buy side, acquisitions can give us immediate access to established customers. We prefer when systems align with ours, but integration is manageable. Inventory is the bigger factor. We buy very well, and it is rare that acquired inventory is purchased as efficiently as ours. When evaluating deals, we trace inventory back to the source, assess the gap, and compare every opportunity against the alternative of building. Nothing we buy is something we couldn’t build ourselves, so the math has to work.

07/03/2025 How do you assess the risk of buying stale inventory in acquisitions?

This is one of the biggest opportunities in the industry and a topic I get excited about. In flooring, product design changes slowly, but companies often rotate assortments faster than customers want. For us, the key factor is not age, but whether inventory is still supported by sampling and marketing programs. A product can be recent but worthless if it was never tied to active sampling, while older stock with strong sampling still has value.

We validate at the SKU level whether inventory is backed by field samples and marketing. Most excess inventory problems stem from discontinued programs, not product quality. Our advantage is e-commerce. We can load or remove SKUs instantly, allowing us to capture value from inventory others see as dead. Distributors and manufacturers frequently call us to help clear such stock, and with 20 years of organic demand generation, we are uniquely positioned to monetize it.

07/03/2025 How does BuildDirect evaluate acquisitions, particularly inventory?

Beyond quality audits, we assess inventory based on market value versus book value. Sometimes this reveals upside, other times the opposite. Since inventory is the core asset in most acquisitions, our team’s evaluation always centers on what it is actually worth in today’s market, not just what the books say.

07/03/2025 What is your view on capital needs, and when might you raise equity?

We want to build something far beyond 10 or 20 percent growth. To do that, we needed a proper financing partner, so we secured a facility with RBC supported by Economic Development Canada. This gives us the ability to focus on long-term growth rather than chasing capital. Insiders also showed real character in supporting the business during leadership turnover instead of taking it private, which gave me confidence from the start.

On equity, I do not like businesses that must constantly raise capital. We focus on operations that fund themselves and maintain strong debt terms. That said, equity can be used creatively for growth if ratios stay disciplined. We can achieve extremely accretive growth without overreaching. As I often say, pigs get fat, hogs get slaughtered. For us, the priority is sustainable operations first, with equity used carefully when it strengthens the business.

07/03/2025 Do you plan to list in the U.S. to broaden your investor base?

Yes. While we remain committed to Canada, most of our operations, team, and customer base are in the U.S. We are already well known within the industry there, so a U.S. listing makes intuitive sense.
Our order of operations was to first stabilize the company, remove the going concern qualification, build the right team, and secure a tier one banking partner. With those milestones achieved, expanding the listing is a natural next step. Being on the TSXV makes it difficult for U.S. investors to buy stock easily. A U.S. listing would open access to a larger investor pool, particularly since many industry participants like to invest in companies within their space.

07/03/2025 Can you walk us through the economics of acquiring mom-and-pop centers and expected IRRs?

A hypothetical example: a Pro Center doing $10 million in revenue with EBITDA around 7.5% and gross margins just under 30%. Such a business may carry $1.25 to $1.5 million in inventory, with AR and AP mostly offsetting. Our starting valuation would likely be in the $1.25 to $1.5 million range, or 10–15%.

During diligence, we quantify procurement synergies at the manufacturer and SKU level, not just broad averages. Post-transaction, raising EBITDA margins to 10–12% is very feasible. We do not rely on small operational synergies like cutting an accountant; the real gains come from procurement. With that, achieving a two-year payback is common, and that is what excites us about these deals.

07/03/2025 Why hasn’t private equity successfully rolled up this space?

It has been tried, but often gone wrong. Many of these businesses sit on large amounts of inventory and own the real estate. For owners, the real payoff is often in the real estate, not the business. Private equity has found more success with low-inventory, high-AR, segment-focused companies, such as those tied to new construction. But those models carry heavy cycle risk.

In our segment, inventory is central, and private equity has no natural outlet for it. By contrast, we do. When PE buys inventory, they often end up buying from groups like us, without a path to extract additional value. That is why we rarely face PE as a counterparty. Instead, time is the main competing factor, and we often benefit when a fallout occurs. This lack of buyers in our space creates significant opportunity for us.

09/04/2025 How will you balance debt reduction with investing in growth initiatives?

The legacy debt largely came from an e-commerce business that underperformed for years and weighed on financials. For me, it was important not to rush into premature solutions but to position the company to grow responsibly out of debt.

The debt is insider-friendly, payment-in-kind, and patient in terms of maturity, which allows us to focus on growth. That flexibility was important when I joined a few years ago. It also reflects how our insiders, including management, have engaged and prioritized the company’s long-term health.

09/04/2025 Do you plan to raise additional capital, and how will you avoid dilution or excess risk?

I am very mindful of both dilution and capital allocation. Internally, our hurdle rates are high. We often say projects should have a path to a one-year payback, a plan for two, and anything longer must be carefully justified. That discipline applies especially to our pro centers, which are heavy on inventory rather than intangibles. Because of that, debt is well suited to fund them, and we already secured a facility that supports this.

Equity must be reserved for situations where it is absolutely accretive, not just in my opinion but in a clear, objective sense. This business is not dependent on R&D breakthroughs or patents. It is a straightforward, highly accretive consolidation play in a fragmented space that our team understands well. Debt will remain the primary funding tool, with equity used sparingly and strategically.

09/04/2025 How do you prioritize capital allocation between organic growth, acquisitions, and operational improvements?

On operational improvements, we have invested very little fresh capital. Most improvements have been cost reductions or efficiency gains. For example, we rely on off-the-shelf software rather than expensive custom systems. We adopted AI early to improve internal efficiency, and our philosophy is to avoid big-ticket “shiny object” investments that may not deliver practical returns.

Capital is prioritized toward growth that drives measurable impact, primarily pro centers and inventory to support them. Acquisitions are evaluated with the same high hurdle standards. The key metric is rapid payback, coupled with sustainability. Operational enhancements are important, but we pursue them only where they clearly strengthen the platform without requiring heavy upfront spending.

09/04/2025 How do you approach capital allocation between building and buying pro centers?

Operational improvements are measured in hours, days, or weeks rather than years. Capital is focused on expanding the pro center footprint. Our preference is to build because we like our brand, systems, inventory profile, and culture. But in this industry, attractive acquisition opportunities often arise, and buying then converting can provide the best of both worlds.

The decision between building or buying comes down to math. Some acquisitions, like the one we recently announced, made financial sense and are not one-offs. Market dynamics and macro factors may strengthen that math even further. For now, our priority is clear: aggressively expand pro centers, with services or other initiatives deprioritized.

09/04/2025 How large is your acquisition pipeline, and should we expect deals in 2025?

The pipeline is large enough that we can pick our opportunities. Our approach remains the same: e-commerce first where it makes sense, followed by buying or building pro centers. We currently have 10 locations and want to reach 75 in a very capital-efficient and accretive way.

There is no shortage of attractive targets, but we are selective, focusing on integration quality and alignment with our model. Investors should expect more deals, whether a single pro center, a cluster of locations, or hybrid build-buy transactions. From our perspective, each milestone should feel straightforward: announcing another pro center that adds scale and strengthens our footprint.

17/04/2025 What is the typical timeline for integrating a new acquisition, and can we expect more acquisitions this year?

Having a strong M&A pipeline has been a focus for us, supported by the right facilities and teams, such as the RBC facility that was established as an important first step. We prefer to acquire businesses with assets rather than intangibles, and we put a lot of emphasis on due diligence. That means getting to know the team, customers, and market because the people are the most important part, they hold the relationships with contractors and pro customers.

When we do an integration, we focus on fit, procurement synergies, and cost efficiency. Typically, once a deal is signed, we move quickly, with around a 60-day process to put in our systems, layer on products, and capture procurement synergies. That involves locking down pricing to lower our costs without pushing prices down unnecessarily in an inelastic market.

17/04/2025 What is the company’s current cash position, and how are you managing liquidity given expansion plans?

As of December 31, we had 2,300,000 of cash on hand and 2,700,000 of working capital, a strong position. We also secured a 9.5 million Canadian revolving credit facility from the Royal Bank, which is a major milestone since a tier one Canadian bank supporting us enhances flexibility significantly. Our growth strategy remains tightly aligned with working capital discipline and expected EBITDA contributions from each new pro center.

We expect to remain cash neutral to positive in 2025 even after covering fixed charges, including interest, principal, and lease payments. Structurally, we are in a much stronger position thanks to cost base improvements and derisking of our capital structure over the past 12 to 18 months. That gives us confidence in funding expansion while maintaining liquidity discipline.

17/04/2025 How will the current tariff situation impact your business? Is it a catalyst for M&A?

Roughly one-third of our revenue is from carpet, mostly made domestically in the Southeast, so unaffected by tariffs. On hard surfaces, we are well positioned because we don’t lock into long-term supply contracts. Instead, we source from multiple countries with backup suppliers, which gives us flexibility and resilience against tariffs, natural disasters, or other disruptions. We don’t expect to lose competitive footing, and in fact, flexibility may improve competitiveness. On the macro side, flooring is discretionary, so we are mindful of consumer cycles, but the core business remains resilient.

On M&A, tariffs could accelerate opportunities. Many small businesses had strong years during COVID and government subsidy programs, but the return to normal has been painful for some. Now, with tariffs adding pressure, companies that rely on distribution and lack direct procurement face higher costs and switching risks. This environment makes consolidation more attractive, and we expect the M&A pipeline to accelerate as a result.

17/04/2025 What is the typical timeline for integrating a new acquisition, and can we expect more acquisitions this year?

17/04/2025 What is the company’s current cash position, and how are you managing liquidity given expansion plans?

17/04/2025 How will the current tariff situation impact your business? Is it a catalyst for M&A?

23/04/2025 What does your M&A pipeline look like?

The tariff environment has made things harder for many businesses, which has actually accelerated our pipeline. I joke that I need a CRM now to track all the deals we’re evaluating. There are a lot of good opportunities, and the deals we announce are exactly the type we get excited about. A typical $10,000,000 deal might involve two locations, and that’s how it tends to scale.

There are outliers, like one location doing large commercial projects with about $15,000,000 in revenue, but generally the EBITDA is the same since those projects have different economics. Most businesses in this space fall between $5,000,000 and $10,000,000 in volume unless they’re doing something unusual. Often, local logistics drive expansion decisions, like opening a new site across town to reduce traffic hassles for pros.

23/04/2025 Who scouts acquisitions, and how strong is your pipeline?

It’s a mix of inbound and outbound. I’ve spent 20 years in this industry, and while it’s large, it’s tight-knit. That social capital brings us deals almost weekly. I literally use a CRM now to manage the M&A pipeline because there are so many. We also pursue markets proactively, like Orlando, where we both built and acquired.

We’re known as an acquirer through trade magazines, and there aren’t many like us, so we’re not really competing, we’re creating. The pipeline is healthy. I’m not a big fan of relying heavily on brokers. Deals are best when they align with a clear, purposeful strategy, and we aim to source them with intent rather than opportunism alone.

23/04/2025 Why do you pass on acquisition opportunities?

I get excited if a deal shows a path to a one-year payback and a financial plan for two. Beyond that, it requires deeper conversation. Timing also matters. You can’t get deal heat, rush in, or fall for sunk-cost fallacy. You need to let deals breathe and see how things settle.

We’re acquiring assets, people, and long-term customer relationships, not chasing short-term adrenaline. So, I pass when deals don’t align with that discipline or when payback stretches too far. Meanwhile, we focus on keeping the core company strong and ready to digest acquisitions when the right ones come along, even if that means periods of quiet between bursts of activity.

23/04/2025 How did you finance the Anchor and Yorkshire acquisitions, and what’s your plan for future deals?

We secured a line of credit with RBC, which was a key milestone. We avoided flashy, complex debt deals early on and instead waited until fundamentals were strong enough for a Tier 1 bank partnership. That conservative foundation makes acquisitions easier to finance with confidence.

I’m not a fan of intangibles or Goodwill. We focus on tangible assets and people, which makes debt financing a natural fit. Canada’s EDC is also a fantastic partner for companies like ours, offering tools, services, and underwriting support. Ideally, we continue using that mix of credit and equity in a balanced way. We prefer Tier 1 covenants, and internally we set even tighter standards than banks require. This way, we can run consistently without chasing risk.

23/04/2025 Do you plan to co-list BuildDirect on a US exchange?

The next practical step would be an OTC listing. From there, we would reevaluate, but we’re sensitive to uplifting too early given the costs and fees involved. We also have very tight insider ownership, so maximizing value on the current exchange is unlikely at our scale, but the OTC path is realistic. That said, unlike companies that have left Canada entirely, like Lululemon, we remain listed on the TSXV, and options are still open.

23/04/2025 Who scouts acquisitions, and how strong is your pipeline?

23/04/2025 Why do you pass on acquisition opportunities?

23/04/2025 How did you finance the Anchor and Yorkshire acquisitions, and what’s your plan for future deals?

23/04/2025 Do you plan to co-list BuildDirect on a US exchange?

23/04/2025 How did Ryan Beedie and other major investors become shareholders, and how does that support BuildDirect?

The company has an unusual legacy. In the early days, Jeff Booth in Canada pursued an online model for heavy building materials, while Jeff Bezos in Seattle focused on books. Different trajectories followed, but along BuildDirect’s journey of raising capital in Canada, long-term investors like Ryan Beedie entered.

For me, meeting the insider group and board was critical. They are passionate about the company, believe in the vision, and are highly supportive. That alignment is invaluable. Having strong, long-term shareholders provides confidence and stability, not only for management but also for retail investors evaluating BuildDirect today.

30/05/2025 How do recent management loans align with incentives and shareholder interests?

Simply stated, the management team now owns much more equity, which aligns interests.

From the debt side, Lira loaned BuildDirect 775,000, and those funds were lent to senior executives to purchase shares in a private transaction. The company has a loan payable to Lira and a loan receivable from management, so there is no incremental leverage. Management now owns a larger portion of the company, sharing risk and reward alongside other shareholders.

28/08/2025 Can you provide color on the current M&A pipeline?

We continue to pursue our three tracks. Track two targets smaller distributors and pro-focused locations, many of which are struggling with supply chain issues or pricing volatility. We are seeing significant inbound interest and have marketing programs to surface opportunities. For larger acquisitions, such as adjacent categories like countertops and cabinets, we are being more selective to ensure strategic fit. Overall, the pipeline is healthy and not a limiting factor.

28/08/2025 Should we expect additional equity raises, or will growth be funded through debt and cash flow?

Equity is one of the assets we can use, but our preference is to fund growth with debt tied to inventory and receivables, and with operating cash flow. We are cautious about using equity and view frugality as a strength in structuring deals. At present, we have significant liquidity through our debt facility and existing equity, so there are no immediate plans for new equity raises.

08/09/2025 How do you find one-to-two year payback opportunities and why isn’t private equity pursuing them?

I think about investments that way, whether organic, through acquisition, or restructuring. First it’s about what you are targeting, then how you structure the deal, tail-end earnouts, asset deals, valuation. Often the assets are more attractive within our network than where they sit today. I try not to force a deal to make sense, because that’s like starting a fight and figuring out how to win after you’re already in it. I prefer to see a clear path to victory at the outset, then work through it deliberately.

There are a huge number of opportunities out there. Private equity and large strategics often need bigger transactions to justify the fees and resources, so they typically pursue $50–$100 million revenue deals. Many of the opportunities we pursue are smaller, but numerous, and the real key is executing them efficiently while retaining value inside our network. That’s hard to do if you are structured for only very large deals. This dynamic exists not only in flooring but in many inventory-heavy industries.

08/09/2025 What is BuildDirect’s M&A strategy and why does it work in flooring?

We have three growth tracks. First is organic growth, where we are scaling our e-commerce business now that it has been reformatted and strengthened. We are layering on marketing programs that we have been testing for the better part of a year, and those are proving successful.

Second, on the acquisition side, we have bolt-ons: companies with $5–10 million in revenue, usually one or two locations. We come in, replace systems, put in processes, rebrand as BuildDirect, and integrate them into our procurement and marketing model. Our Orlando acquisition followed this playbook. Third, we target larger “division acquisitions,” typically $25–45 million in revenue. These are pricier, less easily integrated, and require net new synergies, like adjacent categories or access to new pro segments.

08/09/2025 What criteria do you use when evaluating acquisitions?

For bolt-ons, we are not looking for robust systems like ERPs or CRMs; it is often better if they don’t exist so we can install ours cleanly. What matters is strong local presence, loyal customer relationships, and a pro-focused customer base such as commercial, restoration, or institutional. We can then leverage our superior procurement and marketing capabilities to scale those businesses.

For larger deals, we rarely find companies with a better supply chain than ours, and their systems are usually only marginally more sophisticated. The real value lies in net new capabilities in adjacent categories such as countertops, trim, or cabinets, which overlap with our existing customer base. That is what we prioritize when looking at larger acquisitions.

08/09/2025 What mistakes do other roll-up strategies make, and how do you avoid them?

One mistake is integrating away the value of what you acquired. Early in my career at Mohawk, I saw both the benefits and the risks of acquisition integration. Acquirers sometimes impose their way of operating too strongly, ignoring that the acquired company built something valuable enough to be purchased in the first place. At BuildDirect, we consciously learn from acquisitions and pull their best practices into our broader operations. For example, our Michigan FloorSource acquisition influenced the footprint of our organic locations, and in Orlando we adopted practices that team was already excelling at.

Another risk is losing span of control. In inventory-heavy businesses, multiple uncoordinated buyers can lead to inventory creep and skew creep. To counter this, we balance local autonomy with strict discipline in procurement and marketing. Those are the two key synergies we always centralize, while training new managers on our systems to ensure consistency across the network.

08/09/2025 How is your acquisition pipeline shaping up, and are you on track this year?

We are on track for what we want to accomplish, and there is no shortage of great viable targets. We are mainly focused on high-growth areas in the U.S., with the Sunbelt being a primary area of interest, although we remain open to the right opportunities elsewhere. Orlando was our first step, and I see that market as important for the future.

At the same time, our marketing programs are gaining traction, and that changes the calculus between building versus buying. If the main thing you are acquiring is customer relationships with pros, then improved marketing may allow you to build rather than buy. We have already entered target markets by leveraging our e-commerce business, which creates an organic foothold. So while we definitely have many acquisition options, sometimes even too many, organic alternatives are increasingly attractive.

08/09/2025 Could building be a better growth path than acquiring for BuildDirect?

It could be. We think about grow\th through three tracks, organic, bolt-ons, and larger acquisitions. Even with larger deals, if we pay more, the value must come from net new categories we can scale across locations. For example, adding an adjacent category quickly could justify the price.

To me, M&A is a market entry tool, not an end in itself. You should never buy what you cannot build, and i\deally you should only buy if it’s cheaper or faster than building. That way the runway for growth remains essentially infinite, and you avoid being dependent on acquisitions alone.

08/09/2025 How do you think about acquisition velocity?

Constellation Software is a great model, they built a machine for pulling in both small and large companies. \We are targeting to increase our own acquisition velocity as we strengthen our divisions and management teams. Our leaders are capable of integrating both bolt-ons and larger deals at the platform level.

Recently, tariff uncertainty made us cautious, as sourcing differences across companies can influence deal attr\activeness. With much of that noise dissipating, we intend to accelerate. Our goal is to build a scalable model where we can comfortably pick up the pace without losing discipline.

08/09/2025 Do you plan to issue more equity, or can growth be funded with debt and cash flow?

We have no intent to issue additi\onal equity at this time. The types of opportunities we pursue are typically asset-based, backed by inventory and receivables. Opening new locations primarily requires working capital, not large fixed investments, so debt and operating cash flows are well suited to fund growth.

That said, circumstances can chan\
Equity can be fast and easy, but it often costs three times more than conserving cash. I’ve seen deals where the intrinsic value of the asset didn’t match the equity dilution, and it was simply done because it was convenient. That’s not how we operate. We would rather be patient than make a short-term decision that destroys long-\term value.
Our focus is building a great business every day. If investors want to hold shares forever, that’s fine. We’re not here to play liquidity games, we’re here to execute on strategy and grow intrinsic value.

08/09/2025 If the M&A market dried up for 18 months, how would you pivot?

Two scenarios could make M&A difficult. First, if everything suddenly got expensive because private equity firms flooded the space buying indiscriminately, we would simply build, adding locations near existing ones or growing organically. Second, if conditions got very bad and companies were imploding, it would be better to wait and acquire assets later at auction. We have seen that happen when large players collapsed from inventory issues.

That said, the market is target-rich, so I don’t see either scenario as a major risk unless it is tied to a very specific geography we need to fill. In that case, we could still pivot to other areas. Overall, whether through building, buying, or converting, we always have alternatives to keep growth moving.

08/09/2025 Why do some companies pay six figures for investor relations services?

On smaller exchanges like the TSXV, firms sometimes spend a couple hundred thousand dollars on publicity expecting a near term bump that later justifies dilution. I have a hard time with that, from a capital allocation perspective it feels like paying for attention rather than earning it with execution. If I buy stock in a company, I am hopping on a wagon already moving, I can hop off if I disagree with how time or cash is allocated.

We prefer to avoid ego feeding activities. We focus on our to done list, not our to do list, tell the truth, and let results speak. In my view, investing interest should be outbound, investors decide what is interesting, not manufactured by labels like “the Amazon of X.” Performance should be the loudest voice, not paid coverage.

Competitive Advantage

12/04/2023 What is BuildDirect's competitive advantage versus competitors?

Our main advantage is that everything is designed for pro customers. For example, on a large project like a 6,000 square-foot condo renovation, we provide free samples, direct-to-job-site shipping, and services ensuring materials arrive exactly when needed. This high-touch approach is hard for traditional retailers to deliver.

Additionally, our direct-to-manufacturer sourcing, usually outside North America, gives us a cost advantage compared to competitors who rely on distributors. This strengthens our margins and competitiveness.

17/05/2023 What makes Bill Direct's products and services unique for pro customers compared to competitors?

Pro customers such as remodelers, architecture and design firms, and contractors need more than products at a competitive price. They require products designed for smooth installation and minimal issues. Our claim ratio is extraordinarily low, which reflects that focus on reliability.

At our brick-and-mortar locations, everything is built for the pro. We provide direct docks for quick loading, fast loadout times, and targeted marketing programs. Unlike big-box stores with multiple categories, our facilities are streamlined for pros. Our e-commerce team also engages deeply with customers, focusing on helping them succeed in their businesses rather than simply pointing them to products. That pro-first mindset allows us to make decisions that look very different from competitors, whether in physical stores or online experiences.

17/05/2023 What makes Bill Direct's products and services unique for pro customers compared to competitors?

21/11/2023 Will the company remain focused solely on pro customers or also target homeowners?

The line between pros and homeowners can blur, but we have successfully pivoted to focus on pro customers. Our marketing, product offering, and services are all tailored for that segment, and we have refocused the business accordingly.

That said, some homeowners do shop like pros, whether through a Pro Center or our e-commerce site. While that remains an option, it is not our strategic focus. We continue to concentrate on serving pros, who in turn enable others to shop like pros when appropriate.

28/08/2024 How does BuildDirect's Pro Center model differ from traditional big box retailers?

Our Pro Centers are designed specifically for professional clients, unlike traditional retailers that primarily serve homeowners. We procure products directly from manufacturers, allowing us to offer high quality materials at very competitive prices. Our teams are trained to understand the unique requirements of professional clients, including installation services, so they act as true partners for our pro customers.

We also provide practical advantages such as high and low docks for efficient loading and unloading, fast turnaround, and local quick delivery. General contractors, developers, and foreign retailers benefit from our specialized knowledge and resources, which are tailored to the complexity of professional projects.

26/11/2024 How would you describe BuildDirect's competitive advantage over peers?

Our direct procurement model allows us to bring products to market cost-competitively and in larger quantities compared to big box and specialty retailers. Beyond that, we leverage a flywheel: beginning with e-commerce, establishing market presence, then expanding through organic pro centers or acquisitions. This approach enhances economics, demonstrates capital efficiency, and sets us apart with our e-commerce-first strategy.

07/03/2025 What is BuildDirect’s sustainable competitive advantage?

In flooring, many businesses suffer from channel conflict and structural weaknesses. For example, some distributors rely on single-source supplier contracts, making them effectively an outlet for one manufacturer. Others build entire models around servicing new construction, leaving them exposed when market conditions shift. Over time, these weaknesses cause even large players to stumble.

BuildDirect, by contrast, is unencumbered by those legacies. Our specification business is unusually broad, serving renovation, new builds, commercial development, and restoration. This flexibility allowed us to outperform peers last year despite high interest rates. In addition, BuildDirect has a long-standing brand, with 20 years of organic demand generation and efficient marketing. That history makes our e-commerce traffic very hard and costly to replicate. Together, those factors give us durable advantages in a challenging industry.

09/04/2025 What motivated you to become CEO of BuildDirect despite its challenges?

I’ve been in the flooring industry for more than 20 years and first encountered BuildDirect while at Mohawk Industries, one of the world’s largest floor manufacturers and a vendor to BuildDirect. Years later, I revisited the company. Despite its troubled past, I saw interesting fundamentals.

When I evaluate businesses, I don’t focus on perception but on components. BuildDirect had challenges in e-commerce, but they were solvable fulfillment issues. It also had an aggressive direct sourcing program, unlike competitors with multi-layer sourcing who claimed to buy direct but really did not. These pieces convinced me the company had a strong foundation to build upon.

09/04/2025 What exactly is a pro center?

In my early 20s, when I was building spec homes, I learned pros source materials differently than homeowners. Homeowners shop at retail stores like Home Depot or Lowe’s, but pros rely on supply shops for reasons like security, speed, and jobsite delivery. Later, as a merchant at Home Depot, I saw firsthand how difficult it was to serve pros in a retail-oriented store.
A pro center is built for professionals. It operates out of light industrial real estate, designed for quick load-out and same-day jobsite delivery. The assortment is narrower but much deeper, focused on continuity and installation-friendly products. Pros often need zero square feet one day and 4,000 square feet the next, compared to homeowners who average only 650 square feet. Pro centers also provide expert service to troubleshoot installation challenges. This model avoids over-reliance on any one customer segment, since pros adapt daily across residential, commercial, and renovation projects. That flexibility makes them a fantastic customer base to serve.

09/04/2025 Why would a pro customer choose BuildDirect over another pro center?

We design the entire shopping experience around professionals. Homeowners may use us too, but pros are our focus. Everything from real estate setup, inventory depth, and fulfillment speed to installation support is structured to meet their needs in ways traditional retailers and many competitors simply cannot match.

09/04/2025 Why would a pro choose BuildDirect over a big-box retailer?

For a pro needing one or two items, Home Depot or Lowe’s works fine. But when a pro needs 30 or 40 of the same item, problems appear quickly. For example, flooring jobs often require consistent runs of the same SKU and color. Big-box stores typically stock small quantities, which risks mismatches or supply gaps.

Pros also need speed and reliability. You can’t call a big-box store and have an order pre-cut, staged, and ready within an hour for pickup. Our pro centers are designed to do exactly that. Beyond inventory and fulfillment, we provide sticky services: pros treat our centers as their office or showroom, bringing customers in to finalize selections. That creates loyalty. When we buy a local operator with strong brand equity and stickiness, we preserve and strengthen those relationships. We don’t see big-box retail as a competitor in our value chain; in fact, they could be a potential customer.

09/04/2025 Who are your main competitors, and what is your competitive advantage?

Our competitors are typically local wholesale flooring shops. A typical location does about $6.5 million annually, and a small chain may have three or four stores doing around $20 million in total. That is the scale we see most often.

Our model is unique because we combine e-commerce demand generation, a consolidator platform, and pro-focused brick-and-mortar operations. In some cases, we even supply potential competitors in markets we later enter, which gives us insight and optionality for future acquisitions. The advantage is structural: we can grow faster, operate deeper inventory, and create sticky relationships, while competitors remain small and fragmented.

09/04/2025 Why is flooring more defensive than other construction categories?

First, flooring is essential. You cannot obtain an occupancy permit without it. Unlike some materials, it is non-optional. Second, it endures heavy wear and tear. People walk on it every day, so even with better quality products, replacement is inevitable. Third, it is highly style-driven. Flooring is often the largest visual element in a space, so design changes push upgrades.

The average lifespan is shortened because, as we say, flooring “uglies out before it wears out.” It is relatively inexpensive compared to replacing cabinets or major structural elements, so homeowners prioritize it in renovations. These factors make flooring a recurring, resilient category across economic cycles, which is not true for many other building materials.

23/04/2025 What are the biggest misunderstandings about BuildDirect when you talk to investors?

The first is that people visit builddirect.com, see an e-commerce site, and assume that’s the whole story. In reality, e-commerce is one piece of a broader Pro Center-driven

30/05/2025 What are your plans to deepen penetration in the commercial flooring segment, and how do margins compare with residential?

By commercial, we mean large projects like condo renovations. We are already in that space, and with Anchor we went deeper into subsegments. The Lowe’s acquisition of Artisan Design Group is an example of a big roll-up focused on builder and commercial, but with fully installed services. Margins there are much lower.

Our focus is on product fulfillment, direct sourcing from factories, and shipping straight to projects. Margins there are excellent. Installation is usually handled by general contractors, and margins are weak in that area, which is why we avoid it. Our approach is a strong advantage. We recently announced a large contract win, and we have several others as well.

08/09/2025 What isn’t a commodity in your business, and how do you differentiate?

Many things are commodities: basic services, compliance, timeliness. Those are table stakes. What isn’t a commodity is deep, multi-pronged relationships with pro customers and suppliers who go beyond delivering on spec. You cannot buy those relationships off the shelf or source them through an RFP.

Differentiation comes from people and partnerships. A supplier that proactively brings new ideas, alternative deal structures, or ways to help us grow is valuable. That thinking comes from my time at Home Depot, where suppliers were expected to drive innovation. For us, true differentiation lies in being a trusted supplier to pros and in aligning with partners who treat innovation as a core value, not an afterthought.

08/09/2025 Why is BuildDirect a better buyer than competitors?

I would not frame it as better, we are doing it differently. Flooring has many middlemen in the value chain. Some companies manufacture part of their assortment, then flow the rest through distribution or partnerships. Years ago, many built direct chains in China. Tariffs broke those chains, and sourcing shifted across multiple countries. Direct import today can mean Southeast Asia for several categories, tile from Europe and India, laminate from various regions, carpet from the Middle East, and more. Complexity increased, and many reverted to distributors.

What attracted me to BuildDirect was a time-tested, multi-country direct procurement model that is flexible. We often think of big box and large players as customers in the supply chain rather than competitors. There is no patent on this play, others can try, but many have struggled. Talent density in importing within our space is limited outside major manufacturers, so executing consistently at scale is hard.

08/09/2025 What belief about running a business would you erase from investors’ minds?

The idea that you must have an impenetrable moat to win. Moats matter, but they are one voice in the choir. Focus and execution can beat a theoretical moat. Competitors can start tomorrow, that is fine.

I hope people keep overvaluing moats, it creates opportunity for disciplined operators. Many chase unicorn novelty out of a desire for protection rather than doing the daily work. I prefer competition, fast follow, do it better, stay focused.

Operations

12/04/2023 Beyond Q4 efficiency gains, what other efficiencies has BuildDirect identified?

Yes. Our direct manufacturing procurement model, refined over many years, has begun to deliver benefits, particularly since mid last year. There is still a long road ahead with significant synergies to unlock.

We expect further margin opportunities and new business by extending this model through brick and mortar, adding services, and pursuing a robust roadmap of efficiencies.

12/04/2023 Why is BuildDirect focusing more on pro customers?

The flooring industry is driven by professional installers, who typically control product and installation together. This segment generates repeat revenue, requiring less marketing spend, and our model is designed to serve their specific needs.

It is also underserved by traditional retailers. Our shipping programs, product availability, order quantities, and services are tailored to pro customers, helping them build their businesses in ways competitors struggle to match.

17/05/2023 What is Bill Direct’s strategy for ensuring an efficient supply chain?

Our legacy e-commerce operation was built on a lean supply chain model, working directly with factories and minimizing middlemen. We also collaborate on product specifications to ensure they meet pro needs, rather than buying off-the-shelf products from trade shows. This requires more upfront work but creates a stronger fit for our business.

17/05/2023 What is Bill Direct’s strategy for ensuring an efficient supply chain?

As we expand into brick-and-mortar operations, we see opportunities to integrate this direct model further. It is unusual for independent retailers to go direct, but for us it is a key advantage. We keep touchpoints minimal, making our supply chain one of the leanest in the industry. The team’s ability to navigate COVID-related disruptions highlighted this strength, especially as competitors struggled. Now, as conditions normalize, it provides even more benefit going forward.

29/08/2023 Where are your operations based, and are there plans to expand into Canada?

Our e commerce operations are based in Vancouver, British Columbia, with the remainder of our teams located in the United States. More than 95% of our sales come from the U.S., but we are actively looking at opportunities in Canada as well.
Part of this expansion will be enabled by our e commerce platform changes, along with pursuing the right types of businesses to layer in both Canada and the U.S.

29/08/2023 What is your strategy for growing e commerce profitably, and what new tactics are being used?

Our strategy starts with having a technology stack that scales well, which underpins the ERP and related projects we have been implementing. Historically, the business relied on heavy custom-built technology. We have now shifted to leveraging modern platforms that are a better fit for e commerce. Pricing is another key area. Flooring is an infrequent, often aspirational purchase, and our team’s deep category experience allows us to design pricing strategies that optimize both the shopping experience and margins, moving away from the “everyday low price” model that never really fit this sector.
On fulfillment and logistics, we previously depended heavily on third party providers. Recently, we insourced operations for the Midwest and Northeast, covering a substantial share of U.S. sales. This gives us direct control of inventory, fulfillment, and customer service, while also enabling local sales opportunities. These changes have already shown up in our financial results. With these projects nearing completion, we will continue updating the market as milestones are reached.

21/11/2023 How will you advance e-commerce operations following the overhaul?

The overhaul was primarily about spinning out the tech stack and adding flexibility in product and marketing. With that complete, the e-commerce business is now focused on scaling through enhanced marketing and building out a dedicated sales function, recognizing this is not an everyday purchase and customers benefit from transactional support.

We are also ensuring tight integration with inventory scale, order fulfillment, and shipping. Historically, tech limitations were the main barrier. With a leaner, flexible, and cost-effective platform in place, the focus has shifted from fixing infrastructure to driving growth, marketing, and sales execution. Opportunities for further cost savings or EBITDA improvement exist, but the priority now is growth on the strengthened foundation.

26/11/2024 Can you discuss your new store opening in Brighton?

In Brighton, we are opening a facility that will serve as a pro center for both homeowners and professional customers. The location will operate under the BuildDirect brand, offering our existing mix of products, including hard surface, soft surface, and supplies.

07/03/2025 What key challenges did you identify when taking leadership, and how did you prioritize tackling them?

The first piece on the e-commerce side was having the right leader with experience in homeowner e-commerce operations. We brought in Jay Allen, now our COO, who led a very aggressive turnaround in that business. Two main issues were addressed. First, marketing strategy: flooring is discretionary, and top-of-funnel marketing drove costs through the roof. Jay focused on high-intent marketing spend, which increased per-click costs but dramatically reduced overall marketing cost per sold order. This was counterintuitive compared to the prior appro

ach.Second, fulfillment: flooring is heavy relative to its price, and the legacy model used third-party warehouses designed for small packages. Those facilities are not built for flooring, leading to extremely high fulfillment costs. For example, an average $3,500 order could cost $1,300 to fulfill. Today, using our own Pro centers built for heavy materials, that cost is closer to $125. These two changes were critical in fixing the business.

07/03/2025 What was the most difficult decision you had to make during the turnaround?

The hardest decision was reducing the corporate team. Over time, the company had centralized functions that became redundant and could be addressed through system enhancements and automation. One example was the heavy, custom-built tech stack, which was overengineered for what the business required. Meanwhile, the industry had advanced significantly with modern e-commerce platforms, ERPs, and CRMs.

By simplifying systems and reducing complexity, we became far more competitive and scalable. It was a tough decision, but one that made the company stronger. Typically, in any turnaround, these decisions are among the hardest.

09/04/2025 What steps are you taking to improve profitability while scaling revenue with cost discipline?

There are three key operating areas we’ve worked on. First is the commerce business, where we shifted order fulfillment from third-party warehouses to our pro center network. We also tightened marketing through geo-fencing based on our brick-and-mortar footprint. This took time but now delivers healthy returns.

Second is corporate costs. When I joined about two and a half years ago, we restructured heavily, with the last piece finalized a few weeks ago. This wasn’t just about cutting excess expenses but refocusing the corporate platform on essential needs and reallocating resources into operating divisions. Third, our brick-and-mortar business generates strong EBITDA and offsets earlier challenges. Together, discipline in e-commerce and clear corporate guardrails have been critical to margin improvement.

09/04/2025 How do pro centers and e-commerce work together in your strategy?

A practical example is Southern California. About a year and a half ago, we targeted that market. We started by scaling e-commerce there through third-party fulfillment, which gave us a healthy customer base. Once the metrics were strong, we chose to build rather than buy and opened a pro center in Santa Fe Springs. That location now serves walk-in pros while also handling local fulfillment for Southern California and adjacent states like Arizona and Northern California.

Our model is e-commerce first to seed demand, followed by a brick-and-mortar build or acquisition once volumes justify it. This lowers ramp-up costs and accelerates traction. The traditional model is the reverse, starting with physical locations and hoping online grows. Our flywheel is faster and more efficient because e-commerce generates targeted traffic before we commit to physical infrastructure.

17/04/2025 Are suppliers more willing to provide inventory on consignment?

Yes. Even before the recent tariff noise, there has been significant excess capacity in the flooring industry, particularly in hard surface products like vinyl plank and laminates. Because of that, we have had many options for quite some time. We are strategic in sourcing from different companies to maintain healthy competition, and with the current supply glut, buying on extended terms or consignment is very feasible. I don’t see that dynamic changing anytime soon.

Interestingly, unlike other industries where oversupply typically drives costs down, flooring pricing tends to remain inelastic. Over my 20-year career, I’ve found that prices are driven more by narrative, look, feel, story, and brand rather than raw supply and demand. That makes the current environment quite favorable for us.

17/04/2025 Are suppliers more willing to provide inventory on consignment?

23/04/2025 What is BuildDirect’s business model?

We don’t see ourselves as the Amazon of home improvement. Instead, we think in terms of total addressable market in flooring and focus on disciplined capital allocation, similar to smart operators in any industry. To give an example, I have my laptop propped on Ray Dalio’s Principles, which is symbolic of how we think. We also require The Outsiders as reading across our executive team and company, because innovation often comes from the edges of the organization.

23/04/2025 How many Pro Centers does BuildDirect have across North America?

Of those nine, one is in Richmond, Canada, just outside Vancouver. Six are in Michigan, including five acquired earlier and one newly built. We also have a location in Santa Fe Springs, California, outside Los Angeles, and a recently acquired site in Longwood, in the Orlando market, to serve the Southeast.

23/04/2025 Who are your customers and what is their journey like?

Most of our customers are professional contractors, such as remodelers. Today they might install flooring, tomorrow crown molding, doors, or windows. We also have homeowners who shop like pros, often after deciding on a product for their home, but even they usually work with a contractor.

Both our website and Pro Centers are geared toward serving pros. That’s intentional because big-box retail footprints are designed for homeowners, which makes attracting pros difficult. BuildDirect flips that model. We’re designed for pros first, and if a homeowner shops like a pro, that’s great, but the system is built for professionals.

23/04/2025 Do you deliver materials, or do customers pick up at Pro Centers?

Both, and we do delivery very well. I learned firsthand during the 2008–2009 housing crisis, when I was building spec homes in my early 20s. It was clear that timing and reliability are everything. For pros, materials can’t arrive too early or too late, and they must be in perfect condition.

That experience shaped how we run logistics at BuildDirect. We deliver directly to homes, job sites, and commercial projects, and we hold inventory for new builds. Supply chain reliability is often the deciding factor for a pro choosing a supplier, and it’s a core strength of our business.

23/04/2025 What changes did you make in your first 90 days as CEO?

Before joining, I reviewed extensive documentation and saw that BuildDirect had strong consistency in its deliverables. But there were aspects of the e-commerce business and platform where, if you stripped them away, you could simplify and strengthen the foundation. It’s one thing to say that in theory, another to actually execute it, but that was my first priority.

I focused on identifying which pieces were essential and which were distracting or diluting value. By clarifying and streamlining, we could focus resources where they mattered most and set a solid base for future growth.

23/04/2025 What did your first 90 days as CEO focus on?

It takes a team, and I was fortunate because the underlying business was already strong. I felt genuine excitement stepping in, since I saw a huge opportunity to resolve a few challenges and use the company as a platform for consolidation in the industry. My prior turnaround experiences gave me some scar tissue, so I approached carefully. Every day I journaled what happened, looked for patterns, and resisted rushing into changes until I had a clear view.

Once I had that, we quickly moved into triage: ensuring acquisitions were running efficiently, strengthening leadership, and de-risking the business. I spent significant time rebuilding the corporate team and e-commerce function, making sure the right people were in place. I asked countless questions, held town halls, and encouraged employee surveys. The people closest to the customer often had the answers, and my role was largely removing the layers or pet projects slowing things down.

23/04/2025 What is BuildDirect’s business model?

The company started as pure e-commerce, but today it’s an omnichannel model. Most of our sales come from our Pro Centers, our brick-and-mortar footprint. Our e-commerce platform both seeds new markets for future store development and integrates with those physical locations. At the core, we’re in the flooring industry with some adjacent categories like cabinetry, countertops, and trim where customers overlap.
We don’t see ourselves as the Amazon of home improvement. Instead, we think in terms of total addressable market in flooring and focus on disciplined capital allocation, similar to smart operators in any industry. To give an example, I have my laptop propped on Ray Dalio’s Principles, which is symbolic of how we think. We also require The Outsiders as reading across our executive team and company, because innovation often comes from the edges of the organization.

23/04/2025 How many Pro Centers does BuildDirect have across North America?

Today we have nine. I would love to see a map dotted with 75 Pro Centers, which I think is the sweet spot for building a phenomenal business without going into tertiary markets. Our e-commerce operation runs separately from our Vancouver office, where I’m based.
Of those nine, one is in Richmond, Canada, just outside Vancouver. Six are in Michigan, including five acquired earlier and one newly built. We also have a location in Santa Fe Springs, California, outside Los Angeles, and a recently acquired site in Longwood, in the Orlando market, to serve the Southeast.

23/04/2025 Who are your customers and what is their journey like?

23/04/2025 Do you deliver materials, or do customers pick up at Pro Centers?

23/04/2025 What changes did you make in your first 90 days as CEO?

23/04/2025 What did your first 90 days as CEO focus on?

23/04/2025 How do you decide between building new Pro Centers or acquiring existing ones?

It’s really math. Building has about a five-year ramp. You can break even and pay back quickly, but it takes patience. A typical Pro Center can generate $6–8 million annually. Acquisitions are usually in that same range, though they may be called distribution hubs or wholesale shops. We rebrand them as Pro Centers.

We prefer not to rush. If you’re baking bread, give it the full time. Acquisitions, meanwhile, depend on people and culture. Our brand, systems, and supply chain are strong, so procurement is rarely the driver. The real question is whether the team and relationships align. That was the case with our most recent acquisition, Anchor and Yorkshire, which proved to be a natural fit with real synergies in marketing and procurement.

23/04/2025 Using Anchor and Yorkshire as a case study, how do you expand contractor relationships and revenue after an acquisition?

Our COO, Jay Allen, and his team lead integration before and after closing. They focus on a smooth transition and getting systems in place. But we don’t force companies into rigid molds. Many sellers are coached to install enterprise software like ERP and CRM before selling. We don’t care about that. In fact, we often leave existing systems alone at first, because our focus is on people, relationships, and continuity.

Once integration is stable, we build on contractor relationships by leveraging our supply chain, marketing capabilities, and broader platform resources. The acquired teams usually have strong strategies and customer loyalty. When they suddenly become part of one of the largest flooring companies in North America, they gain tools and scale to pursue ambitions they couldn’t before. Our job is to support that energy without letting it run too far ahead of itself.

23/04/2025 How does BuildDirect approach integration after acquisitions?

If we buy a business, there’s a good chance we’ll eventually migrate it onto our systems and change processes. We’re tough on ourselves in measuring results and take a conservative approach. I don’t buy multiples, I buy businesses. Replacement value and strategic fit matter most. Multiples need to make sense, but they’re not the driver. That discipline, I believe, is our superpower in consolidation because it positions us for highly accretive returns.

On integration, we respect legacy brands. BuildDirect becomes the main identity, but local brand names are often subordinated to preserve recognition. Systems are converted, life goes on, and from the customer’s perspective we add value with tools like nurturing programs, technology for faster quote building, and project take-offs. That can boost productivity from one or two RFPs every few days to 10 daily. It’s energizing for the team and adds immediate customer value.

23/04/2025 What is BuildDirect’s business model?

23/04/2025 How many Pro Centers does BuildDirect have across North America?

23/04/2025 Who are your customers and what is their journey like?

23/04/2025 Do you deliver materials, or do customers pick up at Pro Centers?

23/04/2025 What changes did you make in your first 90 days as CEO?

23/04/2025 What did your first 90 days as CEO focus on?

23/04/2025 How do you decide between building new Pro Centers or acquiring existing ones?

23/04/2025 Using Anchor and Yorkshire as a case study, how do you expand contractor relationships and revenue after an acquisition?

23/04/2025 How does BuildDirect approach integration after acquisitions?

23/04/2025 How is BuildDirect using AI in operations?

We’ve embraced AI across marketing, IT, and deal analysis. It allows us to iterate faster, model financials quickly, and problem-solve in ways that would have taken weeks before. For us, it’s not a side tool; it’s integrated into how we operate.

When I evaluate service providers, one of my first questions is how they use AI. If the answer is superficial, they’re off the list. We want partners who are forward-thinking. Internally, adoption started bottom-up, especially in marketing, and spread quickly. Like Nvidia, we stay rifle-focused: if AI can do it better, we adopt it and scale further.

30/05/2025 What is the timeline for planned new pro center openings in key US markets?

On the build side, we have a couple in mind. On the buy side, as I’ve said before, acquisitions happen when they happen. We would be thrilled if we acquired 15 to 20 million in revenue this year. With Anchor Yorkshire we took out about six. From a timing perspective, look for the balance ideally in Q3, with integration in Q4, though we do not force deals.

They have to make sense and be structured the right way. For those watching our pipeline, it is healthy, but we are not looking to add too many new ones unless the structure is right. Nothing further to add on that.

30/05/2025 Why does BuildDirect prefer acquiring established pro centers over building new ones?

It is easier and provides faster payback. You enter a market with an established team, which is the most important factor. We look for businesses not run by the owners so that post-transaction we avoid operational challenges. Having a team in place with existing relationships allows us to plug in procurement and marketing synergies for rapid improvement

We saw that with Anchor York store, which had a fantastic, committed team that embraced our products and marketing. The industry is massive, with over 12,000 independent operators, so there is no shortage of potential targets. But again, it has to be the right deal, structure, and geography for us to prioritize.

30/05/2025 How will you integrate the recent Florida acquisition and what synergies and timeline do you expect?

Anchor York store is interesting. They have a strong presence in the Southeast and in large contract sectors like medical and hospitality, where we are weaker. So there are synergies both ways. Integration was fast and already completed. The team and structure there made it smooth.

Now it is about loading incremental products they do not sell today. Inventory is in place, samples are being sent, and it is a rolling process. We expect improvements in Q3 and Q4. There are also potential synergies in opening new segments for us, and we are already participating in line reviews, which has been great.

30/05/2025 How is the transition from third-party warehouses to pro centers progressing and what impact has it had?

The transition is complete. We no longer use third-party logistics providers. In some cases, we even offer 3PL services ourselves, which is a reversal of the old model.

This has brought down fulfillment costs significantly. Large 3PL warehouses are inefficient for heavy products like flooring. They drive costs up when inventory is slow-moving. By exiting those facilities, fulfillment costs have progressively come down, customer service has improved, and shipping claim rates are now very low.

08/09/2025 Why do many flooring companies fail at managing these challenges?

Most flooring businesses grew from single installation shops. The industry does not attract professional managers who specialize in multi-location scaling. Talent density is thin, and entrepreneurs who build one or two strong locations often struggle to maintain performance when scaling to ten or more.

Unlike replicating a simple retail footprint, flooring has regional product differences and installation complexity. Managing procurement, assortment, and service across regions requires systems most competitors never develop. Without them, scale adds fragility instead of strength. This challenge is common across many building supply categories with a service component.

Competittion

12/04/2023 Do you expect challenges from competitors?

Not really. Having a single customer focus prevents dilution of strategy, offering, and execution. Everything we do is centered on the pro customer, giving us a clear and consistent direction.

While competitors serve other segments, our omni-channel model and pro-focused services set us apart. Even our location choices and customer conversations are tailored to pro-level needs, giving us depth competitors cannot easily replicate.

23/04/2025 How do big box retailers fit into your value chain?

There are two ways. Big box retail, like Floor and Decor or Home Depot, is more of a customer. Floor and Decor does import some but buys a lot from people like us. I’m a huge fan of their payback model, but they are geared towards the homeowner, with a broad assortment, Class A real estate, and an approach that can be frustrating for pros. Same with Home Depot and Lowe’s. Pros who shop there are shopping like a homeowner. We have some homeowners shop with us even though we’re not geared for it, which is fine.

Our facilities are light industrial real estate. We want multiple bay doors, drop downs, drive ups, and two-minute load outs. Our average inventory quality for a SKU is about four times theirs because of the type of projects we do. That’s how we interact in the market, and the same applies to anyone focused on the homeowner.

23/04/2025 Who are BuildDirect’s competitors, and what is the competitive landscape?

Big-box retailers like Home Depot, Lowe’s, Menards, or Rona are not competitors for us. They serve homeowners, not pros. Pros may buy there occasionally, but those stores aren’t designed for them, so we don’t consider them competition.

Our competition is regional companies, local brands with heavy inventory and long histories in their markets. On the consolidation side, there are only a few notable players. Sterling Group’s Artisan Design, which later sold to Lowe’s, is one example, but that model leaned heavily into installation services, which is hard to scale across multiple states. Private equity generally avoids flooring distributors because they don’t like inventory-heavy businesses with light accounts receivable. We’re the opposite, we value inventory strategically and have the network to consume it. That’s a real differentiator.

08/09/2025 Why do pros choose BuildDirect over Floor & Decor, and how do your sourcing and pricing differ?

I am a fan of Floor & Decor. They were started by a Home Depot team solving the weekend warrior gap, with higher per-SKU store inventory than big box and a homeowner focus. New stores cost about $10 million, and they targeted roughly a 35 percent return, very disciplined. Our customer is different. Pros roll up needing 3,000 to 4,000 feet, and the lead time they give is often the half hour between leaving a project and arriving at our location. We are built for that, with industrial retail footprints where you can back up a truck and get pallets loaded in five minutes.

Pros who operate independently need more than product. They need a knowledgeable back office, installation expertise, claim resolution, and practical help with job issues. Our surveys and feedback start with product knowledge and installation know-how. A big box can point you to a website or manual. Our team will walk you through fixing a subfloor issue. We serve homeowners too, and pros shop at homeowner-centric stores sometimes, but we are designed for pro speed, quantities, and support. Everything we do, from assortment depth to service model, is built for pros.

08/09/2025 When you say you stock in the thousands while others have hundreds, who has hundreds?

I was referring to inventory available to the customer, not what we procure. A local Home Depot or Lowe’s typically holds inventory sized for a small weekend project. You can special order larger quantities, but they are not usually on hand. Floor & Decor will have deeper in-store inventory than big box for a given SKU, which matches their model.

For pros, the need is different. You cannot usually find forty matching doors in stock at a big box today, you would special order or drive to multiple stores. Pros want to back up a truck and load everything at once. Homeowner strategies favor broad assortment with shallow inventory. Pro strategies favor a narrower set with much deeper inventory. We are centered on the pro, so we keep a rifle focus on a smaller subset with depth, while also supplying other retailers as one of multiple sources to fill out their broad assortments.

Growth

12/04/2023 How will the company accelerate revenue growth and drive profitability?

We intend to expand our brick and mortar operations using different models we are evaluating and pursuing. On the e-commerce side, we have been improving unit economics significantly and will ramp that business as well.

We view e-commerce growth through geographic targeting, adjacent categories, and increased digital spend, all of which can expand the business further.

12/04/2023 In which U.S. states does BuildDirect plan to expand its physical footprint?

We are not disclosing specific states. Our e-commerce platform can serve any area nationwide, and integration with physical locations is possible in many regions.

At this time, however, we are not releasing a target list of states.

17/05/2023 What are your thoughts on the DIY trend versus the pro segment?

DIY typically covers smaller projects like bathroom renovations or small flooring replacements, while pros are engaged in larger, more complex projects involving transitions and multiple breakpoints. Our business is focused on the pro segment and the types of projects that demand their expertise.

We do have customers who buy products and install them themselves, but those orders are smaller in scale compared to the projects managed by professionals. The pro remains the core focus of our strategy.

17/05/2023 What are your thoughts on the DIY trend versus the pro segment?

29/08/2023 After streamlining e commerce operations, how will revenue split between independent retailers and builddirect.com?

In the short term, we expect about a seventy-thirty split between independent retailers and builddirect.com. Long term, our restructured e commerce platform can scale efficiently without requiring significant additional investment.

With marketing strategies and sales teams in place, e commerce alone could easily exceed $100 million in revenue. While we are not providing formal guidance, the business faces few constraints once platform projects are complete, making it an exciting growth driver alongside our legacy operations.

21/11/2023 How will higher interest rates and macro uncertainty affect housing demand for pros?

Housing is underbuilt in both the U.S. and Canada. Importantly, about 70% of the flooring industry comes from remodeling, not new construction, and our business is heavily focused on pros who drive remodeling in both residential and commercial projects. Flooring as a renovation also directly adds long-term property value.

With a total addressable market above $70 billion, short-term macro pressure has less impact on a company our size and growth model. For example, $55 million of our TAM comes from only five Pro Centers in Michigan, meaning we still have significant share opportunities across other markets.

21/11/2023 With the launch of your 6th Pro Center, which regional markets are next?

We are not providing specifics beyond the U.S. and Canada, but we maintain a pipeline of locations under evaluation. In some cases, our e-commerce business concentration provides a natural entry point for a Pro Center, typically in major U.S. markets.

We are also considering growth via organic expansion and potential mergers or acquisitions. The model travels well, and we see many prospects to pursue.

29/04/2024 In Q4 you wrote down approximately $2,100,000 related to intangible assets at Superb. Does this change your growth outlook for the business?

That segment is tied more to the new construction side, but we have also secured contracts on the commercial side and in other new sectors. As older customers and value from that business decline, new customers are being onboarded. So from a growth standpoint, the write-down does not change my view of the business.

28/05/2024 What markets is BuildDirect targeting for Pro Center growth?

On the Pro Center side, the markets are primarily tied to our penetration with the e-commerce business. As we build out key markets with e-commerce, they naturally become markets for expansion with a brick-and-mortar facility. The two strategies work very well together, and the focus will be on major markets throughout the U.S.26/11/2024 Which North American regions offer potential expansion opportunities?
We prioritize major markets where e-commerce and digital demand generation perform strongly, such as Los Angeles, Vancouver, Toronto, New York, New Jersey, Dallas, and Atlanta. These markets allow faster payback when adding pro centers. Outside these, we also see acquisition opportunities across the Midwest and West Coast. Many regional retailers face scalability challenges and high costs, making them strong candidates for integration. While we target larger markets, we remain flexible geographically.

26/11/2024 Which product category is showing exceptional growth right now?

Online, our strongest categories are wood and synthetic wood such as vinyl plank and laminate. Carpet and supplies also perform well in pro centers. Recently, we piloted tile sales online, which have been very successful. Tile represents a large opportunity in both sales and margins, especially in brick-and-mortar centers. Our approach focuses on a tight, deep core assortment rather than the broad homeowner-focused ranges common at big box retailers.

09/04/2025 What does BuildDirect do?

BuildDirect is focused on the North American flooring industry, with adjacent categories planned for the future. We are primarily a consolidator in this space with a strong focus on professional customers, which we will likely discuss more later. The total addressable market is about $90 billion and continues to expand, making this a great industry to be part of.

09/04/2025 Why did you view BuildDirect as a strong opportunity despite its challenges?

BuildDirect already had a brick-and-mortar foothold on the pro side, which worked well alongside its e-commerce potential. The BuildDirect X Pro program, developed over many years, built a customer base of subcontractors who worked across categories like flooring, crown molding, and cabinetry. That base offers significant potential for adjacent expansion.

The flooring industry is highly fragmented. If you are above $50 million in U.S. revenue, you are already on the list of top competitors. That scale supports procurement and marketing advantages. When I objectively evaluated the pieces, the team, the challenges, and the potential, it was clear this company could be retooled as a consolidator. Honestly, it felt like uncovering a buried treasure: the fundamentals were there, and the opportunity was massive. I feel grateful we get to execute on it.

09/04/2025 What is your personal approach to innovation and growth strategy?

Fifteen years ago, I believed innovation meant finding a big idea and patenting it. Today, I focus on building companies in a capital-disciplined, highly accretive way. That means structuring deals for fast, lucrative paybacks, keeping operations sticky and defensive, and avoiding concentration risk.
For example, if an acquisition target has 15–20% of revenue concentrated in a single customer, it’s off the list. I am a value investor at heart and apply that philosophy in building BuildDirect. We stay rifle-focused, avoid distractions, and resist chasing “shiny object” projects that often destroy capital. What excites me is making disciplined investments with outsized returns.

09/04/2025 What is your strategy for expanding into adjacent markets beyond flooring?

I like the flooring industry because it is both durable and diversified. Around 65% of flooring demand is driven by remodeling, which cushions against construction slowdowns. Flooring also combines utility and fashion: it wears out over time, and design trends drive replacement. That mix creates resilience.

Adjacent categories like cabinetry, countertops, trim, and molding are natural fits since pros we already serve work across them. Many of our suppliers also operate in these categories, making crossover more efficient. For simpler categories like tile, we seed online first, refine the assortment, then roll into brick-and-mortar. For more complex areas like cabinets or countertops, entry will likely come through acquisitions, since many flooring businesses also carry a “plus one” category. Our base must remain flooring because it is defensive. We will layer on other categories responsibly to diversify while protecting resilience.

17/04/2025 How do you feel about growth in the ecommerce side of the business heading into 2025?

I feel great. We’ve put in a lot of work over the past couple of years, and we now have a strong team running that operation. The business is increasingly connected with our pro centers for fulfillment, and I’m very bullish about its potential. Our demand generation primarily targets professional customers, though the website is designed to serve both pros and homeowners.

On the marketing side, our search campaigns and demand generation are geared toward the pro customer, and I’d say we’ve accomplished our mission in getting that model to a strong place. At this point, it’s about letting it run and scaling it in the opposite way of when we previously pulled it back. That’s our current approach.

17/04/2025 How do you feel about growth in the ecommerce side of the business heading into 2025?

23/04/2025 How is your ecommerce business performing?

Ecommerce is doing great. When I joined, the run rate was around $25–30 million, but we intentionally scaled it back while fixing and improving it. That explains the sales drop-off in recent years but also the massive growth in EBITDA. Now, ecommerce is a strong business we like a lot.

If you make money, we like you, and this business can scale back up to prior levels but with a much more profitable structure. We see it as a realistic and exciting opportunity with significant leverage for growth.

23/04/2025 Where do you plan to expand over the next five years?

Every major metro market is on the table. We prioritize the Sunbelt because of high population growth and the Midwest because of distribution advantages versus coastal markets. That said, we’re opportunistic, and our supply chain supports expansion across North America, including Canada in areas like Toronto.

Our model for new markets starts with e-commerce first, which seeds demand and integrates seamlessly with eventual Pro Center expansion in those major metro areas.

23/04/2025 Where do you plan to expand over the next five years?

Our model for new markets starts with e-commerce first, which seeds demand and integrates seamlessly with eventual Pro Center expansion in those major metro areas.

23/04/2025 Where do you plan to expand over the next five years?

Our model for new markets starts with e-commerce first, which seeds demand and integrates seamlessly with eventual Pro Center expansion in those major metro areas.

30/05/2025 How does the Florida acquisition fit into your regional growth strategy in the Southeast US?

We prefer opening ProCenters in intuitively growing markets like the Southeast and Sunbelt. Our ecommerce business already had a strong foothold there, and acquiring this business provided substantial freight savings by shipping locally.

It also opens up nearby states such as Texas. This will not be our only Florida location, just the first. Building a larger base of ProCenters throughout the South and Southeast remains a priority.

28/08/2025 With Pro Centers now accounting for 80% of revenue, how do you balance e-commerce investment with Pro Center expansion?

On the e-commerce side, we have already made significant investments in systems and processes, creating a strong platform for growth. Further expansion now mainly requires marketing spend and inventory, which also benefits Pro Centers. This allows us to grow both channels without starving one for the other.

28/08/2025 How much of revenue growth this quarter came from new acquisitions and Pro Centers, and did you see same-store sales growth?

In Q2, the Orlando acquisition was effectively neutral with a build-up period required for institutional flooring. As a result, revenue growth this quarter was primarily from existing operations, with only a small contribution from Orlando as it ramped. Moving forward, Orlando will contribute more meaningfully.

Despite Michigan’s macroeconomic challenges, our operations there held up well. This performance, against an industry backdrop that was potentially down 2% to 5%, demonstrates the strength of our model and team.

08/09/2025 How do you help pro customers generate leads?

Pros often alternate between selling and installing. One week they sell a project, the next week they install it, which creates a choppy funnel and crew utilization issues. We are very good at lead generation, a capability that comes from our e-commerce roots. We also know the specific pain points that keep pros from maintaining consistent flow, and we have built tools to smooth that.

I will not share too much detail here, but we run a variety of pilots focused on making that funnel more consistent. The two biggest needs for a pro are support to execute projects with the right products and a steady stream of demand. Our work aims to deliver both, so pros can complete more projects and offer better value to their customers.

08/09/2025 Do you offer lead generation as a paid service, or is it bundled because they are clients?

Two fronts. We are intentional about developing a marketable service, and that is on the team’s mind. Today we are running pilots quietly in the background. When I say product and services, I primarily mean marketing services for pros, built around generating and smoothing demand.

Outlook & Guidance

17/05/2023 What is your outlook on the housing market and demand for flooring products?

The total addressable market is $70,000,000,000, which gives us significant room to grow regardless of macro conditions. We are segment agnostic, meaning we can shift focus between new builds and renovation or remodel customers. Housing is stabilizing quarter over quarter, and we do not see current economic conditions impacting our revenue or growth expectations.

When we target the market, our approach is very pro-focused and segment agnostic. We design our marketing programs and offerings to serve new build construction, commercial renovation, and retail renovation, which is the largest segment in the flooring industry. We have seen some shifts between new build and commercial operations, but these dynamics are an important part of our growth story and future modeling.

17/05/2023 Will Bill Direct focus more on e-commerce or brick-and-mortar locations in the near future?

We plan to continue investing in both. E-commerce is an effective entry strategy that generates interest and builds an initial base of volume. Once demand is established, we leverage multiple fulfillment options to serve customers.

As we build customer interest, we add brick-and-mortar locations to backfill the market. These locations not only fulfill e-commerce orders but also serve local demand directly. This combined approach creates a strong model where e-commerce generates traction, and physical stores expand and sustain growth.

17/05/2023 How does Bill Direct balance e-commerce growth with brick-and-mortar expansion?

Looking at our past acquisitions, the strategy has been about volume concentration. E-commerce is our tip of the spear, and we intend to scale it up significantly. Alongside that, we selectively build out locations. Brick-and-mortar adds important local services and carries categories like rolled carpet, which makes up about 48% of the flooring industry. Carpet is difficult to sell online, but it remains a massive category well suited for our physical locatio

17/05/2023 What is your outlook on the housing market and demand for flooring products?

17/05/2023 Will Bill Direct focus more on e-commerce or brick-and-mortar locations in the near future?

17/05/2023 How does Bill Direct balance e-commerce growth with brick-and-mortar expansion?

17/05/2023 What catalysts can investors expect in the next 6 to 12 months?

Operationally, we are integrating e-commerce fulfillment into existing brick-and-mortar locations, a major initiative aligning our operations around the store-warehouse model. This supports e-commerce while also delivering local programs. In addition, with our e-commerce overhaul nearing completion, we will scale that business back up in straightforward, easily modeled ways.

On the financial side, the biggest catalyst is profitability and proving it through results. We are focused on strengthening the balance sheet to provide financial stability and support growth strategies. With positive adjusted EBITDA now being reported, we are on a solid foundation to pursue responsible growth.

29/08/2023 With efficiency initiatives complete, will you provide a longer term strategy through 2025–2026?

Both e commerce and brick and mortar operations have growth plans to scale revenue and profitability without significant additional investment. We are also reviewing opportunities to expand through M&A where conditions make sense. For e commerce, the completed tech stack improvements allow for scalable growth. For brick and mortar, one avenue is converting retail locations into store-warehouse formats that support local e commerce sales.

We may also acquire businesses with strong local relationships where our expertise and synergies add value. My personal focus is maximizing shareholder value, running lean operations, and producing strong EBITDA margins in the double digits. Rather than publishing long-term models, we prioritize staying agile and well positioned to seize opportunities as they arise.

29/08/2023 What catalysts can investors expect in the next 6–12 months?

The primary catalyst is refinancing our outstanding loans payable. With predictable EBITDA, we are focused on extending loan terms and improving cost of capital. Moving these short term liabilities into long term positions will strengthen the balance sheet and free us to concentrate on growth strategies.

That is the number one catalyst we see in the near term.

21/11/2023 What catalysts can investors expect in the next 6 to 12 months?

The primary catalysts will be around Pro Centers, whether through new builds, organic expansion, or acquisitions. That remains the main driver of growth.

Additionally, we have already paid down $3.2 million of liabilities this year and expect further reductions in Q4. With a deleveraged balance sheet, a reduced cost of capital from 15% to 12%, and consistent profitability, we are well positioned to pursue acquisitions and growth with additional debt capacity.

29/04/2024 What is the timing of scaling back up your ecommerce business and potential impact on revenue in 2024 and 2025?
On the build back up of ecommerce, it will be more back-weighted in 2024 with a stronger build in 2025. Because we import products directly and build that funnel up, it takes time to expand the marketing funnel, onboard additional team members, and layer in inventory to support the business. So the growth is heavier in the back half of this year and then much stronger in 2025 and beyond.

29/04/2024 Given the economic backdrop in the US, have you changed your growth outlook for 2024?

We definitely see some headwinds. A primary input for the flooring industry is housing turnover. New construction is a smaller segment compared to moving homes and renovation projects. With that backdrop, we see a bit of a headwind and expect this year to be somewhat softer than it would have been if rates had come down. At the same time, we are expanding our segments on the pro side, so we are not overly concerned but remain aware of the pressure.

28/05/2024 When will BuildDirect’s e-commerce business ramp back up?

It is essentially about aligning our inventory and customer service strategies with our marketing strategy. When we brought volume down in that business, we reduced demand generation spending, let inventory decline, and adjusted customer service teams accordingly. Now we are moving in the opposite direction, so it is a stair-step process upward through the build phase. I would say it is an active initiative, and we see a clear path to achieving it.

28/05/2024 How does BuildDirect see business performance for the rest of the year compared to Q1?

Q1 was partially impacted by changes we made last year to the business. On a normalized basis, those improvements have not yet fully flowed through. We remain optimistic about this year, and I would note that many of the initiatives to revamp the e-commerce business were rooted in Q1 and Q2 of last year. They flowed through and wrapped up in Q1 this year, particularly from an expense perspective.

26/11/2024 With possible interest rate cuts, how do you view the housing market in the next few years?

I prefer not to predict housing markets, especially in North America and Vancouver. Generally, a declining rate environment is positive for our business. We expect consumers and businesses to gain confidence, which will support more renovations and new construction. Overall, declining interest rates should benefit our operations.

07/03/2025 What is your five-year goal for Pro Centers, and what does the business look like at scale?

We continue to target 50 to 75 Pro Centers over the next five years. I would be very happy with that range. At scale, we see the business structured as a corporate platform with Pro Centers operating beneath it. Corporate operations should deliver EBITDA margins in the 12–15% range, conservatively, with minimal synergies required beyond procurement.

At that size, a half-billion-dollar business with roughly 15% EBITDA is very attainable. Achieving it is less about complexity and more about doing it the right way, capital efficient, disciplined, and focused on proper allocation. We do not chase massive deals for their own sake. Our excitement comes from executing the right deals the right way to build a durable, scalable business.

09/04/2025 Were there one-time factors in Q3 2024 results, or is growth sustainable?

No, there were no one-time factors. We are careful about that. The growth improvement is sustainable, supported by recent activity on the M&A side, the new development facility we put in place with RBC, and a very lean corporate platform. Continued improvement is the right way to view it.

17/04/2025 What are the top three KPIs investors should watch in 2025?

Most of our operational streamlining is complete, so the focus now is on our location-driven strategy, building and acquiring new locations. We’ve structured our financial reporting to provide transparency on costs and performance, making it easier to model growth. From here, execution is a numbers game tied to location expansion.

The second area is gross margin. Capturing the full benefit of direct procurement after acquisitions takes time, because pro-focused businesses already have samples in the field and those cannot be changed overnight. We continue to see opportunity to improve margins as procurement synergies are realized. Finally, while not strictly a KPI, deal structure remains closely tied to performance. Investors should look at how we grow locations, the economics behind them, and the margin lift that follows.

23/04/2025 What will trigger a turnaround in BuildDirect’s revenue trends, and when?

I believe 2025 is a breakout year for us. Our e-commerce business was scaled heavily during COVID when people were shopping from home. But it relied too much on third-party logistics providers, which created unsustainable fulfillment costs, and it leaned on low-intent, top-of-funnel marketing that wasn’t efficient.

We intentionally restructured it with a strong new team, focused only on high-intent, bottom-of-funnel marketing. That caused volumes to drop, but the business is now healthy and profitable. Going forward, e-commerce growth needs to track with Pro Center expansion so fulfillment costs remain low. With that shift complete, 2025 is when we expect to see growth return, supported by broader industry tailwinds like lower interest and mortgage rates.

23/04/2025 What are BuildDirect’s top strategic objectives for 2025?

Our plan is intentionally simple. We’re integrating acquisitions, unlocking procurement synergies, and adding locations through both builds and buys. For example, if a business bought at X can be supplied at Y through our network, that creates immediate value.

The “excitement” should come from the details of how we structure highly accretive deals, ones where both sides win, entrepreneurs see their businesses thrive, and our platform scales profitably. We aren’t chasing headlines or flashy numbers. We are disciplined, focused, and consistent in executing a build-or-buy strategy that compounds long-term.

30/05/2025 Will you be releasing guidance for 2025, and can you speak to seasonality?

No, we will not provide guidance. The reason is tied to our merger and acquisition strategy. We are focused on pursuing highly accretive deals, and capital allocation is taken very seriously. Looking at examples like Artisan Design Group shows how these businesses can be valued reasonably with tremendous upside. For us, success means achieving double-digit arbitrage on a deal plus fast payback. Timing is critical, which makes issuing guidance impractical. That said, I have shared what success looks like annually, and I would be thrilled if we acquired 15 to 20 million this year. We already closed 6 million annualized, leaving the balance ahead.

On seasonality, the back half of Q4 and Q1 are typically softer. If you look at a full year evenly, you can discount about 20% and reallocate it into Q2 and Q3. This year, Q1 was hit harder in Michigan due to terrible weather and noise in the auto industry, which impacted demand. Thankfully, that has unwound. In other markets like the Southeast and Southwest, weather patterns do not affect us the same way, and seasonality is much milder. Overall, aside from our Michigan concentration, seasonality across the business is relatively smooth.

28/08/2025 You aim to double e-commerce over the next few years. When will growth rates accelerate, and what EBITDA margins do you target?

We expect higher e-commerce growth rates beginning in Q4 this year, with continued investment into 2026. We target product margins above 50%. After fulfillment costs, contribution margin is around 25%, which is highly leverageable. For example, an additional $10 million in sales would see much of that flow through to the bottom line.

Financials

17/05/2023 What percentage of inventory cost is affected by high rates, and how will pricing changes impact the balance sheet?

As inbound costs come down, our cost of goods also declines. We expect to pass some of those savings to customers, but we also see opportunities to capture margin during this shift.

The flooring industry responded differently to supply chain disruptions, and I would commend the Bill Direct team for managing inventory extremely well. We avoided overpaying for inventory at higher fulfillment costs. Our fulfillment model is lean, with minimal touchpoints, which reduces inflation risk compared to competitors with more complex import models. For pro customers, time and quality matter more than price. Having the right product available at the right quality when needed is critical. We anticipate margins will continue to improve as we build products and services that drive the pro segment.

17/05/2023 What percentage of inventory cost is affected by high rates, and how will pricing changes impact the balance sheet?

As inbound costs come down, our cost of goods also declines. We expect to pass some of those savings to customers, but we also see opportunities to capture margin during this shift.

29/08/2023 How do you plan to address debt following six consecutive quarters of positive adjusted EBITDA?

Having produced our sixth consecutive quarter of positive adjusted EBITDA, we feel well positioned to refinance the debt of concern. Our plan is to complete this refinancing during the remainder of the quarter.
We are confident we will be able to deal with the debt before it becomes due at the end of this year.

29/08/2023 What gross margins do you expect once e commerce enhancements are complete?

Gross margins should reach over 40%, with significant upside potential as enhancements take hold.

29/08/2023 Will cost reductions continue, and what expense ratios do you expect for administration, sales, and marketing?

We have embedded a culture of lean operations, intelligent capital allocation, and expense management. We expect administration costs as a percentage of revenue to decrease, particularly after ERP integration, and third party logistics costs will also decline. Sales and marketing should remain fairly consistent as revenue scales.
We continually identify efficiency opportunities and act on them. From a financial perspective, our goal is to achieve double digit EBITDA percentages, exceeding 10% margins as revenue grows, which reflects ongoing optimization of R&D and administrative expenses.

21/11/2023 What are the company’s plans to achieve net income?

Our focus is on EBITDA and operating cash flow as primary profitability metrics. We currently have positive adjusted EBITDA but remain in a net loss position due to amortization of non-cash intangible assets from acquisitions. We expect these acquisitions to generate cash flow beyond that amortization period. In two to three years, once those intangibles are fully amortized, net income should align more closely with EBITDA and cash flow.

To add, Pro Centers and related acquisitions age well. Much of the investment is front-loaded, with relatively limited reinvestment needed to maintain operations. These assets often have been in business for decades, and we amortize intangibles over about five years. Once that period ends, the businesses should continue generating profit and net income, strengthening our position.

17/04/2025 What drove the decline in adjusted EBITDA year over year, and how are you addressing it in 2025?

Fiscal 2024 adjusted EBITDA was 2,200,000, down from 3,600,000 in 2023. The majority of that decline was due to lower sales, primarily from the strategic scale-down of ecommerce. Modest declines in the retailer and pro center sides had some impact as well. We also invested modestly in sales and marketing in Q4 2024, which we view as long-term investments. Looking ahead, we are addressing EBITDA by scaling our pro centers, opening and optimizing Richmond, Brighton, and Santa Fe, and pursuing targeted acquisitions. We continue to maintain tight cost discipline, with OpEx reduced by 2,300,000 in 2024, and further savings of 600,000 this year and 900,000 annualized moving forward. Our entire strategy, product mix, footprint expansion, and acquisitions, is designed to deliver profitable, capital-efficient growth that enhances adjusted EBITDA.

I would add that some expenses we incur, like sample costs and other startup items, are flushed through conservatively as expenses rather than capitalized. Some competitors handle them differently, but our conservative approach keeps the team aligned and maintains transparency. Carrie is very disciplined on this front, which helps ensure financial rigor and long-term alignment.

17/04/2025 What drove the decline in adjusted EBITDA year over year, and how are you addressing it in 2025?

17/04/2025 Can you provide specifics around the debt stack and covenants?

At year-end, total debt stood at approximately 11,000,000. Of that, 8,300,000 is secured debt provided by our three insider lenders, Lira, Policanus, and Beatty, who also serve on our board. This is very friendly debt with no ongoing cash interest or principal payments, which significantly reduces fixed obligations and strengthens near-term liquidity. The remaining 2,200,000 consisted of a portion of the new Royal Bank credit facility and vendor take-back payments for FloorSource, which will be paid off by early January. Overall, we are very comfortable with debt levels given the structure and insider support.

Under the Royal Bank facility, we have two covenants: a debt service coverage ratio of at least 1.2 times and a funded debt-to-EBITDA covenant of three times, excluding subordinated debt. Royal Bank holds the secured position on all assets, so the covenant calculation only includes their debt and certain capital leases. Currently, we have significant flexibility and room within both covenants.

28/08/2025 Your gross margins expanded to nearly 40% this quarter. Can you discuss sustainability and levers for further margin expansion?

Yes, it's a great question. We are in a unique position with both direct import and space-side distribution, which helps balance working capital and inventory. When tariffs or other changes arise, having both lines of supply allows us to leverage existing inventory already here while also understanding the practical implications of tariffs. Others without this flexibility are held captive.

For us, sourcing from multiple countries provides resiliency, and we track penetration of sales from direct import versus distribution as a key metric. There is still room for margin expansion, and by focusing on multiple supply chains and the professional segment, which is highly profitable, we intend to continue increasing gross margins.

Risks & Macro

12/04/2023 Do you expect inflationary pressures in 2023, and can you pass on costs?

So far through 2022, we have successfully passed costs to customers. In fact, higher costs have sometimes improved margins by generating more net income on fewer sold units. Inflation has not negatively impacted sales.

We are also supported by strong housing demand and an aging housing stock ripe for renovation. Serving diverse pro segments reduces exposure to consumer-only cycles. Our direct procurement model further mitigates volatility compared to sourcing from North American distributors.

28/05/2024 How are U.S. interest rates impacting BuildDirect’s business?

For the most part, the flooring industry is primarily tied to renovation and remodeling. The new construction segment is much smaller, unlike other building material categories such as roofing or siding that are heavily concentrated in new construction. We do have some segments tied to builders, but they are not nearly as dominant as in other categories. Overall, we have been able to navigate interest rate impacts fairly well.

28/08/2024 What is the impact of the current interest rate environment on BuildDirect's business?

There is general softness in the building and flooring industry across the U.S. and Canada, largely due to weaker housing turnover. Despite this, our team has managed the business well in the face of year-over-year declines. Lower interest rates are generally positive for housing turnover, driving new builds and rental activity. We have already seen a couple of rate cuts in Canada, which has made the housing market more optimistic, although consumers remain cautious.

In the U.S., while no rate cuts have occurred yet, data and economists suggest potential near-term cuts. We believe declining rates will support demand and our business moving forward, though the timing remains uncertain. Overall, the environment is extremely supportive as rates trend downward.

07/03/2025 Are tariffs an issue for BuildDirect as a Canadian company with U.S. operations?

This is a real concern for many in the industry. Just yesterday I spoke with a distributor that relied on a single-source supplier, and when tariffs hit that country, their entire supply chain was disrupted. For us, tariffs have had two main impacts, and in many ways, they have been positive.

When tariffs first hit China, many legacy importers shifted to places like Thailand, Vietnam, and Cambodia. That created artificial supply, not driven by demand, which benefited us since we are built to import effectively in an industry that often is not. Second, we avoid concentration. We diversify customers, segments, and suppliers. Our brands are not tied to manufacturer-driven specs; we design them and then find factories. If one country is hit, another is already online, and we can switch reorders seamlessly. There will always be complexities, but we are well positioned and often able to benefit from the chaos.

09/04/2025 How are you adapting to tariffs?

We have an experienced team and are taking a measured approach. When tariffs change, you have to consider cash cycles, what specific products are impacted, and how rules are finalized. Much of the information is still evolving, so patience is important. We have scale in the industry, which allows us to leverage different options without being in a defenseless position.

Most carpet consumed in North America is produced domestically, and carpet is a big category for us. Most hard-surface products are imported, and even with high tariffs they are still cheaper than domestic manufacturing. We avoid long-term supply contracts because I don’t like concentration, which makes us nimble and able to shift sourcing. Macro factors like housing rates or recessions have more impact than any one tariff change, so our strategy is to stay flexible rather than lock into rigid agreements.

23/04/2025 How do you view private equity’s role in this industry?

There was a roll-up by Platinum called Artisan Design Group, which focused on installed flooring and large commercial projects. That business model has low inventory and high accounts receivable (AR), which is attractive to private equity since AR can be factored. Inventory, on the other hand, is difficult. A truckload of iPhones has intrinsic value, but flooring is different. You’ll see inventory liquidated at 10 cents on the dollar because outside of a structured marketing program, flooring is very difficult to move.

Private equity wants low inventory and high AR, which is the opposite of what we want. We want low AR, consistent repeatable contracts, low risk, and low customer concentration. We also want inventory because we are direct importers. Our model is designed to help businesses transact. PE groups want companies cleaned up before sale. We’re the opposite, willing to plug into whatever ERP system they have, even QuickBooks or Excel. We do much of the heavy lifting, sometimes both sides of due diligence, to help entrepreneurs retire. Many businesses struggle with succession and can’t sell. We step in with a strong team and services that make it happen.

23/04/2025 How will tariffs affect your sourcing and supply chain?

We’re almost entirely in flooring today. A good portion of our sales are in carpet, which is primarily made in Georgia, so tariffs have no impact there. We don’t sell carpet online because it’s too complex to ship, but our Pro Centers handle it well. For hard surfaces, we source from North America, South Asia, Europe, Turkey, and India. We avoid concentration risk by diversifying suppliers and channels, and we don’t lock into long-term supply contracts. That flexibility helps us manage tariff changes better than those with fixed deals.

Even with higher tariffs, imports can still be cheaper than domestic production in some categories due to raw material proximity and lower energy costs abroad. We focus on patience, letting market news settle, and adjusting accordingly. Flooring remains a strong industry because it’s essential for occupancy permits, heavily tied to remodeling, and subject to daily wear and tear, ensuring recurring demand.

23/04/2025 How will tariffs affect your sourcing and supply chain?

23/04/2025 How exposed is BuildDirect to China in its supply chain?

Our exposure is minimal to none. Occasionally shipments may flow through China, but for the most part, our sourcing is from South Asia, Europe, Turkey, India, and North America. The companies most exposed are the very large players with volume requirements that force them to rely on Chinese production. Those groups are now scrambling. By contrast, our diversification insulates us from that risk.

23/04/2025 How has inflation affected flooring and carpet costs?

The flooring industry is highly fragmented, roughly a $90 billion market, so even $50 million of sales gives meaningful scale. That scale helps us secure manufacturing slots and keep costs competitive. Transportation has been the biggest challenge, but otherwise the category is not highly price-sensitive. Customers buy on value, not penny-per-square-foot shifts.

We offset some inflation through operational efficiencies, reducing overhead, and keeping resources focused on operating units. Marketing-driven inflation, companies overspending on digital demand generation when volumes decline, was less of a factor in flooring than in other industries. Overall, we’ve weathered cost pressures well.

Other

12/04/2023 Do you have any final comments before we end the call?

Thanks everyone for tuning in and following our story. We have a lot of exciting things coming, and we remain focused on the pro customer, profitability, and a clear direction. I truly enjoy working with this team every day and appreciate everyone’s hard work as well as your support in following the company.

Yes, I would add that you should stay tuned. Over the past six months, especially with Sean coming on board, we have made significant strides. There is strong activity in our pipeline, and so far our results have matched expectations for improving profitability. We are excited to see what unfolds going forward.

29/08/2023 Do financial institutions currently provide analyst coverage of BuildDirect?

No, we do not have analyst coverage at this time.

28/08/2025 Do you have any closing comments for investors?

Thank you for joining us. We appreciate your support and look forward to the rest of 2025 focused on growth. The platform is in place, and now it is about leaning into expansion and momentum. We welcome feedback and are always open to follow-up discussions. Thanks again for your time.

Personao Questions

29/08/2023 Is the blackout period for insiders over now that earnings are released?

Our trading policy specifies that the blackout lifts two full trading days after the earnings release. I confirmed with legal counsel that this timing applies here as well.

09/04/2025 What motivates you as CEO, and how do you view leading a public company?

It truly takes a village, and our team has been fantastic. I believe the customer experience will never exceed the associate experience, so we focus on supporting our team first. That foundation allows us to deliver for stakeholders across the board.

What excites me most is having a clear vision, casting it with the team, and then making it real together. We believe in the industry and have a lot of passion for building something lasting. The challenge is to stay rifle-focused on our core mission while resisting distractions. For me, the most rewarding part is working alongside colleagues with a shared mindset and commitment to the build process.

09/04/2025 Can you share more about your childhood and early influences?

I started in the flooring industry at 16, working at a local retailer as the IT person because email and computers were just coming in. The owner, Jim Simpson, became a mentor and later helped me get into spec homebuilding and eventually into Mohawk Industries. Mohawk was a gift, not only a strong company but also one that invested heavily in developing associates by letting us move across functions like marketing, finance, and projects.

Personally, I’ve always loved to build, whether houses, businesses, or teams. Even as a teenager, I remember combing the classifieds, impatient to find something meaningful to do. That drive to create and build has always been at the core of who I am.

09/04/2025 What has been your favorite mistake?

One was launching a fully installed online flooring model around 2020. Using a customer’s address, we predicted room dimensions so flooring could be sold by the room. The model worked, but customers didn’t trust it. They expected more complexity and substance in the process. The lesson was that efficiency isn’t everything, you have to bring people along emotionally, not just economically.

Another example was at Home Depot years ago. We stripped away all branding and messaging in flooring, leaving only black-and-white categories like laminate, wood, or carpet. Customers found what they wanted quickly, but sales tanked. It proved again that narrative and brand matter. That failure actually inspired me to help develop the LifeProof brand, now one of Home Depot’s largest. Both mistakes taught me that categories like flooring need storytelling and customer engagement, not just efficiency.

09/04/2025 What do you fear most?

My biggest fear is blind spots, personally and professionally. I try to surround myself with strong people and seek feedback constantly, because it’s the things you don’t see coming that can hurt you most.

09/04/2025 What do you enjoy doing outside of work?

I have four kids, which has been a huge blessing. We had them fairly young, which means now I get to do things with them like Tough Mudder races, though I mistakenly thought it was a 5K, not a 15K, and watching my teenage sons fly past me was humbling. We enjoy the outdoors, whether off-roading, golf, or other activities. My wife and I also include our kids in our lives a lot, which has given them great exposure to people, conversations, and perspectives that I hope will make them more open-minded and capable in the future.

I don’t bring them to the office regularly, but they are actively involved in conversations. Even at young ages, they’ve developed surprisingly strong points of view. I suspect one or two may become entrepreneurs themselves, but more importantly, they’ve gained confidence and perspective from being part of our journey.

09/04/2025 How often do you check the company’s stock price?

Often enough, probably every two or three days. It’s pretty far down on my watchlist. My perspective may be different because I focus on intrinsic value and what I know the business is worth, not the day-to-day swings. For me, the real priority is ensuring we convey our strategy with complete accuracy, follow through on plans, and keep strong connectivity with investors who put their trust in us.

We have a very tight float and strong insider ownership, so there isn’t a lot of free-trading stock in the market. That reduces distraction. I don’t obsess over the share price, but I stay aware of it. The focus is always on building the business, not watching the ticker.

23/04/2025 Tell us about your journey to becoming CEO of BuildDirect

I entered the flooring industry at 16 as the tech guy, handling simple computer setups as email and technology were just taking off. From there, I stayed in the industry, working in retail and then at Mohawk Industries, the largest flooring manufacturer in the world, across product development, sales, and marketing. I later joined Home Depot as a buyer, which was a formative experience.

After that, I shifted toward more entrepreneurial and high-growth companies, including e-commerce and installation services. Those roles broadened my perspective, giving me a unique view of the flooring industry, from manufacturing to large-scale installation to online distribution. It’s been a lifelong journey, and I remain deeply embedded in and passionate about the industry.

23/04/2025 Outside of Home Depot, which employer most shaped your success as CEO?

I would say Mohawk. I grew up there, starting with my first trade show at 20, when I couldn’t even order a drink. People often thought I was older because I lost my hair early, which helped me blend in. Mohawk was intentional about moving people across roles, so I went from sales to marketing to finance projects to product development, which gave me a complete perspective.

They also supported my education; I did most of my doctoral work while at Mohawk and finished at Home Depot. It was a high-development environment, the right place to build skills and gain the broad exposure that prepared me for leadership.

23/04/2025 Tell us about your journey to becoming CEO of BuildDirect

23/04/2025 Outside of Home Depot, which employer most shaped your success as CEO?

23/04/2025 Tell us about your journey to becoming CEO of BuildDirect

23/04/2025 Outside of Home Depot, which employer most shaped your success as CEO?

23/04/2025 What legacy do you want to leave at BuildDirect?

I have a deep appreciation for professional contractors. When the economy gets tough, pros keep it moving, hustling, adapting, and finding ways to deliver. Supporting them with the tools, products, and services they need is what energizes me. Today, about a third of our revenue comes from pros, a third from B2B retailers like flooring stores, and a third from large projects. My legacy would be building a footprint that consistently serves those pros and their ecosystem.

If I wasn’t doing this, I’d still be doing this, I love it that much. My goal isn’t to have my name on a building; it’s to live a purpose-driven life, work with great people, and enjoy the journey. If we succeed, fantastic. If not, the earth keeps spinning. For me, the passion and the purpose make it all worthwhile.

08/09/2025 How do you instill an owner mindset in employees and in acquired teams?

I don’t believe corporations themselves have culture, culture is the aggregate of individuals. When adding teams through acquisitions or organic growth, ensuring that new people positively influence our culture and values is critical. In screening deals, beyond inventory quality and market presence, the team members are most important because their values affect how they serve local markets and interact internally. I have passed on deals purely because of cultural concerns.

It’s difficult to assess upfront. You can use long-term incentives, options, or compensation structures, but ultimately you have to observe how people behave, do they act in the company’s best interest, make smart decisions, place bets responsibly, and manage workflow effectively? At BuildDirect, ownership is literal as well as cultural; a significant portion of our management and broader team own shares. That ownership, combined with autonomy to make decisions, helps ensure the right calls are made with the organization’s health at the forefront, not individual ego or empire building.

08/09/2025 Where did you learn to think like an investor, and how can other CEOs adopt that mindset?\

I’ve been fortunate to have strong mentors and to be a very active reader. One great book I recommend is Private Talk. It shaped how I think about vehicles for strategy. For us, the strategy is building the largest pro-focused flooring business in North America, and BuildDirect is the vehicle for that.

I’m also an investor personally, so\ I constantly think about intrinsic value, modeling assets, and making buy or divest decisions. I believe a CEO’s primary role is capital allocation, whether in a roll-up or a single-product company. Every decision comes down to where to allocate funds, inventory, marketing, or acquisitions, and whether it is capital efficient.

08/09/2025 How did you first get\ into investing, and what shaped your personal strategy?

I started early at Mohawk Industries. An RVP named Frank gave a memorable talk about personal finance, urging us to take health insurance, disability, and 401(k) seriously. That blunt mentorship stuck with me and drove me to save and invest early. Over time, I grew skeptical of index and mutual funds; too many zombie companies drag returns. I prefer building a thesis around where an industry will be in five or ten years and betting on well-positioned companies, going in early and with conviction.

That’s also how I think about BuildDirect, entering a stable, massive TAM with strong trends behind it. Acce\ss to better tools, including AI, makes analysis and arbitrage opportunities easier and more fun. My personal philosophy is to avoid passive “safety,” focus on industries with durable trends, and concentrate capital in companies that fit my thesis. Flooring has been a great example of that approach.

08/09/2025 How has your person\al strategy performed compared to benchmarks?

I wish I had adopted this mindset earlier. Since I did, the results have been fantastic. Just as with BuildDirect, having a clear thesis, focusing on intrinsic value, and being disciplined about capital allocation has meaningfully outperformed the more passive a\pproach I used in my younger years.

08/09/2025 Can you expand on your quote that great success requires a different version of the person during the building phase?

I wrote that while leaving a network group. You often meet people after success, not the 15 to 20 year earlier version who was grinding. In my early twenties, I built spec houses before the housing crash, learning step by step from a mentor 30 years my senior. That version of me was different, same person, different time and demands.

Old records are invaluable, from Andrew Carnegie’s Business to early interviews where you can see the ferocity in Jeff Bezos’s eyes. I try to surround myself with people in the fray, builders not in vacation mode. There is selection and memory bias in retrospective advice, so I balance learning from past records with spending time around those who are currently building.

BuildDirect.com: Questions to Shawn Wilson | Value Bridge

Archieve - Everything Shawn Wilson Said

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