BuildDirect (BILD.V): Omnichannel Flooring Disruptor with Pro-Driven Growth

I join Mark Zaret from Teraz Fund to have a conversation with CEO Shawn Wilson of BuildDirect (TSX-V: BILD, OTC: BDCTF). This MicroCap Business Breakdowns discussion took place live on March 6^th, 2025, on the MicroCapClub Community. You can listen and participate live by joining our community.

BuildDirect is focused on growing its presence in the North American flooring market through the organic development and acquisition of profitable brick-and-mortar locations known as ‘Pro Centers’.

BILD is well-positioned to consolidate the highly fragmented flooring industry, which is dominated by small independent operators. Management’s goal is to expand from 9 locations to 50+ locations using a capital efficient, high IRR growth strategy. In most cases acquisitions can be made at 1-3x EBITDA, which means a 2-year payback or 40% IRRs.

BILD has strong momentum under its new leadership, with CEO Shawn Wilson. He has spent his entire career in the flooring industry. Over the last two years he has reduced BILD’s cost of capital by renegotiating loans, streamlined their software systems, and focused on repeat pro customers (contractors) while expanding with new locations. These changes were made without harming BILD’s capital structure and with strong backing from major shareholders—three multi-billion-dollar entities that control ~80% of the shares.

At a $45m market cap with $70M run rate sales and positive EBITDA, the current market cap is uncommanding. After two years of turning the business around, 2025 will be the start of "growth" mode. Strong leadership, a tight share structure, and improving business fundamentals could set the stage for institutional discovery over the next few years.

You can listen/watch this business breakdowns on Spotify, Apple Podcast, and YouTube below:

MicroCap Business Breakdowns (MCBB) is a monthly program where we invite leaders of unique microcap businesses to have in depth conversations with the MicroCapClub member/investor that knows the business best. In each conversation we look to drill down into the history, business, strategy, vision, and bull/bear case. The MicroCapClub community can tune in live and ask questions. We publicize each episode two weeks after the live discussion. Not part of the MicroCapClub community? Join Us.

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