BuildDirect.com Technologies (BILD) investor relations material

Strategic focus and acquisition model

• Focused on acquiring profitable, fragmented specialty distributors, primarily in flooring, and integrating them into a tech-forward platform to leverage cross-selling and procurement efficiencies.

• Emphasizes omnichannel presence, combining brick-and-mortar and e-commerce, which is unique in heavy building materials.

• Targets businesses at 1x-3x EBITDA, capitalizing on industry fragmentation and retiring owners with limited competitive buyers.

• Integration is rapid and streamlined, with most due diligence and change management completed pre-close.

• Synergies are primarily unlocked through direct procurement and inventory normalization, driving EBITDA uplift and cash flow conversion.

Industry landscape and growth opportunities

• Flooring industry is highly fragmented, with over 15,000 independent businesses and 65%-70% owned by small operators.

• Market is driven by residential remodels, providing stability and less sensitivity to construction cycles.

• Low innovation in flooring ensures stable product mix and consistent demand, making it attractive for roll-up strategies.

• Significant opportunity exists due to wealth transfer from retiring owners and lack of large consolidators.

• Expansion into adjacent categories like cabinets and tile increases total addressable market and cross-selling potential.

Financial structure and operational strengths

• Acquisitions are structured to include working capital, mainly inventory, with purchase price reflecting inventory levels.

• Platform is designed for scalability, with lean corporate overhead and minimal ongoing CapEx or R&D requirements.

• Targets a 25% EBITDA uplift per acquisition, measured and modeled during due diligence.

• Capital structure is tightly held by three main family offices, management, and a small group of others, with supportive debt facilities.

• Team has deep industry expertise and strong relationships, enabling effective deal sourcing and integration.