In this episode, CJ interviews Philip Brenckle, CFO of West Shore Home, a company that's revolutionizing the way that people are remodeling their homes. Phil shares insights on the home remodeling market, an unconsolidated industry with a total addressable market (TAM) of $500 billion. He explains how West Shore Home is growing its TAM by meeting customers where they are, before shedding light on the company’s model and its direct-to-consumer component. Phil dives into the role of credit in home remodels and West Shore Home’s financing module. He also breaks down the average split between labor and materials, why the company chooses to work with W2 employees over subcontractors, and how they determine pricing. Additionally, Phil talks about how M&A is part of their strategy, the types of acquisition deals West Shore Home does, and why you should only work with great advisors, before giving tips on how to effectively build relationships with banking partners. 

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Mercury is a financial technology company, not a bank. Banking services provided by Choice Financial Group and Evolve Bank & Trust®; Members FDIC.

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TIMESTAMPS:(00:00) Preview and Intro(02:50) Sponsor - Maxio | Leapfin(05:59) West Shore Home’s TAM(09:07) Growing the TAM(12:52) The D2C Nature of West Shore Home(16:24) Home Remodels and Credit Financing(18:53) Sponsor - Planful | Mercury | NetSuite(21:22) How Credit Works at West Shore Home(23:45) The Cost of a Financing Module(28:56) W2 Employees Versus Subcontractors(31:01) The Split Between Labor and Materials(34:31) Determining Pricing(37:31) M&A and Consolidation in the Home Remodeling Industry(42:29) Structures West Shore Home Uses for M&A Deals(45:29) Why You Shouldn’t Cut Corners on Great Advisors(48:58) Tips for Working With Bankers(52:10) Long-Ass Lightning Round: Extreme Ownership(55:08) Finance Software Stack(56:29) Craziest Expense Story(57:55) Closing Statistics on the Home Remodeling TAM

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