Annual Revenue: $5,624,962
Net Cash Flow: $1,433,413
Location: Southeastern US
The company is a licensed residential and commercial pool contractor with 20 years of experience in the industry. It specializes in custom concrete swimming pool construction, complete pool renovation, and pool resurfacing. It also offers repairs and equipment replacement services as needed (but does not provide maintenance or cleaning services). It is locally operated and is the largest pool builder in its area.
The company has a stable, high-margin business that generates a 38% gross margin and 26% EBITDA margin, and has achieved a 35% revenue CAGR from 2017 through the first half of 2021. It also has a robust new business pipeline worth over $10M.
Employees: The company has 19 full-time employees including the five owners.
Competition: Being locally operated, the company enjoys a relative competitive advantage over its largest competitor that is located 40 miles away. Smaller competitors do not pose much of a competitive threat, as the company’s large size positions its brand as strong, professional, and stable.
Transition Support: Four of the five owners are willing to continue working with the acquirer after the sale, based on negotiated terms. The company has also hired an Operations Manager recently, which gives it excess capacity to manage it post-closing without the addition of new personnel.
Reason for Selling: One of the primary owners wants to retire.
Growth: Pools have gone from a luxury to a requirement and have become a make-or-break deal in their residential market. Currently, fewer than 10% of houses in their area have a pool, which indicates the growth potential. The new owner can leverage the company’s strong brand awareness to acquire new customers with minimal marketing and continue to grow. Also, by opening a second location at an estimated cost of ~$200k in a nearby area (where the company does not serve), the new owner can double the area served and hence the revenue.