Profitable Pool & Spa Business
- Asking Price
It has been a great run for the owners of this successful West Michigan business which provides installation, maintenance and repair services for pools, spas and hot tubs. After 17 years of successfully running the company, the owners are ready to sell the business. They are committed to supporting the continued growth of the business which includes comprehensive transition training for a new owner. An experienced manager is also available to stay on with the new owner to help run the operation if desired.
Using state of the art equipment, the company offers a variety of services including:
• Pool and spa installation • Pool opening & closing • Weekly cleaning & service • Liner replacement • Leak detection & repair • Hot tub repair & relocation
The company also provides computerized water testing for customers and is an authorized service center for several major brands of hot tub and pool equipment.
The customer base of higher income clients is long term and loyal. Despite minimal spending on advertising, the company experienced excellent revenue growth in 2021 and 2022 with 2023 on pace to establish new revenue and profit records. The business has an outstanding website which provides customers insight into its services and capabilities.
The company currently has its focus on the service side including new liner installations, refurbishing pools, and equipment replacements. Annual cleaning and maintenance of pools & spas helps retain customers long-term. Investing more resources to market the sale of new pools and hot tubs, along with annual maintenance contracts, could offer excellent growth possibilities for a new owner.
Located in the heart of a desirable and growing West Michigan community, the business occupies a leased 1000 square foot facility. All assets are included in the sale including vehicles, office furniture, equipment, tools, and computer equipment.
Over the past three years the business has averaged annual revenues of $ 370,000 which resulted in an average annual SDE (SDE = Sellers Discretionary Earnings, the normalized, historical, annual cash flow available to pay an owner-operator and service debt) of $ 94,000 for the same period. In 2022, SDE reached a high water mark of $110,000 which was an increase of 30% from 2021’s SDE.
Using a SDE multiple of 3.6x the business is attractively priced at $ 349,000. The sellers envision an asset sale in which they retain cash and A/R while retiring all liabilities. For a qualified buyer, the sellers will carry a mid – five figure seller note.
A typical deal for the purchase of the business looks great: $ 35,000 (10 % of the purchase price) buyer cash, a matching $ 35,000 seller note, and the balance financed by an SBA term loan. Total debt service will be approximately $ 45,000 resulting in a post debt service discretionary cash flow for the buyer of approximately $ 65,000 annually in 2022.
If you are searching for a profitable business with great cash flow and priced under $ 350,000, this could be the company for you. For more information on this outstanding opportunity please contact Steve Huntley at 616 902 0898 or [email protected]
- Reference ID
- Retail, Sales Business, Services
- West Michigan