Listing ID: 76565
Business Overview
This well-established swimming pool maintenance company provides services to the greater Denver metro area. Its niche market is homeowners’ associations (HOAs) with pools, spas, and hot tubs.
The company was founded in 1982, is heavily seasonal, and renews its customers’ annual service contracts each fall. Services include surface cleaning, opening and closing (or winterizing) pools, in-season pool equipment maintenance work and off-season pool renovations.
The business is family owned and operated. There are three year-round employees and an additional seven summer season employees. The owners have been involved since 1982 and built solid relationships with the area’s management companies. Most contracts are easily renewed. Many older pool maintenance company owners have recently retired, as these owners now intend to do as well. The Denver market is ripe for future growth under a new owner.
This is an ideal and unique opportunity for an investment-minded, entrepreneurial, or strategic buyer. Professional pool maintenance is becoming a high-tech and environmentally sensitive task requiring professionals. Significant long-term sales growth is being driven by the many market forces. The current owners will remain in the business until each of their jobs can be covered if that is desired.
Nearly all urban housing today has been – and is being – built with pools that are managed by homeowners’ associations, whether they are single family homes, condominiums, or apartments. New awareness of health concerns drives increasing demand for the many services that a cleaning and maintenance company offers. Health and fitness trends are creating a greater demand for such facilities, also requiring more services.
We have a complete Offering Summary available on this opportunity for all registered buyer prospects. We anticipate that, in addition to the seller financing stated below, that this business will qualify for the current SBA7A guaranty program of small business financing. That is thoroughly explained in the broker’s Offering Summary.
Financial
- Asking Price: $1,275,000
- Cash Flow: $390,000
- Gross Revenue: $940,000
- EBITDA: $240,000
- FF&E: $50,000
- Inventory: $5,000
- Inventory Included: Yes
- Established: 1982
Detailed Information
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:10
- Furniture, Fixtures and Equipment:N/A
Home based business with storage unit rental in downtown Denver for relevant inventory. Storage unit rental is minimal and without long-term commitment. A new owner will likely want to change the business to his/her home with strategic storage accessible to their current workforce. (Home Based)
Sellers will be available to assist and train new owner as needed.
Owners are retiring and will allow plenty of time to train a new owner.
There are a few competitors, but competition is dwindling compared to the demand. This business is in a unique position to have two individuals who are skilled enough to train apprentices in the trade. They are also of sufficient size that they can afford to train while meeting demand.
Coming out of this recession, this business is set to dominate their market. Market strategy will be discussed privately with prospective buyers.
This Business Is Home Based
Additional Info
The business was founded in 1982, making the business 40 years old.
The deal will include inventory valued at $5,000, which is included in the requested price.
Why is the Current Owner Selling The Business?
There are all kinds of reasons individuals resolve to sell companies. Nevertheless, the genuine factor vs the one they say to you may be 2 absolutely different things. For instance, they may claim "I have way too many other obligations" or "I am retiring". For lots of sellers, these reasons stand. However, for some, these might simply be excuses to attempt to hide the reality of changing demographics, increased competition, current reduction in incomes, or a variety of various other factors. This is why it is extremely important that you not depend entirely on a vendor's word, yet rather, make use of the seller's answer together with your total due diligence. This will repaint a much more practical image of the business's existing scenario.
Existing Debts and Future Obligations
If the existing business is in debt, which lots of companies are, then you will need to consider this when valuating/preparing your deal. Numerous operating businesses finance loans in order to cover things like supplies, payroll, accounts payable, so on and so forth. Keep in mind that occasionally this can suggest that revenue margins are too small. Numerous companies come under a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may additionally be future commitments to consider. There might be an outstanding lease on equipment or the structure where the business resides. The business might have existing contracts with suppliers that have to be fulfilled or might cause fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do operating businesses in the area draw in new consumers? Many times, businesses have repeat customers, which create the core of their everyday profits. Specific aspects such as new competition growing up around the location, roadway construction, and employee turnover can affect repeat clients as well as negatively impact future incomes. One vital thing to take into consideration is the placement of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the main road? Undoubtedly, the more individuals that see the business regularly, the greater the possibility to develop a returning consumer base. A last thought is the general location demographics. Is the business placed in a largely populated city, or is it situated on the outside border of town? Just how might the regional typical family earnings effect future revenue prospects?
