Listing ID: 79263
Over 40 years in business, this Pool Service Company provides service to high end accounts in Palm Beach County. Many clients (30%) are on Palm Beach Island. Over 100 loyal accounts which average $120 monthly per account, higher than the industry average. Many accounts have been through multiple buyouts and maintained their loyalty. Owner manages the field, does sales calls and billing, all of which takes about 20 hours per week. Owner subcontracts other services such as leak detection and surface refinishing for a commission. Pool cleaning is performed by two Certified Pool Operators who are knowledgeable and experienced with over 5 years working for the company. Employees have been assigned company pickup trucks with equipment, such as Hammer-Head Vacuums, which allows them to start their workday from their own home and take trucks home every day. High margin business operates as a home-based business which results in at least $12,000 a year savings in lease costs. Two pickup trucks, a trailer, two HammerHeads and other equipment/tools are included in the price. There is a lot of potential for growth through actively promoting repairs to the current clients and developing new service accounts. Year to date sales show that 2021 will end with sales exceeding $ 280,000 for the year. Great investment for a startup individual or as an add on to an existing pool service business.
For a qualified Buyer, the business has been prequalified for an SBA loan. Buyer must currently be active or must have had previous experience in this field to qualify.
- Asking Price: $188,000
- Cash Flow: $108,990
- Gross Revenue: $280,814
- EBITDA: N/A
- FF&E: $10,000
- Inventory: $1,000
- Inventory Included: Yes
- Established: 1981
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:2
- Furniture, Fixtures and Equipment:N/A
Seller provides training for 4 weeks at no cost.
Owner is pursuing other business opportunities.
The venture was established in 1981, making the business 41 years old.
The transaction does include inventory valued at $1,000, which is included in the listing price.
Why is the Current Owner Selling The Business?
There are all sorts of reasons why individuals choose to sell businesses. Nevertheless, the real factor vs the one they tell you may be 2 totally different things. For instance, they might state "I have way too many various commitments" or "I am retiring". For many sellers, these reasons are valid. But, for some, these may just be excuses to try to hide the reality of changing demographics, increased competitors, recent reduction in incomes, or a variety of various other reasons. This is why it is very important that you not rely entirely on a seller's word, but instead, use the vendor's solution in conjunction with your general due diligence. This will paint an extra reasonable image of the business's present situation.
Existing Debts and Future Obligations
If the current company is in debt, which numerous businesses are, then you will have reason to consider this when valuating/preparing your deal. Lots of operating businesses finance loans so as to cover items like supplies, payroll, accounts payable, so on and so forth. Bear in mind that in some cases this can imply that revenue margins are too small. Many organisations fall into a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may additionally be future commitments to consider. There may be an outstanding lease on equipment or the building where the business resides. The business might have existing contracts with vendors that need to be fulfilled or may lead to fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do operating businesses in the location bring in new customers? Most times, operating businesses have repeat consumers, which develop the core of their everyday profits. Certain variables such as brand-new competition growing up around the location, roadway building, and personnel turnover can influence repeat customers as well as negatively influence future incomes. One essential point to think about is the location of the business. Is it in a very trafficked shopping center, or is it hidden from the main road? Obviously, the more people that see the business often, the greater the possibility to develop a returning consumer base. A last idea is the general location demographics. Is the business located in a largely populated city, or is it situated on the edge of town? Exactly how might the local average family earnings effect future earnings prospects?