Pool Construction Companies Are Hot. Are They a Good Investment? - Acquisitions Anonymous e77

Michael Girdley (@Girdley), Bill D’Alessandro (@BillDA) and Mills Snell (@thegeneralmills) are joined by Jake Greer (LinkedIn) to discuss 2 Pool construction businesses for sale. We evaluate assets & the clues that provides on the functioning of the business, different markets, seasonality, how to evaluate potential, COVID & demand shifts and much more.

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Show Notes:

(0:00) Intro
(0:53) Deal 1: Custom Pool Builder
(4:22) First thoughts
(5:00) Post mortem situation: How could it fail?
(6:34) Risk: No mentioning of customer concentration
(8:21) Why are they selling?
(9:31) What do their assets tell us? Are they self performing?
(10:58) The market matters a ton: understanding today's situation
(14:02) What do we like about it?
(16:30) Is it overvalued?
(18:26) Risk hedging alternatives
(20:10) Growth strategy & opportunities
(23:18) What kind of Partner & capital are they looking for?
(25:25) Deal 2: Pool Construction Business
(26:49) Location importance & seasonality
(29:21) "Normalized" vs "adjusted" EBITDA
(31:10) How does the COVID boom affect this business?
(33:58) Retail Store: You need an outlet to sell consumable pool products
(35:40) It's always worth asking the seller why he has a retail store

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Past guests on Acquanon include Nick Huber, Brent Beshore, Aaron Rubin, Mike Botkin, Ari Ozick, Mitchell Baldridge, Xavier Helgelsen, Mike Loftus, Steve Divitkos, Dzmitry Miranovich, Morgan Tate and more.

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Additional episodes you might enjoy:

#62 Two Landscaping Businesses for Sale - Mike Loftus CEO of Connor's Landscaping
#66 Analyzing Software Businesses for Sale with Steve Divitkos, experienced industry CEO
#42 $900k Moving and Storage Company / $500k Rural Mini-Storage
#61 Two Manufacturing Businesses for Sale - Brent Beshore - Founder and CEO at Permanent Equity
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• Do you love Acquanon and want to see our smiling faces? Subscribe to our Youtube channel.
• Do you enjoy our content? Rate our show!
• Follow us on Twitter @acquanon Learnings about small business acquisitions and operations.

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