Sell a Pool Service Business

How to Sell My Pool Service Business

Maybe you built your pool service business from the ground up, or maybe it was handed down to you by your loving parents. No matter how you acquired this business, it is likely that you have worked extremely hard to keep it afloat in these turbulent times, And if you are honest with yourself, you can see that there are three choices for what happens next with your company. If you love it and still have the energy, you can keep your company indefinitely. Another option is to pass it on to a family member. And finally, you could sell it to a worthy buyer. It stands to reason that for most business owners, at some point they will wonder how to sell pool service business because you cannot hold onto it forever.

The pool service industry is a victim of the current economy, with the difficulty in finding reliable workers and the high cost of materials as well as supply chain issues to get the materials to you. For these and other reasons, it is imperative that you investigate how to sell your pool service business in the most expedient manner.

If you have been asking yourself, “How can I sell my pool service business,” then taking a close look at the variables will help you ascertain whether the time is right for you to jump into a sale.

IMMEDIATELY

This group consists of people who are ready to sell today and want to be completely done with their business in 6-12 months. After the sale and a short transition time to help the new owner, you will be off to retirement or other employment pursuits.

SOON

This group wants to sell in 2-5 years, and might even be interested in a partial sale so they can build equity with the new owner before selling the business outright later down the road.

LATER

This group includes people who are looking at a long-range plan of more than five years. Their sole focus should be on building cash flow so that when they are ready to sell, they will reap a higher benefit.

Be True to Yourself

If you think you are ready to sell your pool service business, you need to take a good long look in the mirror. When making such a huge personal move, you need to understand your own motives. Consider your physical ability to continue to run your business, as well as the stress levels associated with keeping it. Think about the other members of your family and whether your spouse might be ready to retire or you might have a new grandchild on the way. Finally, investigate your future goals and passions, whether they be business ideals or hobbies, to ascertain what your next best step is.

Understand Your Business

Is your company at a high point? If this is the case, you might be asking yourself “Should I be selling my pool service business?” A buyer wants a company that is experiencing positive cash flow and is achieving some profitability. If you are on the top of your game, now might be a good time to take the plunge. On the other hand, there might be strategic buyers looking into pool service companies to move forward on a particular growth strategy. To sell your pool service business, you need to understand all of the swirling variables to determine the best time to sell.

Take a Look Below the Surface

Along with the parameters of your particular company, look more globally at the industry to see how it is moving and changing. In the pool service industry, for example, it can be difficult to find workers, and even more difficult to hang on to them. Often, supply chain issues can hamper the daily grind, and items that you need for your pool service business are more expensive. If you want to sell your pool service business, you need to look far and wide to decide if it is the right time to sell.

Dive into the Deep

If you want to sell your pool service business, you also need to understand what is going on in the world at large. Perhaps inflation is rearing its ugly head, or there is talk of a recession looming. These negatives can truly affect the sale of your business. But on the more positive side, there are larger companies willing to acquire smaller companies and help them grow. Whether diversifying services, creating a training and recruiting process that is more professional in nature, or growing geographically, keep your eye on what is going on in the world if you are considering selling pool service business.

What Comes Next?

If you are currently working with family members, then you may have thought that one of your children would naturally take over the pool service business someday. But it doesn’t always work that way. If your kids aren’t interested in the family business, it is often too difficult for other staff or managers to take over. So that leaves the sale of the business as the most viable option when you are ready to retire.

All the Way

“How to sell my pool service business” has been a mantra for you lately, consider a full scale sale. Just like the name suggests, this sale will have you transitioning 100% of your business for a set price, and the sale will usually take between 6-9 months to complete. Although you will hand over the entire business at once, you will stay on for a short transition time to help the new owner. To sell pool service business, make sure you discuss the compensation and the roles of both buyer and seller completely so that the sale goes smoothly.

A Bit at a Time

If you are more interested in a partial sale for your pool service business, then you will sell a majority of the business (often 70-80%) while still maintaining equity ownership. In this arrangement, you will generally stay on for a prescribed amount of time (often 2-5 years) to continue to build the company and increase the cash flow with the new owner. You will bank some money from the original sale, build more equity in the business, and then take a “second bite of the apple” when you complete the sale. Selling pool service business in this way can be the best of both worlds.

Down the Road

If you are content to stay and run your business for the foreseeable future, then you will probably not be interested in selling for at least five years. Take the interim time to maximize your cash flow, so that you can make a more lucrative sale when the time comes. With a higher cash flow comes a higher multiple, and this will be a positive for your bottom line down the road.

Why Work With Brentwood Growth

Access to Buyers

Over 400 private equity firms and consolidators that are actively looking to purchase.

Confidentiality

Ensure the sale of your business remains confidential to avoid disruptions for you.

Industry Expertise

More than 20 acquisitions with transactions from $80 million with an average of $4 million.

Valuation

Learn the value of your business and receive support with pricing to the market.

Negotiation

As your mediator, we work with you and the buyers to make sure both parties are satisfied.

Experience

Lead by a team with 75+ years of experience. Our experience ensures a smooth experience.