Swimming Pool Company: Leveraging Deep Industry Expertise to Sell During the Pandemic, Enabling the Owner to Retire
Industry
Location
Business Broker
Brian McInerney
Situation
After more than 30 years of owning and operating a pool installation and renovation company based in Middlesex County, MA, the owner was ready to retire and spend more time with his children and grandchildren. With a focus on quality work, integrity and excellent customer service, the owner had successfully built this business over three decades, providing residents of New England with a full service offering that included building and renovating in-ground pools, as well as associated landscaping and plumbing.
BayState Business Brokers’ Approach
Knowing that BayState Business Brokers had deep expertise in this industry, the owner enlisted the company to help sell his business. The timing of this was January 2020, just before the pandemic hit. BayState leveraged its proven, successful process of marketing this business to its base of qualified, vetted buyers. Over the months that followed, BayState was not only able to successfully secure an interested, qualified buyer, but it did all of this during the pandemic, a time of great change and uncertainty. One of BayState’s key outcomes was to significantly increase the business valuation of the company. Leveraging its vast experience in this market segment, BayState’s broker worked closely with the bank’s appraiser, helping him to recognize additional assets, which significantly increased his initial valuation of the company. Those assets included future jobs that were on the books, as well as heavy construction equipment. The broker also provided the buyer with excellent guidance on securing an SBA loan, as well as advice on how to grow and scale this business. The buyer had owned businesses before, but was new to this particular industry.
Results
BayState’s expertise and proven approach resulted in the successful sale of this business at the owner’s asking price. While it was unclear how the pool industry would fare during this time, it became clear over time that home improvement businesses were booming and this business was no exception. During the timeframe when the transaction was underway, the business actually doubled in size! The new owner was thrilled with the purchase and has approached BayState to seek out new acquisitions in this industry. As for the original owner, he is now happily retired, enjoying quality time with his family and grandchildren.
