Michael Girdley (@Girdley), Bill D’Alessandro (@BillDA) and Mills Snell (@thegeneralmills) are joined by Jake Greer (LinkedIn) to discuss two ool 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.
- Deal 1: Custom Pool Builder
- Post mortem situation: How could it fail?
- Risk: No mentioning of customer concentration
- Why are they selling?
- What do their assets tell us? Are they self performing?
- The market matters a ton: understanding today's situation
- What do we like about it?
- Is it overvalued?
- Risk hedging alternatives
- Growth strategy & opportunities
- What kind of Partner & capital are they looking for?
- Deal 2: Pool Construction Business
- Location importance & seasonality
- "Normalized" vs "adjusted" EBITDA
- How does the COVID boom affect this business?
- Retail Store: You need an outlet to sell consumable pool products
- It's always worth asking the seller why he has a retail store