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Investors Reveal How They Value Pool Construction Firms—And Why They're Hot

Article-Investors Reveal How They Value Pool Construction Firms—And Why They're Hot

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This revealing video shows how investors evaluate pool and spa construction firms for purchase and the clues they look for including markets, seasonality, potential and demand shifts.

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. 

Topics coverd:

  • 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

Click here to watch the video. 

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