Investors Reveal How They Value Pool Construction Firms—And Why They're Hot
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.
March 29, 2022
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
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