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Leading Swimming Pool Construction Franchise S. OC

Irvine, Orange County, California, United States
$3,795,000

Business For Sale Details

Updated on February 15, 2022 at 11:43 pm

  • Property ID: poolcons
  • Price: $3,795,000
  • Building: 800 sq. ft.
  • Land: 4300 sq. ft.
  • Type: Pool Service
  • Status: Business For Sale
  • Revenue (Annual): $7,000,001-$10,000,000
  • Cash Flow (Annual): $1,000,001-$3,000,000
  • FF&E: 10000
  • Year Established: 2019
  • Reason For Sale: Other Interests
  • Employees: 6
  • Revenue (Yearly): 8,065,000
  • Cash Flow (Yearly): 1,359,000

Description

The Company is an established and well-respected franchise business that specializes in swimming pool construction. Although the Company has the ability to expand its business into remodel construction, commercial construction, retail sales, service and maintenance, etc., the Company is currently focused and working primarily on new construction with homeowners of single-family homes. The Company is poised for continued growth in South Orange County, which has one of the most dynamic housing markets in the United States.

With booked sales surpassing 7MM in its first full year of business (2020), and more than 7MM in sales in 2021, the Company’s total sales are over 16MM since opening shop in mid-2019. The Company’s total revenue of 12MM+- in 2.5 years of business is well diversified across multiple projects, with the average contract written at around 135K. In a market/industry where 10% EBITDA is better than average, the Company has an EBITDA of 16% over the past 12 months.

The Company attributes its impressive growth to the unique processes that have been developed, implemented, and proven over the past 30 months. The quality of work, strong team, as well as the Company’s history and image are the reasons why customers rave about the Business.
The Company has not spent hardly any marketing dollars to achieve its high growth, which presents an opportunity for the new owner to grow this business more aggressively. The new owner can allocate additional funds towards marketing, expand into other scopes within the industry (service, commercial, retail, remodels, etc.), and focus on some of the larger market cities in the area (Newport Coast, Coto de Caza, Corona Del Mar, Laguna Beach, etc.), all of which are located within the exclusive/protected territory.

The Business currently operates out of a small office/showroom with 6 employees (2+ owner in office, 3 in the field). The Company has a well-established team led by a Project Manager, who has been in the industry for over 17 years.

The Company is highly differentiated as follows:

• Projected growth and profitability based on a robust pipeline
• Established CRM with extremely detailed notes for 700+ leads/potential customers
• Proven sales process that yields a 20%+ closing ratio compared to the std. <10%
• Proven business process that yields about 16% EBITDA compared to std. <10%
• Nearly 4MM in receivables and WIP to complete projects that have signed contracts
• Managed by an experienced PM and team with well-defined roles and job responsibilities
• Great demographics in the exclusive territory of South Orange County, CA
• Ranks extremely high among its peers (#2 in the country of 26 offices)
• Received highest of honors Legacy Trophy in 2020, and surpassed those numbers in 2021
• Strong name brand recognition and reputation, dating back 70 years

IBISWorld estimates that over 60% of total industry revenue is generated through the construction of swimming pools for new single-unit homes Consequently, the industry has benefited from the residential market’s growth during the current period. Over the five years to 2021, the number of housing starts is expected to increase at an annualized rate of 6.1%, which was boosted by a 7.0% increase in 2020 amid the coronavirus pandemic. Similarly, the value of residential construction is expected to increase at an annualized rate of 4.2% over the five years to 2021, as the metric rises 6.1% in 2020 and a further 13.9% in 2021. Another key economic driver, the share of households earning more than $100,000 is expected to grow at an annualized rate of 1.9% over the five years to 2021. However, this also includes a decline of 1.2% in 2020 alone amid the coronavirus pandemic.

Over the five years to 2026, the Swimming Pool Construction industry is expected to expand, primarily as a result of an expected recovery in the economy Rising demand from homeowners and home developers is expected to foster this expansion. As the unemployment rate declines over the next five years due to the expected economic recovery from the COVID-19 (coronavirus) pandemic in 2020, per capita disposable income is expected to increase at an annualized rate of 2.5% over the five years to 2026.

Business For Sale Location:

  • Location: Irvine, Orange County, California, United States
  • City / County: Irvine
  • State / Province: California
  • Country: United States

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Vasilis Georgiou
Vasilis Georgiou
949-753-2825949-292-6718
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