sell your pool business

FREQUENTLY ASKED QUESTIONS BY A SELLER

 

The 4 different types of listing agreements

 

Selling your pool route with the Pool Pros team, is a very easy, simple process that we have perfected throughout the last several years.

 

Our proven process of successful route selling applies if you are selling 10 or 10,000 accounts. 

 

How much is my route or business worth?

Calculating your business or routes value is typically based on two methods. these methods are substantiated by closed deals within the last 24 months. 

 

Method 1: Most common because you are not selling all of your business, or your tax returns don’t reflect a higher valuation in method 2

10-15 times the gross monthly pool service amount is the typical range based on several variables.

10 times the gross monthly pool service amount  – selling to an experienced pool guy and does not need training or equipment.

12 times the gross monthly pool service amount  – selling to an unexperienced person getting into the pool industry and needs 30 days hands on training, and 180 days phone support. 13 times – selling to an experienced or unexperienced person getting into the pool industry and needs 30 days hands on training, and 180 days phone support, have a tight route provide equipment ie Hammer Head , brushes , poles , nets)

14 times the gross monthly pool service amount – selling to an unexperienced person getting into the pool industry and needs 30 days hands on training, and 180 days phone support

have a tight route provide equipment ie Hammer Head , brushes , poles , nets, and a vehicle.

15 times the gross monthly pool service amount – selling to an unexperienced person getting into the pool industry and needs 30 days hands on training, and 180 days phone support

have a tight route (all in one zipcode or development) provide equipment ie Hammer Head , brushes , poles , nets, and a vehicle.

 

Bonus points to get a higher valuation:

All of the accounts are in one development, or zip code

There is a long history of “Goodwill” with the name of the business you are buying

Good Will Definition

Goodwill Explained

The value Furniture Fixtures and Equipment (FFE) does the company own the pool 

 

 

Method 2:

 

One to Five years net income or  "owner benefit" (what you pay taxes on to the IRS) and are substantiated by audited tax returns

Most pool companies do not have tax returns that make the sale price higher than option 1.

Here is a link that explains the multiple method #2 in more detail

You would have a substantially greater selling price if this method can be proven. 

 

 

 

The commission we usually charge is $1,000 or 10% of the purchase price, whichever is greater.

To sell your business on the open market, you will want me to co-broke with other Brokers. This is where one Broker represents the buyers, and the other Broker represents the sellers. Each Broker will receive 50% of the agreed upon commission.

 

Link to Listing Agreement

 

Question: what are the typical commissions that brokers charge?

Answer: typically, They will charge a minimum commission of $10,000, or charge 12-20% of the sales price, depending on the sales price. REMEMBER, free trade means that Brokers can ask for any commission that they want, as long as the seller agrees. 

Question: Are all terms and conditions to a listing agreement  negotiable?

Answer: Yes All terms and conditions are negotiable, don't let the "other brokers" trick you to believing anything different, especially the Transaction fees.

Question: With your low commission, do you charge a transaction fee?

Answer: NO. A transaction fee is a cost that other brokers will try to push on you so they can make more money on you. The only fee you pay is $1,000 or 10%, which ever is greater. PERIOD !

Question: Do you put everything in writing?

Yes, All listing agreements are in writing and signed by all parties.

Question: How long does it take for you to sell my business?

 

 

It depends on several criteria. Asking price, time of year, do you charge stabilizer, how close are the pools, how negotiable are you with the terms.

Asking/Selling price typically should be ten times the monthly gross service if you provide the following:

90 day warranty, 

Full service pools are over $75 each

Stabilizer is charged 2x per year (or charged in the monthly service) 

1 week training

 

Asking/Selling price typically should be Twelve times the monthly gross service if you provide the following:

90 day warranty, 

Full service pools are over $75 each

Stabilizer is charged 2x per year (or charged in the monthly service) 

30 days hands on training

180 days phone support

 

Asking/Selling price typically should be Thirteen to Eighteen times the monthly gross service if you provide the following:

90 day warranty, 

Full service pools are over $75 each

Stabilizer is charged 2x per year (or charged in the monthly service) 

30 days hands on training

180 days phone support

Licensing Assistance

Vehicle(s)

Service Equipment

Computers

Software

Supplies

Chemicals

Goodwill (intangible assets like a phone number, company name, storefront, etc)

 

 

 

If the pools are centrally located where it is within 1 mile from stop to stop, there is a stabilizer charge twice a year for at least $35, and the pools are priced accordingly to the industry standards, We have a much easier time selling them. I have sold routes like this in less than a week.  50% of my listings don’t even make it on the website because there is a buyer waiting. Typically there are more buyers than sellers, that’s why we are reaching out to you.

When I get a new listing, it gets automatically emailed to 2000+ interested buyers and sellers. This allows the sellers and buyers to see what is currently on the market.  

We also put your listing on 5 different websites i currently use.

Drop us an email:

Listings@thepoolpros.com

 

Question: How long do I have to list my business with you?

Typically 6 months.

I also work with companies by having an agreement with only a particular buyer. You can sell your company or keep your company, but Let me show your company to someone and if they buy it, I am entitled to the predetermined commission.

Question: What are your qualifications to sell my pool business?

Answer : We are a team of Licensed Professionals. As a team we have over 20 years experience in the Real Estate profession, 25+ years experience in the Florida Swimming Pool and Spa industry, a Certified Public Accountant, National Swimming Pool Foundation Instructor, Certified Commercial Pool Contractors and you can verify this on www.myfloridalicense.com

We have been providing Continuing Education, Certifications, and licensing Courses thru our sister company www.1ExamPrep.com  since 2001 by our head instructor Rob Estell

Please verify my, or anyones Florida Licenses at My Florida license .com

 

What gives you the extra advantage over the competition?

I have been a pool service contractor since 1999. I have met, taught, worked with or for almost every person in the South Florida pool industry. I still have a personal relationship with everyone if they are in the . When try to sell or help you buy a business, I know who runs a successful business and who doesn't. I only take listings that I can sell without and disputes. If you are looking for a specific business in a certain area, I know 90% of the service companies in the area, and will contact them to find you EXACTLY what you want. 

 

We also have a closing package that is unmatched by any other broker. Most of the brokers don’t even provide the buyer with anything to help them with the continued success in business.

Remember, the more you succeed, the more opportunities we as a full service brokerage and school have to assist you.

 

 Question: Rob you are the most qualified to sell my pool business, what is my next step?

Answer: email us at Listings@thepoolpros.com , call Marie at 954-256-0713 and be prepared to fill out the forms below

Listing questionnaire

Listing agreement

The more information you provide, the faster your company will sell. Most buyers do not have a clear picture of your business and will need this information to make a choice to buy YOUR business rather than another, MORE PRESENTABLE, but perhaps not as good business.

I am looking forward to speaking with you about this.

 

 

Can you recommend an Attorney that has experience in these transaction?

Yes, you can find them on this page

 

 

 

Rob Estell Rob@thepoolpros.com

ASPECT REALTY

Better Business Bureau A+ Accredited   

1881 N. University Drive #102

Coral Springs, FL 33071

561-441-9932  Fax 561-952-4703

I have several Buyers & Sellers ready to go! Give me an opportunity to sell your excess accounts, or business. Let me help you get into one of the Most Profitable Industries, the Swimming Pool Industry!