Purchasing Pool Construction company prior to possible recessionary period

August 08, 2022
by a searcher from Central Michigan University - College of Business Administration in Grand Rapids, MI, USA
I am curious how people are underwriting deals where income is very project based, but also based greatly on discretionary spending. I have a pool construction company I am looking at that has obviously done very well over the last two years, but am struggling to wrap my head around a fair multiple and potential due diligence items to focus on.
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA
Personally I am bullish on the pool industry. I think since Covid there has been a renewed desire for people to control their own swimming habits and certainly in warmer climates pools remain very popular.
Please keep in mind that if you do look to use some sort of seller earn-out, you typically cannot do that in a traditional sense if you use SBA financing. You could build some into a forgivable seller note, but the full purchase price must be decided prior to closing for an SBA 7A loan. If you need additional assistance please let me know. I can be reached at redacted and I have financed pool supply and construction companies in the past, so I know the industry.
from University of Colorado at Boulder in Georgetown, CO 80444, USA