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thetigerfan225
Member since Jun 2014
4 posts

Selling BR Pool Construction Company.. where do I start?
Hi guys,

I'm looking to sell my business, and one "business brokerage" firm in Baton Rouge is a joke. Just check their reviews.

I'm putting my company up for sale that did ~$310k gross with about ~$150K netted in 2017.

Any ideas with private listings? I'm thinking it can be a perfect side business for someone who is newly retired, or just looking for a change.

We're growing quick, with great references and marketing presence.

Any ideas on how to market it? We have so far $50K on the books for next year, and a few pending projects that will close.

Thanks


lnomm34
USA Fan
Louisiana
Member since Oct 2009
10427 posts

re: Selling BR Pool Construction Company.. where do I start?
Try Tigerdroppings.com


Oh, wait. . . . you already did.


thetigerfan225
Member since Jun 2014
4 posts

re: Selling BR Pool Construction Company.. where do I start?
Yep


lnomm34
USA Fan
Louisiana
Member since Oct 2009
10427 posts

re: Selling BR Pool Construction Company.. where do I start?
How much you want, bruh?


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wickowick
LSU Fan
Head of Island
Member since Dec 2006
37631 posts

re: Selling BR Pool Construction Company.. where do I start?
I got tree-fiddy...


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Cdawg
Houston Astros Fan
TigerFred's Living Room
Member since Sep 2003
49824 posts
 Online 

re: Selling BR Pool Construction Company.. where do I start?
Swimming pools?

Just construction? No maintenance/service contracts?


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b-rab2
LSU Fan
Lafayette
Member since Dec 2005
11583 posts

re: Selling BR Pool Construction Company.. where do I start?
biz buy sell . com


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00
southernelite
McNeese State Fan
Dallas
Member since Sep 2009
49972 posts

re: Selling BR Pool Construction Company.. where do I start?
Craigslist


gpttigers
LSU Fan
Katy, TX
Member since May 2005
773 posts

re: Selling BR Pool Construction Company.. where do I start?
What are you selling? Any hard assets? A small backlog? Just the name of the Company? Doesn't seem like much there.


LSUFanHouston
LSU Fan
NOLA
Member since Jul 2009
12096 posts

re: Selling BR Pool Construction Company.. where do I start?
Most general business brokers are awful.

Call your competition. Let them know you have enjoyed the game, but are headed out. They may want to buy you and absorb it into their business.

Advertise in trade journals. I'm sure there is a pool construction magazine/website or something.

Send a letter to your past clients. Thank them again for their patronage of your company, and tell them you are looking to move on, and to contact you if they are interested or know someone who might be.

Are you in any networking groups like BNI? Talk to them.

Tell your CPA. I often have clients who tell me they want to sell, others who tell me they want to buy something. You may also want to get an appraisal done to see what a fair selling price might be.
This post was edited on 12/4 at 4:30 pm


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111
Cdawg
Houston Astros Fan
TigerFred's Living Room
Member since Sep 2003
49824 posts
 Online 

re: Selling BR Pool Construction Company.. where do I start?
That's what I'm wondering. 50k lined up for next year is nothing but one small pool.


tigerpawl
LSU Fan
Can't get there from here.
Member since Dec 2003
12121 posts

re: Selling BR Pool Construction Company.. where do I start?
Is the $150k net before or after you paid yourself? That's an important question. "Net" would imply after.
This post was edited on 12/4 at 5:21 pm


thetigerfan225
Member since Jun 2014
4 posts

re: Selling BR Pool Construction Company.. where do I start?
Hey thanks everyone for the advice, some great ideas in here.

1. Checking out some BNI Chapters
2. Speaking with my CPA on a valuation
3. Reaching out to customers
4. Trade Journals
5. BizBuySell

To answer the few questions.


1) There are no maintenance contracts, I turn them down all the time because IMO they're just not worth the time. Most companies that have a service division use it as a loss leader to drive bigger renovation projects. $150/mo for 2-4 trips a month just doesn't fit my business model, but works great for 1 or 2 man crews.

2) The $50k is correctly for 1 pool in Q1 2018. We have about $150k in other pending contracts, but I'm navigating through it right now, because I will be moving out the country in March and looking for a new owner to take over beforehand.

3) The "soft" assets for sale are Brand & Web Presence (Receive dozens of leads a months), Great Project References (Can't put a price on those when in construction) Relationships with Reliable Subs who will travel to Lafayette, New Orleans, and Northshore (very difficult in this industry), and of course GL/WC Insurance and State Licensing - until the new qualifying party takes over.

4) I'm asking $115k, could easily see new owner hit $450k in 2018. Also one of the bigger guys operation is about to go under, so there will be a vacuum in the market.

Brother in Law has interest, with partial owner financing, but would prefer not to sell to family especially with financing.



This post was edited on 12/4 at 5:29 pm


baldona
Auburn Fan
Florida
Member since Feb 2016
7017 posts

re: Selling BR Pool Construction Company.. where do I start?
If you are truly netting $150k which there's no way on $315k in gross sales unless I'm missing something? But if you are then why not hire someone (your BiL) for $100k and net $50k yourself and help grow the company?

Eta: what I would do is offer a payoff plan to someone using the profits. Say 3-5 years of $30-50k a year. You can easily find someone that will make $100k with possibilities of more that will pay you $30-50k of profits a year. It costs them nothing and you make more money in the long run. Would be a win win.
This post was edited on 12/4 at 6:41 pm


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LSURussian
LSU Fan
Member since Feb 2005
108307 posts

re: Selling BR Pool Construction Company.. where do I start?
Were you previously in the milk business?


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21
Cdawg
Houston Astros Fan
TigerFred's Living Room
Member since Sep 2003
49824 posts
 Online 

re: Selling BR Pool Construction Company.. where do I start?
How long have you been in business?

None of your numbers make a lick of sense.


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40
Tigerpaw123
USA Fan
Louisiana
Member since Mar 2007
12964 posts

re: Selling BR Pool Construction Company.. where do I start?
If you can get anywhere close to 115, take it and run, but plan on being disappointed


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FriscoKid
LSU Fan
Red Stick
Member since Jan 2005
4943 posts

re: Selling BR Pool Construction Company.. where do I start?
How about an email address? I know a few people in the pool business.


thetigerfan225
Member since Jun 2014
4 posts

re: Selling BR Pool Construction Company.. where do I start?
Hey everyone thanks for the advice.

Luckily I did speak to two competitors who were very interested, and now in some VERY early talks..

I’m not sure what the doubts are about the financials, I think people are just uninformed about the industry.

I’ve been very lucky to only approach very high margin jobs, and run a VERY lean operation.

Hey Frisco my email thelawrencebills@gmail.com if you would like to discuss.



baldona
Auburn Fan
Florida
Member since Feb 2016
7017 posts

re: Selling BR Pool Construction Company.. where do I start?
Because why not sell or hire someone like your brother in law then? Maybe you can't trust him?

Again, if you are truly making $150k net as the owner you could very easily find someone that will do a pay off where they pay you 30% of the net income for 3-5 years. It's a safer option for them, and you make more money. Let's say you do 4 years, that's a win win for everyone.

Or you straight hire someone out. With those numbers, I'd hire someone out in a heart beat for $90k and help grow the business.


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