Established Pool Service, Repair & Renovation, 25-Year Central Florida Company

$3.2M

Revenue

$2.9M

SDE

1.1x

Multiple

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Full Editorial Writeup

This is a 25+ year-old, two-division pool services company operating in one of Central Florida's high-growth residential markets. The business spans recurring pool maintenance and cleaning routes on one side, and higher-ticket repair and renovation work on the other, giving it both a stable revenue base and project-driven upside. With roughly $2.94M in annual revenue and $500K in owner cash flow, it converts about 17% of top line to earnings, which is solid for a services operation carrying a route book plus a project division.

The two-division structure is the core of the story. Recurring maintenance contracts produce predictable monthly cash flow and act as a lead-generation engine for the repair and renovation side, where margins on equipment swaps, resurfacing, and remodels are typically richer. In a market like Central Florida, where pool density is high and the climate demands year-round service, that maintenance base is close to a subscription in practice.

The asking price of $3.2M includes real estate, which meaningfully changes how you underwrite the multiple. On operations alone, $500K of cash flow against a purchase price that carries a building means the implied operating multiple is lower than the headline 6.39x once you carve out the property value. A buyer needs to separate the real estate value from the going-concern value to understand what they are actually paying for the business itself.

Why we like it

Earnings quality is anchored by a recurring maintenance route book that bills monthly and does not need to be re-won each cycle. On $2.94M revenue the business throws off $500K in cash flow, a clean roughly 17% margin that reflects a real services operation rather than a one-man shop dressed up as a company.
Pool service is genuinely recession-resistant in Florida, because a filled pool has to be maintained regardless of the economy or it turns into a health hazard and a code problem. Homeowners defer discretionary spend before they let a $50k asset in the backyard go green, which protects the maintenance base even in a downturn.
Central Florida is one of the fastest-growing residential markets in the country, with continuous new-home construction and pool installs feeding the addressable base. That tailwind means both the maintenance route and the higher-margin repair and renovation division have a growing pipeline without heroic sales effort.
The two-division structure creates a natural cross-sell flywheel, where the maintenance techs are on-site weekly and become the eyes that surface repair, equipment-swap, and resurfacing work. That captive lead source lowers customer acquisition cost on the high-ticket renovation side versus a standalone remodeler bidding cold.
Real estate is included in the $3.2M price, so a buyer controls the facility and removes landlord and relocation risk while building equity in a hard asset. Backing the property value out of the purchase price should reveal an operating multiple well below the headline 6.39x.

How to improve it

Split the P&L cleanly between the maintenance division and the repair/renovation division within the first 90 days so you know exactly which line earns the margin. Most pool companies underprice recurring service and give away diagnostic labor, and you cannot fix pricing you cannot see by division.
Push a systematic annual price increase on the maintenance book, since routes are notoriously sticky and customers rarely churn over a modest monthly bump. Even a 5 to 8% increase across the base drops almost entirely to cash flow given the routes are already staffed and routed.
Build a structured referral and inspection-to-quote process so every weekly maintenance visit generates documented repair recommendations. Formalizing the handoff from tech to sales converts the captive route into a predictable renovation pipeline instead of relying on ad hoc upsells.
Tighten route density and scheduling with proper routing software to cut windshield time and fuel per stop. Denser routes let the same tech headcount service more pools, directly expanding maintenance margin without adding trucks.
Add or expand recurring equipment and chemical supply subscriptions, plus filter and pump warranty plans, to deepen wallet share on existing accounts. These attach naturally to the route and compound the recurring revenue base that underwrites the valuation.
Invest in a modern booking, CRM, and review-generation system to capture the Central Florida new-build wave. Ranking well locally and responding fast to new-homeowner inquiries is the cheapest way to grow both divisions in a market that is already expanding.
Document standard operating procedures and cross-train a second-in-command so the business is not dependent on the departing owner. This protects the transition and materially raises the resale multiple when you eventually exit.

Diligence notes

Break revenue and cash flow into recurring maintenance versus project-based repair/renovation, and quantify what share of the $2.94M is contractual versus one-time. The durability of the valuation rests on the size and retention of the route book, so pull account counts, monthly recurring revenue, and churn history.
Isolate the real estate value from the going-concern value in the $3.2M price and get an independent appraisal. Underwriting the business at 6.39x is misleading if a large chunk of the price is the building, so confirm the true operating multiple and whether the property cash-flows a mortgage at market rent.
Examine owner dependence and the depth of the team, including whether the seller personally holds key customer relationships or manages the renovation bids. A $500K cash flow that runs through the owner's hands is a different asset than one supported by managers and documented routes.
Verify licensing, permitting, and insurance for both the service and construction/renovation divisions, since Florida contracting work carries specific licensing requirements. Confirm the licenses transfer or that a qualified manager stays on, because a lapse here can freeze the higher-margin renovation revenue.
Review labor availability, technician pay, and turnover, as route-based services live or die on staffing in a tight Florida labor market. Confirm the crews are stable, properly classified as employees, and not relying on the owner filling in on routes.

Source

Originally listed on Sunbelt Business Brokers. View original listing →