Due to the owner’s retirement, a very profitable builder of swimming pools & spas is offered for sale on one of the Hawaiian Islands on a totally turnkey basis including the transfer of all work in progress to the buyer.
The Company builds pools with an average price range of $50,000 to $100,000 per pool. The company has a long tenure and has developed an excellent brand recognition and preference in the market for quality work with both individuals and home builders.
Their financial performance is excellent:
• 2017 revenue of $1.2 million, up 7.7% from 2016 and up 17.5% from 2015
• Owner’s profits in 2017 were $334,714
• Business continues to boom.
o Sales YTD May 2018, up 94% over same period in 2017
o As of August 2018, contracted backlog for 30 jobs in progress, over $2.1 million in revenue with an expected job profit margin of 37%.
o Continued job bidding is robust which should lead to a significant revenue growth in 2018 and a strong 2019.
• Job profit margins are in the range of 35% to 40%; significantly higher than on the US mainland. This is due to limited quality competition.
• To keep the business simple and to maintain a low-cost capital base, they lease all “employees”, use subcontractors and lease most of their equipment.
The market for swimming pools in Hawaii continues to be very hot since pools can be enjoyed 12 months per year, the Hawaii economy is strong and there are excellent growth opportunities in the current island market and to expand to other islands in Hawaii, as well as, by adding complimentary products. The company believes that as of February 2018 they are the busiest pool builder in their market.
For confidentiality reasons, the island location will only be disclosed to those who sign a non-disclosure agreement and have sufficient financial capacity. Hawaii requires a pool contractor’s license, so a prospective buyer must be able to qualify for this. Seller will provide a transitional license for a reasonable period after closing to facilitate buyer’s receipt of a HI contractor’s license.
Leased office and customer showroom
Limited Competition results in very high profit margins