By Jim Haidet, Pool Business Brokers
Let’s consider two pool service companies with the same revenue that will have very different outcomes when they try to sell. One goes to market and attracts multiple buyers, strong offers and favorable terms. The other struggles to generate interest or sells at a discount. On paper, they look similar. In reality, they’re very different businesses.
If you read the April issue of Florida Pool ProSM magazine, you know there’s a lot of buyer interest in this industry right now. The demand is real. But what many owners don’t realize is that demand doesn’t apply equally to every business.
You can easily avoid being the one asking yourself “why did my friend’s business sell quickly, and nobody is interested in mine?”So what separates one company from another? The biggest misconception is that revenue determines value. But, simply put, it doesn’t.
Buyers are far more focused on how that revenue is generated, how predictable it is, and how easily the business can operate without the owner. Let’s take a closer look.
Company A
Company A generates about $1 million in annual revenue. The owner is heavily involved, handling customer relationships, managing routes and making most day-to-day decisions. The routes are somewhat spread out, and pricing hasn’t been adjusted in a few years, so it’s below current market rates. The business is busy. The owner works hard. But the financials require explanation, and much of the value is tied directly to the owner’s involvement. From a buyer’s perspective, there’s opportunity, but also risk.
Company B
Company B also generates about $1 million in revenue, but it operates differently. Routes are tight and efficient. Technicians handle the day-to-day service. Pricing is at or slightly above market rates, and customers have accepted it. The business uses systems for billing, routing, communication, and the financials are clean and easy to understand. The owner is still involved, but the business doesn’t depend on them to function. From a buyer’s perspective, this is a much easier business to step into and grow.
Why the Difference Matters
Buyers aren’t just buying a list of pools, they’re buying income they can count on without a lot of surprises.
Company A may generate the same revenue, but it often comes with more uncertainty: Will customers accept price increases? What happens when the owner steps back? How much work is required to improve operations?
Company B answers those questions before the buyer even asks them. That reduces risk, and when risk goes down, value goes up.
What Buyers Actually Look For
Across the board, the businesses that attract the most interest and the strongest offers tend to share a few key characteristics:
- Owner Independence: The less the business relies on the owner, the more transferable it is
- Route Density: Tight routes improve efficiency and margins
- Market-Based Pricing: Proper pricing increases profitability and reduces future uncertainty
- Customer Stability: Low churn and consistent service history matter more than volume
- Clean Financials: Buyers want numbers they can trust and understand
- Systems and Team: Organized operations and reliable technicians make transitions smoother
These are the factors that separate a “good business” from a “high-value business.”
One of the Most Overlooked Value Drivers
Pricing is one of the simplest and most overlooked ways to increase value.
If your rates are below market, it may seem like you’re staying competitive. But from a buyer’s perspective, underpriced routes create questions: How much can pricing be increased? Will customers stay? How long will it take to get margins where they should be? Those unknowns often translate into lower offers.
Owners who address pricing before going to market, while they still control the customer relationships, are typically in a much stronger position.
The Takeaway
If there’s one thing to understand, it’s this: not all pool service companies are created equal in the eyes of a buyer.
Two businesses can generate the same revenue and have very different outcomes when it comes time to sell. The difference usually comes down to structure, efficiency and preparation, not size.
Even if you’re not planning to sell anytime soon, it’s worth stepping back and looking at your business through a buyer’s lens. Could someone step in and run it without you? Are your routes efficient? Are your prices where they should be?
Because in today’s market, buyers are paying attention and the businesses that are built the right way are the ones that stand out.
