Experience rolling up companies which require a contracting license?

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April 02, 2024

by a searcher from University of Colorado at Boulder in Los Angeles, CA, USA

More specifically, the pool service market in California. Any company offering pool maintenance services in excess of $500 require a C-31 D35 contracting license to be held which requires 4 years "journeyman" experience in the industry. My background is M&A, not pool service.

Almost every company (worth buying) does repairs over this threshold and are often contracted out to 1099s who specialize in repairs if there isn't a repair tech on payroll. This is generally pretty simple stuff - replacing pool pumps, cleaning filters, replacing pool light bulbs, etc. Not looking to build and install pools here.

Curious to know if anyone else has experienced this hurdle in acquiring service based/manual labor businesses in CA.

Any input is always appreciated!

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Reply by a professional
from University of Notre Dame in New York, NY, USA
^redacted‌ I'm doing a pool deal requiring a C53 license in CA right now, which are not transferrable under CA law. We put a very creative structure together where the seller is able to stay on and "qualify" the new business license post-closing. Happy to chat about it - shoot me an email at redacted or DM me.
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Reply by a searcher
from University of Georgia in Atlanta, GA, USA
I don't have experience in California, but I've always seen people do what Joseph Spina described above when it comes to finding a qualifier (license holder). One suggestion: work on finding another person who can be a backup if the relationship breaks down with the seller. You don't want the seller holding you hostage.
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