Purchasing Pool Construction company prior to possible recessionary period

by a searcher from Central Michigan University - College of Business Administration

1 year ago

I am curious how people are underwriting deals where income is very project based, but also based greatly on discretionary spending. I have a pool construction company I am looking at that has obviously done very well over the last two years, but am struggling to wrap my head around a fair multiple and potential due diligence items to focus on.

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searcher from University of Virginia

I am currently looking at a deal for a pool construction company where the seller is willing to do 75% seller financing, such that the deal terms would likely be more similar to what you would see in a succession plan or an employee buy-out than a search fund deal. Anyone with some more insight on this industry would be helpful. The company has been around for over 20 years so I am not as worried about the long term prospects as I am the next 2-3 years.

5 months ago | like reply | 0 likes

searcher from Carnegie Mellon University - Tepper School of Business

Backlog and outlook will likely be really important!

5 months ago | like reply | 0 likes

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