Case 1 of 3
Pool service route, semi-absentee buyer
Difficulty
A residential pool service business outside Phoenix: $780K revenue, $295K SDE, asking $944K (3.2x). Four routes — three W-2 techs costing $60k each fully loaded, plus the owner, who drives the fourth himself and writes every repair quote. the add-backs supporting SDE include $58K of the owner's wages, $9K of personal auto and health insurance, and a one-time $12K compressor replacement. The buyer is a career-changer who plans to run the business and hire a fourth tech rather than drive. The listing calls it semi-absentee.
1. Which addback do you push back on?
2. This buyer isn't going to drive a route. What earnings number should they be pricing the business on, and how does that impact the price?
0 / 2000
3. The seller has offered a four-week handover after closing. State why you would accept, or what you would present in a counter offer.
0 / 2000