This is the kind of deal that passes the math. The real question is whether it’s worth the price.
This business operates in Horry County, South Carolina and has been around since 2010, offering pool and spa installation, maintenance, and repair services. It has built a loyal customer base and strong local reputation over more than a decade.
Operationally, this is a standard service business setup with a team of 8 full-time employees, included equipment, and a leased facility. Nothing here stands out as risky or unusual, which is exactly why deals like this get a lot of attention.
But just because a business is solid does not mean it is priced correctly.
Deal Snapshot
Now let’s run this through a standard SBA financing scenario.
SBA Scenario (10% Down)
After debt service, the buyer keeps about $194K per year. That is solid for this deal size and gives some breathing room.
What Stands Out
- Strong post-debt income: Around $194K annually, which is a healthy return.
- Stable margin profile: About 20%, right in line with industry expectations.
- Established business: Operating since 2010 with a loyal customer base.
- Clean operational setup: Experienced team and systems already in place.
- DSCR buffer: At 1.75, there is meaningful cushion above lender minimums.
Potential Risks
- Premium valuation: At 3.75x cash flow, this is meaningfully above typical industry averages.
- No margin advantage: The business performs in line with peers, but you are paying above-market pricing.
- Limited upside cushion: Higher purchase price reduces flexibility if performance dips.
- Service business risk: Dependent on labor, scheduling, and customer retention.
- Good, not great: The business is solid, but not exceptional enough to clearly justify the premium.
BizHub Verdict
This deal scores a 6.1 / 10. Not because the business is weak, but because you are paying a premium for something that is simply solid.
This is where discipline matters. The numbers work, but the price removes a lot of your margin for error.
Good deals are not just about whether they work. They are about how much room they give you when things don’t go perfectly.
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