Acquisition Strategy for a Regional Pool Maintenance and Repair Business Using SBA 7(a), Recurring Route Billing, and High-Margin Renovation Upsells

Regional Pool Maintenance and Repair Business

July 16, 20255 min read

This acquisition strategy focuses on a regional pool service and maintenance company serving high-income residential clients, homeowner associations (HOAs), and boutique commercial properties such as apartment complexes and country clubs. The business operates in a warm-climate U.S. metro with year-round service demand and minimal seasonality, allowing for predictable monthly recurring revenue (MRR). With a reputation built over 20+ years, the company manages over 1,200 weekly service stops across 18 technician routes and also performs lucrative renovation work, including resurfacing, tile repair, pump upgrades, and automation installs.

The company generates $4.9 million in annual revenue with $1.02 million in adjusted EBITDA. Approximately 72% of revenue is recurring from weekly cleaning and chemical balancing services, while the rest comes from repair and renovation work. Most residential customers are on autopay monthly subscriptions, and all commercial clients are on annual maintenance contracts with fixed monthly billing.

This pool business is a prime candidate for SBA 7(a) acquisition financing due to its MRR model, defensible route density, equipment-backed operation, and strong employee tenure. The business does not require the owner to hold a specialty contractor license, though some renovations are subcontracted. Buyers must be ready to manage scheduling, water chemistry compliance, and renovation scoping—but the operational foundation and market position are already established.


Proposed SBA 7(a) Deal Structure

With the strong recurring base and asset-light admin structure, the transaction can be modeled with leverage and performance alignment:

  • Purchase Price: $3.85 million (3.77x EBITDA)

  • SBA Loan: $2.887 million (75%)

  • Buyer Equity Injection: $385,000 (10%)

  • Seller Financing (Subordinated): $577,500 (15%) amortized over 5 years with 12-month interest-only period

Deal protections:

  1. 25% clawback on seller note if over 15% of route clients cancel in 120 days post-close

  2. Bonus payable to seller if buyer closes $750K+ in renovation work within the first 12 months

  3. Seller to remain available for up to 9 months to assist in vendor management and tech transition


Customer Base and Revenue Composition

Client breakdown:

  • Residential homes (weekly cleaning): 65%

  • Commercial pools (HOAs, apartments, clubs): 20%

  • One-off renovations and resurfacing: 15%

Service types:

  • Weekly cleaning, skimming, brushing, filter checks

  • Chemical balancing and treatment

  • Pump, filter, and heater repair/replacement

  • Pool automation system setup

  • Tile and resurfacing projects (contractor-supervised)

The average residential client pays $165–$215/month depending on pool size and chemical package. Commercial clients pay $700–$2,500/month with more frequent service (2–5x per week) and reporting requirements.

Top 100 customers generate 44% of revenue. No single customer is more than 2.5% of gross sales.


Route Operations and Scheduling

The company operates 18 service routes:

  • Each tech completes 60–80 stops per week

  • All routes are GPS-optimized using Skimmer and QuickBooks integration

  • Each van is stocked with a chemical kit, test strips, vacuums, and route-specific tools

  • Mid-day dispatch support team assists with emergencies or special service calls

Fleet:

  • 18 branded service vans (FMV ~$520K)

  • All owned, fully equipped

  • Replaced every 5–6 years

Buyers should consider upgrading to electric vans over time for reduced fuel spend. Dispatch team monitors tech arrival and departure from each stop, capturing photos and readings on-site.


Staffing Model

Current team:

  • 18 pool technicians (W-2)

  • 2 renovation project managers (bid, scope, manage subs)

  • 3 field supervisors (support, QC, troubleshoot)

  • 2 customer service reps

  • 1 admin/bookkeeper

  • 1 general manager

Pool techs are trained on water chemistry, customer service, and route efficiency. The company runs a technician apprenticeship program (90 days paid training) and offers quarterly bonuses tied to retention and client reviews.

Post-close labor plan:

  1. Provide retention bonuses for all techs staying through Year 1

  2. Develop internal training library for faster onboarding

  3. Introduce tiered pay structure for top-rated techs with 100% route completion

  4. Review routes quarterly for balance and growth potential


Facility and Equipment

  • 5,000 sq ft leased facility with:

    • Supply room

    • Van parking yard

    • Admin offices

    • Renovation materials bay

Lease: $4,950/month NNN, 2 years left with 5-year renewal option.

CapEx forecast:

  • $75K–$100K for new vans over 24 months

  • $15K for CRM expansion and mobile app integration

  • $20K for supply and test kit restocking


Sales and Marketing Infrastructure

Marketing channels:

  • Google Ads + LSA

  • Website with quote request form and autopay enrollment

  • Yelp and Angi leads

  • Realtor and property manager referrals

  • Inbound from truck branding and local signage

$7,500/month average marketing spend\

Post-close opportunities:

  1. Create enhancement menu (LED lighting, automation, safety rails) to upsell to route clients

  2. Launch annual re-sign campaign with discounted rate locks

  3. Develop HOA-targeted proposal templates for 50+ known associations in service area

  4. Add outbound sales rep targeting high-end residential neighborhoods and new construction


Financial Performance Summary

  • Revenue: $4.9M

  • COGS (chemicals, labor, equipment, fuel): $2.57M

  • Gross Profit: $2.33M

  • SG&A: $1.31M

  • Adjusted EBITDA: $1.02M (20.8%)

Monthly revenue is consistent with a 2–3% lift in summer months. Route churn is under 6% annually, with most clients staying 3+ years. Renovation income is spiky but highly profitable.

Cash collections are strong with 92% of clients on ACH or credit card auto-pay. No significant AR or collections concerns.


Legal and Risk

  • Fully insured: $2M GL, $1M auto, $1M umbrella

  • W-2 labor model for techs with signed NDAs and route agreements

  • Licensing: pool techs certified; subs for resurfacing carry appropriate licenses

No open lawsuits or regulatory issues. Buyer should audit all subcontractor agreements and ensure vendor pricing continuity.


Working Capital Requirements

  • Payroll float: $110K–$125K

  • CRM/scheduling upgrade: $12K–$15K

  • Van replacements (can be staggered): $90K

  • Renovation bid tools and equipment: $10K

  • Seller consulting: $30K


Ideal Buyer Profiles

  • Route-based home service operators (pest, lawn, HVAC)

  • Private equity-backed platforms targeting recurring service

  • Franchisors seeking a base for future expansion

  • High-income entrepreneurs seeking semi-passive cash-flowing businesses


Post-Close Execution Plan

  1. Retain top techs and conduct intro visits with all HOA boards and large commercial clients

  2. Launch automation system upsell to all eligible residential clients

  3. Implement route profitability dashboard and review for optimization

  4. Build inbound renovation pipeline with seasonality-based promos

  5. Evaluate expansion into adjacent zip codes with route saturation


Conclusion

This pool maintenance business offers an incredibly stable base of recurring route revenue with strong margins and room for upsell through renovations, automation, and commercial service bundling. With SBA 7(a) financing, a buyer can acquire the business for under $400K out of pocket, cash-flow quickly, and scale through marketing, retention, and geographic expansion. The opportunity is ideal for buyers seeking long-term service contracts, field operations, and proven operational playbooks in a highly defensible, non-discretionary vertical.

Co-Founder and COO of Eagle Dawn Capital

Danny Carlson

Co-Founder and COO of Eagle Dawn Capital

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