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Maximizing Value for a High-End Pool Builder

A high-end residential pool builder turned to KLR Outsourcing to maximize value before a potential sale. Discover how KLR Outsourcing's guidance shaped the company’s financial success and smooth transition.

The Challenge

Preparing for Acquisition

Looking ahead to a possible sale, this company wanted to increase profitability and overall business value. When a private equity-backed firm expanding into the pool industry presented an acquisition opportunity, the company turned to KLR Outsourcing for guidance on navigating the sale while maximizing value.

How KLR Responded

Building a Roadmap for Profitability and Successful Acquisition

KLR Outsourcing worked closely with company leadership to implement a strategic plan that included:

  • Establishing a budgeting and forecasting framework to drive profitability.
  • Shifting focus from expanding new construction to growing its more profitable service-based offerings, including recurring maintenance contracts, post-construction services like repairs and upgrades, and improving efficiency in service operations to maximize margins.
  • Implementing substantial price increases for new projects.
  • Reducing costs by negotiating with vendors and subcontractors.
  • Creating a performance scorecard with measurable goals for key team members, ensuring alignment with the company’s financial objectives.
  • Supporting the company through the due diligence process after receiving an acquisition offer from the PE firm.
Key Outcomes

Driving a High-Value Sale and Lasting Success

Doubled Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) - Increased from approximately $2.5 million to nearly $5 million within a year.

Successful Acquisition - The company was sold for $30 million, at a valuation of six times EBITDA.

Leadership Transition The company was sold for $30 million, at a valuation of six times EBITDA.

Continued Partnership - KLR Outsourcing remains engaged with the pool company, assisting with financial forecasting and transitioning to a unified accounting system under the PE firm.

"We knew we needed to make changes if we wanted to attract the right buyer and get the value we deserved. KLR Outsourcing’s strategic guidance directly contributed to doubling our EBITDA in a year and landing a $30 million sale. We’re still working with them today because they’ve become an essential part of our leadership team"

- Former Owner, High-End Residential Pool Builder

Experience Matters. Let's Connect

Preparing for a sale or in need of financial clarity?

We can help you organize your financial picture. Start a conversation with us today.

Tony Boschetto, Partner, KLR Outsourcing

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