This $999k Pool Service Pays $140,416/Year After Debt
The numbers are mixed. Coverage falls short of the 2.0x Bulletproof threshold.
This is a pool service business listed at $999,000, generating $1.1M in annual revenue and $293,000 in seller's discretionary earnings. At a 3.41x cash flow multiple, the asking price is above the 3.00x Bulletproof threshold and above the 2.50x benchmark for pool service businesses. The profit margin is 27%, above the 22% benchmark for pool service businesses, about 1.2x the category figure.
We ran this deal through the DealScore Pro Bulletproof Calculator to see how it holds up across all five scoring criteria. Here is the full breakdown.
Deal Snapshot
The deal snapshot tells a mixed story. Revenue of $1.1M produces a 27% margin, above the 22% benchmark for pool service businesses, about 1.2x the category figure. The 3.41x multiple is above the 3.00x Bulletproof threshold and above the 2.50x benchmark for pool service businesses.
Financing Overview
Using the standard 80/10/10 SBA deal structure (80% SBA 7(a) loan, 10% seller financing, 10% buyer down payment), here is what this acquisition looks like when financed.
Why the Numbers Matter
The headline number most buyers fixate on is the asking price. But the asking price alone tells you almost nothing about whether a deal is worth doing. What matters is what happens after you finance it.
The post-debt cash flow of $140,416 per year is what is left after every loan payment on the figures entered. On a $99,900 cash investment, that is a strong return, and it is well above the $100K minimum threshold that the Bulletproof standard requires. This figure is calculated before any cost of replacing the owner’s own role in the business. Where the seller is also the person producing the revenue, a buyer should subtract what it would cost to hire that role before treating this as take-home pay.
The DSCR of 1.92x means the business generates $1.92 for every $1 of annual debt payment. SBA lenders require a minimum of 1.25x. The Bulletproof standard requires 2.0x. This deal clears the bank minimum but falls short of the Bulletproof target, leaving you with a thinner safety margin.
The stress test is where many deals that look good on paper fall apart. We model a 20% drop in revenue and check whether the business can still cover all debt obligations. This deal passes. Even at $879,680 in revenue (down from $1.1M), the cash flow still services the debt. That is the kind of resilience you want in a financed acquisition.
Industry Context
📈 How This Deal Compares to the Pool Service Industry
Pool Service runs close to the all-industry average on SBA defaults, at 4.8% against 5.1%. The industry itself is neither a tailwind nor a drag here, so the deal gets judged almost entirely on its own numbers.
The deal has some solid fundamentals but the mixed signals mean lenders will scrutinize it more closely.
Strengths and Risks
✓ What Works
- Coverage still holds at 1.54 after a modeled 20% revenue drop.
⚠ Watch Out For
- Coverage of 1.92 is above the bank floor but below where I want it. One slow quarter and the loan payment starts competing with payroll.
- At 3.41x the price is above the 2.88x top of the normal band. That is roughly $155k of extra purchase price financed over ten years, so it costs real money every month, not just at closing.
- Every figure here comes from the listing and none of it is verified. A listing is marketing, and it is written by someone paid on the sale.
Who This Deal Is For
Best fit for:
Experienced operators who can underwrite the specific risk flagged above and who have the capital to absorb a soft year without the loan payment becoming the problem.
This deal is not a fit for a first acquisition at the current asking price.
This one did not clear. Here is what does.
Most listings fail on the same few numbers. Starter members get the deals that pass, every week, with the source listing attached.
Frequently Asked Questions
Is $999,000 a fair price for a pool service business?
At 3.41x seller's discretionary earnings, this asking price is above the 3.00x Bulletproof threshold and above the 2.50x benchmark for pool service businesses. The Bulletproof threshold and the category benchmark are two different yardsticks, and this deal sits outside the stricter of the two.
What is a good profit margin for a pool service business?
The benchmark profit margin for pool service businesses is approximately 22%. This listing operates at a 27% margin, which is above the 22% benchmark for pool service businesses, about 1.2x the category figure. That is a comparison against category medians, not a verdict on this listing.
Can I buy a pool service business with an SBA loan?
Yes. Pool Service businesses are commonly financed through SBA 7(a) loans using an 80/10/10 structure: 80% SBA loan, 10% seller financing, and 10% buyer down payment. For this $999,000 deal the down payment is $99,900, but cash required at closing is $129,870 once closing costs and a working capital reserve of $142,948 are counted. SBA lenders require a minimum DSCR of 1.25x, but conservative buyers target 2.0x or higher. This deal's 1.92x DSCR clears the bank minimum but falls short of the conservative target.
How much do pool service business owners actually make?
Owner earnings vary widely based on revenue, pricing, and operational involvement. This pool service business generates $293,000 in seller's discretionary earnings (SDE) before debt service. After SBA financing under the 80/10/10 structure, the buyer would take home approximately $140,416 per year. That post-debt figure is the number that actually matters for a financed acquisition, because it reflects what ends up in your pocket after every loan payment is made.