Beyond the Splash: How Pool Businesses are Valued in a Post-Boom Market

Indoor pool

The "COVID pool boom" is over for pool business value. Here is what smart buyers are paying for service routes, retail shops, and pool construction firms in 2025.

The Market Has Shifted

If you own a pool business, you likely rode the wave of the 2020–2022 home improvement boom. But in 2025, the market has settled. Buyers are no longer paying premiums just for revenue growth; they are scrutinizing margins, labour efficiency, and recurring income stability when looking at pool business value.

For owners looking to exit, the conversation has moved from "How fast are you growing?" to "How sticky are your customers?"

Whether you run a mobile service route, a retail shopfront, or a construction firm, here is the reality of current market multiples and what is driving them.

1. The Gold Standard: Mobile Service Routes

• Valuation Method: Recurring Revenue / Route Density

• Typical Multiple: 2.0x – 3.0x PEBITDA (Proprietary Earnings Before Interest, Tax, Depreciation, Amortisation)

Service routes remain the most liquid asset in the pool industry. Buyers love them for one reason: predictability. However, not all routes are equal. A "tight" route (50 pools in 3 postcodes) will trade at a significantly higher multiple than a "loose" route (50 pools spread across 40km).

What Buyers Audit:

• The "Splash and Dash" vs. Full Service: Buyers pay less for basic cleaning-only runs because they have lower barriers to entry. Full chemical balancing + equipment maintenance services command higher loyalty and margins.

• Customer Contracts: Do you have written agreements, or is it all handshake? In 2025, handshake agreements are being discounted by 10–15% due to transfer risk.

2. Retail Pool Shops: The "Expertise" Moat

• Valuation Method: PEBITDA + Stock at Valuation (SAV)

• Typical Multiple: 2.5x – 4.0x PEBITDA

Retail owners often worry about competition from big-box retailers (like Bunnings) or franchise giants (like Clark Rubber or Poolwerx). However, independent buyers are still active if you can prove one thing: Technical Expertise.

Buyers aren't buying your ability to sell chlorine (anyone can do that). They are buying your water testing database. If you have 2,000 customers on file with regular water testing history, that data is your most valuable asset.

The Valuation Drag:

• Lease Tenure: If you have less than 3 years left on your lease, your multiple will compress. Buyers need certainty of location.

• Stock Levels: "Dead stock" (spare parts for 10-year-old pumps) is often excluded from the sale price. Expect buyers to fight hard on Stock at Valuation (SAV) counts.

3. Pool Construction & Installation

• Valuation Method: EBITDA (Average of last 3 years)

• Typical Multiple: 2.5x – 3.5x EBITDA

This sector carries the highest risk. Construction is cyclical, and buyers are terrified of "Work In Progress" (WIP) disputes. If you sell midway through 10 builds, who is liable for the warranties? Who covers the cost if concrete prices spike next month?

How to Maximise Value:

• WIP Accounting: You must have clean records showing exactly how much profit is recognized on uncompleted jobs.

• Forward Order Book: A signed pipeline of 6 months' work is the only way to defend your price against the "boom and bust" argument.

4. The Franchise Factor

If you are part of a major franchise network, your sale process is governed by the Franchising Code of Conduct.

• The "Assignment Fee": Be aware that your franchisor likely takes a cut or charges a fee to process the sale.

• Right of Refusal: The franchisor often has the first right to buy your business or vet your buyer. This restricts your pool of potential purchasers, often capping the multiple at the network average.

3 Deal Killers to Watch for pool business value (The "Clean Up" List)

Before listing, address these three issues that commonly kill pool business deals during Due Diligence:

1. Chemical Cost Tracking: Chemical prices have fluctuated wildly. If you haven't raised prices to match supplier hikes, your margins will look artificially thin. Show buyers a history of regular price indexing.

2. The "Ute" Problem: Are your service vehicles part of the business or personal assets? If they are aging (5+ years / 200,000km+), buyers will deduct the cost of immediate fleet replacement from your sale price.

3. Owner Reliance: If you are the only one who knows how to fix a complex heater or diagnose a green pool, you don't have a business; you have a job. You need a 2IC (Second In Charge) who can handle technical calls.

Summary

The "multiple" is just a starting point. A pool business with high route density, up-to-date customer data, and a 2IC will always trade at the top of the range. One with old vans, handshake agreements, and a messy lease will trade at the bottom—or not at all.