pool_chemicals croppedOperating more than 20 retail locations in Texas, our client was approached by the world’s largest pool and spa supply retailer, who was anxious to enter the Texas market. The client was motivated to close by year-end to minimize tax implications, and the buyer was focused on completing the acquisition and integration prior to start of spring pool season in Texas.

Challenges

  • Expedited timeframe to meet buyer and seller needs
  • Selling second-generation family business with multiple shareholders
  • Extensive due diligence surrounding inventory at 20 locations
  • Lease agreements with multiple lessors and varying renewal dates
  • Dec. 31 close required key transaction activity during the holiday travel season

Value Drivers

  • #1 pool supply retailer in Texas
  • Strong middle management
  • Proprietary pool chemicals
  • Effective systems managing multiple locations
  • Reputation for quality

Our Approach

  • Analyzed national landscape to determine audience of target buyers
  • Negotiated exclusively with strategic buyer who would derive the most value from the business combination
  • Locked up key managers to facilitate transaction and protect valuation

Results

  • With the store makeover commencing Jan. 2, by end of February, the buyer was ready for spring pool season and poised for future growth
  • Went from offer to close in 45 days, meeting buyer and seller needs
  • Found great home for second-generation family business, which is now poised for future growth
  • Monetized two generations of family wealth and achieved estate planning for both generations
Securities offered through DCF, LLC. Member FINRA/SIPC. Doeren Mayhew is an independent firm affiliated with Moore Stephens International Limited.