How To Purchase Pool Route Accounts
In the Pool Service Industry, the purchase price of the pool route accounts is based on the monthly service billing amount only. A “multiple” times the monthly service billing amount of the accounts will determine the purchase price. This predetermined industry multiple will vary slightly depending on the area of the pool service accounts in the United States.
Before purchasing a particular pool service route it is important to consider:
- Payment History
- Route Radius
- How well the buyer gets along with the seller (he/she will be the person training you)
A buyer should look at the payment history to see when the accounts were billed and when the customers paid. Nobody wants to buy accounts with customers that don’t pay their bills. The payment history will also show the length of time the account has been on service. If the average age of the accounts being purchased is over a year and they have good payment history, these are considered good accounts.
The radius of the pool service route is also significant. The overall radius of the route shouldn’t concern you as much as the daily route radius. A good daily service route should have a radius of 5 to 6 miles or less. It’s important to try and keep the daily routes tight, because the tighter the route the more accounts you can service in a day and the less gas you use.
The person selling the pool accounts should be a factor when deciding to purchase. Before someone purchases pool service accounts, they will have an opportunity to talk with the seller of the accounts over the phone as well as a face to face meeting. This will give plenty of opportunity for the buyer to ask all the questions that they have and determine if they are a good fit with the seller. Remember that the seller is the person that will be doing the training, so if the buyer is not comfortable with them, they shouldn’t buy those particular accounts.
Once the buyer has identified a specific pool service route in the Pool Route Listings section of the website, they need to contact SpringBoard PRB. We will notify the seller and instruct them to call the potential buyer by phone to discuss the details of the particular route. If both the buyer and seller decide to move forward after the initial contact, a face to face meeting will be arranged for the buyer to review the pool service accounts. The buyer shouldn’t schedule a meeting with the seller unless they are very serious about purchasing the accounts. The seller will provide the buyer with the name, address, payment history and monthly billing amount for each account.
At the close of escrow, 10% of the purchase price will be held back from the seller for the guarantee period to assure that all accounts transfer to the new owner successfully (usually 90 days). If any accounts are lost during this transfer period, the buyer will be reimbursed for the lost accounts (unless the accounts are lost because of the buyer’s negligence). The number of accounts lost during this period should be very minimal.
After the route purchase is completed, the seller will provide four weeks of training to the buyer. The first two weeks will consist of hands-on training in service, repairs and preventative maintenance and the second two weeks the seller will be available for additional questions that the buyer might have. During this training period, the buyer receives ALL the income earned. A notification letter should be sent out to all the customers within thirty days of the transfer date (We provide a sample letter).