Contractors and Builders
Thinking of Selling Your Pool Company? Know Your Worth
Thinking of selling your pool company? It helps to know your worth. Find out what investors are really looking for when buying a company.
Selling a pool business requires more than just crunching numbers and applying a basic formula. A friend and colleague of mine in the pool industry, learned this the hard way. Despite having yearly sales of $2 million and an EBITDA of $200,000, he initially believed his business was worth between $600,000 and $1,000,000. However, a deeper analysis revealed that the true worth was closer to zero. One thing became clear to me, if you’re thinking of selling your pool company, it certainly helps to know your worth.
Figuring Out What Your Pool Company Is Worth
Understanding the key components that determine a pool company’s value is crucial for anyone considering selling their business. The primary drivers are EBITDA (earnings before interest, taxes, depreciation, and amortization) and multiples of EBITDA.

EBITDA: The Foundation of Value
EBITDA serves as a fundamental indicator, representing the operational profitability of a business. Investors often look for businesses with a 20% profit margin, valuing them at three to five times their EBITDA. For example, a pool company generating $1 million annually with an EBITDA of $200,000, the estimated value could range from $600,000 to $1 million.
Some simplify the valuation process by associating the value directly with revenue. For instance, a business with $1 million in revenue might be considered worth $1 million. However, this simplistic approach neglects the nuances that savvy investors scrutinize.
Factors That Decrease Value: Beware of Red Flags
Merely relying on the EBITDA formula is insufficient. Investors consider various factors beyond the numbers. For example, a business owner not paying themselves a salary, might falsely believe their profit is the true measure of success. However, investors aren’t just buying a business; they’re buying a sustainable operation. Industries with low profitability or thin profit margins are sure to deter investors.
Moreover, risks such as high turnover rates, equipment issues, or seasonal businesses with no new customers can decrease confidence, making investors hesitant to pay a premium.

Going Beyond Simple Math To Find Value When Selling a Pool Company
As businesses scale in revenue, the multiples of EBITDA change significantly. Larger companies with steady revenue streams may be valued at five to seven times EBITDA, or even higher if they go public. Patents on proprietary technology can further elevate the valuation.
Consider Instagram, a company with only 13 employees valued at $1 billion when acquired by Facebook. Patented technology can attract major players and launch bidding wars, driving multiples into the stratosphere.

What Are Investors Looking For?
Investors typically look for several key factors that can make buying a pool company more attractive. These factors can contribute to the overall value and potential return on investment. Here are some important considerations when selling your pool company:
Stable Revenue and Profit Margins:
Consistent and growing revenue streams are attractive to investors. A pool company with a stable customer base and recurring revenue from services such as maintenance contracts can be more appealing.
Healthy profit margins demonstrate the company’s ability to manage costs effectively.
Customer Base and Contracts:
A large and diverse customer base with long-term contracts can provide a predictable income stream and reduce the risk of revenue fluctuations.
Contracts for pool construction, maintenance, and repair services can enhance the company’s value by ensuring ongoing business.
Reputation and Brand Recognition:
A strong reputation for quality service, customer satisfaction, and reliability can significantly enhance the company’s value. Positive customer reviews and testimonials contribute to brand recognition.
Established brand equity can be a competitive advantage and attract new customers.
Geographic Reach:
A pool company that serves a broad geographic area or has the potential for expansion into new markets may be more appealing to investors looking for growth opportunities.
A diverse customer base across different regions can help mitigate risks associated with local economic downturns.
Technological Integration:
Companies that leverage technology for efficient operations, customer management, and data analysis are often more attractive to investors.
Integration of smart pool technologies and other innovations can position the company as forward-thinking and responsive to market trends.
Experienced Management Team:
A skilled and experienced management team is crucial. Investors often look for a team with a proven track record in the pool industry, as well as a history of successful business management.
The presence of knowledgeable and capable leaders can instill confidence in investors.
Compliance and Regulatory Considerations:
Adherence to industry regulations and compliance with safety standards is essential. Companies with a strong commitment to legal and regulatory compliance are generally viewed more favorably by investors.
Financial Health and Growth Potential:
A strong balance sheet, positive cash flow, and manageable debt levels are indicators of financial health.
Clear growth potential, whether through expansion, diversification, or innovation, is attractive to investors seeking a return on their investment.
Environmental and Sustainability Practices:
Increasingly, investors are interested in companies that prioritize environmental sustainability. This may include energy-efficient pool systems, responsible water management, and eco-friendly pool chemicals.
Market Trends and Industry Outlook:
Awareness of and adaptation to current market trends, such as the increasing demand for home improvement services, sustainable practices, and smart home technologies, can enhance a pool company’s attractiveness to investors.
Becoming More Attractive To Investors
For pool companies looking to sell, the time to enhance value is now. Going the extra mile by pushing sales, increasing social media presence, and staying relevant can significantly impact the company’s perceived worth. Introducing innovative products can lead to substantial increases in EBITDA and future sale value.
Even small improvements, such as a 1% or 2% increase, can translate into millions of dollars. Building confidence in your company not only attracts investors but also maximizes the return on investment when it comes time to sell. In the dynamic pool industry, strategic efforts to bolster value will undoubtedly pay off in the long run.

Determining The True Value of a Pool Company
Valuing a pool company requires a multifaceted assessment that encompasses financial metrics, industry dynamics, and qualitative factors. Investors seeking to determine the company’s worth typically delve into the financial health, examining revenue sources, profit margins, and Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA).
Additionally, the composition and stability of the customer base, existing contracts, and backlog of projects are crucial indicators of future revenue and growth potential. Tangible assets, liabilities, and cash flow analysis provide insights into the company’s financial structure, while an evaluation of the management team’s experience, brand reputation, and compliance with industry regulations contributes to the overall assessment.
Beyond financial considerations, investors scrutinize the company’s position in the market, competitive landscape, and its alignment with industry trends. The geographic reach, technological integration, and commitment to innovation are also pivotal factors. Evaluating risk factors, including customer concentration and potential challenges in the regulatory environment, is essential. The investor’s exit strategy and the company’s future growth prospects, whether through market expansion or service diversification, add further dimensions to the comprehensive valuation process.
One thing is certainly for sure, selling your pool company these days isn’t always so cut and dry. Ultimately, the valuation of a pool company is a nuanced undertaking that requires a combination of financial expertise, industry knowledge, and a thorough understanding of qualitative factors to arrive at a well-rounded assessment of the company’s value. Finding the right buyer who truly understands what your company is worth is the key to getting the right price.
Contractors and Builders
“But It Passed Inspection”: Why That’s No Defense for Code Non-Compliance
Every pool builder or contractor has heard it—or said it—at some point:
“But it passed inspection.”
Those words often come up in courtrooms, after a project has gone sideways and litigation is underway. It’s a phrase meant to shift blame, to suggest that because an inspector signed off, everything must have been done correctly. Unfortunately, that’s not how the law works.
Passing inspection does not equal being code-compliant. And when problems arise, it’s the builder or designer, not the inspector, who carries the legal and financial responsibility for non-compliance. Understanding how building standards are adopted, enforced, and referenced is critical for every professional in the pool and spa industry.
Understanding How Standards Become Law
Most contractors know that building codes exist, but fewer understand how those codes are structured. Many of the technical details that govern your work are not printed in the state building code itself. Instead, they’re part of what’s known as “adopted by reference”—external standards that are legally binding even though they aren’t printed word for word in the codebook.
For example, the International Code Council’s International Swimming Pool and Spa Code (ICC-ISPSC) is one of the most widely adopted pool construction standards in the country. Many states have formally adopted the ISPSC by reference through their residential or building code appendices. That means that even though you won’t find every detail of the ISPSC spelled out in the printed state code, it carries the full weight of law.
How “Adopted by Reference” Works
When you look at your state’s residential building code, you’ll often find an appendix titled “Referenced Standards.” This section lists all of the national and international standards the state has chosen to adopt for that code cycle.
Most of the larger, more populous states are on a three-year code revision cycle, staying current with the ICC and IAPMO (International Association of Plumbing and Mechanical Officials) updates. Smaller states tend to move on longer cycles, sometimes adopting every six or nine years.
Instead of reprinting the full ISPSC document, the state code typically includes a short statement that ties the local law directly to that standard.
For example:
•. In the 2015 Texas Residential Code, section 326.1 states: “The design and construction of pools and spas shall comply with the International Swimming Pool and Spa Code.”
•. The 2018 Tennessee Residential Building Code uses nearly identical language in its own section 326.1.
This simple line means that the entire ISPSC—every clause, every diagram, every standard—becomes part of that state’s enforceable building law.

What’s Inside the ISPSC?
When a standard is adopted by reference, you’re bound to comply with all of it. That includes requirements for:
•. Water circulation rates and line velocities
•. Floor contours, slope transitions, and steps
•. Handholds and ladder spacing
•. Anti-entrapment and anti-drowning features
•. Safety barriers, fencing, and alarms
•. Structural load and shell integrity
•. Equipment placement, bonding, and electrical standards
In short, “adopted by reference” brings the entire ISPSC—and all of its subsections—into play for every new pool or spa construction project in that jurisdiction.
When Local Jurisdictions Modify the Code
Local municipalities do have some authority to modify state codes, but they can’t do it informally. To avoid enforcing specific portions of the state building code, a local government must pass a formal resolution listing every section of the state code that they are choosing not to adopt.
This is rare, but it happens. For example, California and Florida both have their own pool-specific codes that go beyond the ISPSC. These state-level codes are considered more stringent than the ICC’s model code, so they don’t need to reference it directly.
However, for the vast majority of states, the ISPSC—or another comparable standard—is part of the law by reference.
Inspectors Are Not the Final Authority
Here’s where many builders get tripped up: local inspectors do not routinely read or study the building codes in full detail.
Most inspectors rely on experience and precedent. It’s not until they review a set of plans that cites a specific code section or standard that they realize a particular provision applies. That’s why a project can “pass inspection” even though it’s not fully compliant with the adopted standards.
In these situations, ignorance of the code is not a defense—for the inspector or the builder. But while inspectors are largely protected by sovereign immunity, meaning they can’t be sued for missing violations, builders and designers are not.
If a defect later leads to injury or property damage, the responsibility lands squarely on the contractor or design professional. Courts have consistently ruled that “passing inspection” does not exempt a builder from liability if the work fails to meet applicable codes and standards.

The Legal and Financial Reality
In personal injury or construction defect litigation, one of the first questions attorneys ask is: “Was the work code-compliant?”
If the answer is no, it doesn’t matter that the project was approved by a local inspector. The standard of care in these cases is what the law requires, not what the inspector accepted.
Builders and designers are legally responsible for:
•. Knowing which codes apply in their jurisdiction
•. Keeping current with code updates and revisions
•. Ensuring that all referenced standards are followed
•. Documenting compliance throughout the project
Failing to do so can expose contractors to claims of negligence, breach of contract, or professional misconduct, even years after the project is complete.
“It Passed Inspection” Is Not a Defense
The concept of sovereign immunity exists to protect public officials, including building inspectors, from lawsuits when they make honest mistakes. That protection does not extend to private builders.
In the eyes of the law, you’re the expert. You’re expected to know the applicable codes and standards. When a violation exists, you can’t rely on an inspector’s oversight as a shield.
Saying, “But it passed inspection,” is equivalent to admitting you didn’t understand your own obligations under the law.
Staying Ahead of the Curve
So, where should builders go to stay informed? The most accessible resource is UpCodes, an online library that provides searchable access to state-specific building codes and referenced standards.
UpCodes makes it easy to:
•. Search your state’s adopted code cycles
•. Review appendices for referenced standards
•. Track amendments or local modifications
•. Stay up to date on pending revisions
It’s also a good practice to maintain a copy of the current ICC-ISPSC or your state’s equivalent pool code in your office or jobsite trailer. Regularly reviewing it with your design and field teams helps prevent costly oversights.
A Builder’s Responsibility
Complying with building codes and referenced standards isn’t about passing inspections—it’s about protecting lives, property, and your professional reputation.
Builders who study their codes, document compliance, and communicate clearly with inspectors and clients show the kind of professionalism that defines true craftsmanship.
Codes aren’t arbitrary red tape; they’re the accumulation of decades of engineering, safety research, and field experience. When you follow them—not just the parts you know, but the full scope of what’s adopted by reference—you’re doing more than meeting legal requirements. You’re building with integrity.
Final Thoughts on the Subject
The next time you hear someone say, “But it passed inspection,” remember this: inspections are a checkpoint, not a certification of compliance. The responsibility—and the liability—always comes back to the builder.
Do your homework, know your state’s adopted standards, and make compliance a cornerstone of every project. It’s not just good business—it’s the law.
Contractors and Builders
LATICRETE Expands HYDRO BAN® System to Speed Up Shower Installation
New Peel & Stick Sheet Membrane Accessories and Modular Shower Pans Deliver Economical Options for Installation Flexibility
Bethany, CT – LATICRETE, a manufacturer of globally proven construction solutions for the building industry, announces expansions to its HYDRO BAN® Shower System. New peel-and-stick sheet membrane accessories, modular shower pans, and preformed curbs make their debut. The new products are specifically designed to deliver streamlined waterproofing installation options for tile professionals and contractors.
Professional-Grade Peel & Stick Waterproofing Accessories
Seven new HYDRO BAN Peel & Stick Sheet Membrane Accessories are now available, delivering industry-first innovation for mess-free wet area installations. Each features a non-organic adhesive to circumvent the mold and mildew concerns that can arise with organic chemistries in wet areas. The expansion includes sealing tape in three sizes, preformed inside and outside corners, a pipe collar, and nail circle patches. Whether sealing around pipes, corners, or wall seams, the new accessories eliminate the need for additional adhesives or mortars for membrane installation.
“These accessories are designed to make waterproofing as intuitive as possible,” said Dustin Prevete, senior group product manager at LATICRETE. “Both experienced tile setters and those new to waterproofing will find a fast and reliable application delivered through a simple installation method: just peel, stick, and seal.”
The peel-and-stick format ensures consistent adhesion and flexibility that minimizes user error. When used in conjunction with other vapor resistant waterproofing solutions, they are an ideal choice for steam rooms, steam showers, bathrooms, and other high-humidity environments.
Modular, Pre-Waterproofed Pans for Efficient Shower Installations
The new HYDRO BAN Modular Pre-Sloped Shower Pan and HYDRO BAN Preformed Curbare compatible products engineered to significantly reduce shower installation time and complexity. The pans, available in seven common sizes with both center and off-center train options, feature a pre-applied waterproof coating and ship in a flat-packed, multi-piece format for flexible jobsite handling and field customization. They offer a more economical solution than the one-piece pan, allowing for additional design possibilities and less shipping and storage hassle. The new flat-edge curb is available in 24″, 48″, and 72″ lengths for enhanced compatibility and installation versatility.
“These are the only pre-waterproofed, modular, multi-piece shower pans available on the market today,” added Prevete. “They meet the growing demand for prefabricated shower pans that are easier to install, store, and ship, all while providing compatibility and warranty.”
The new modular pans and compatible flat-edge curbs offer a simplified alternative to custom pre-sloped units, offering an easier dry fit, and allowing contractors to adjust sizing on-site using built-in grid lines. These new products are fully compatible with the HYDRO BAN Shower System, allowing for cohesive, code-compliant installations.
System-Driven Simplicity, Proven Performance
The launch of both products represents the latest innovations from LATICRETE, the most trusted name in the industry. They echo the brand’s ongoing commitment to purpose-driven innovation, offering trusted waterproofing solutions that adapt to the needs of today’s jobsite. The HYDRO BAN line expansion in particular lets users select the premier solutions for a complete shower installation that align with their specific installation preferences.
All components comply with ANSI A118.10 standards and are fully compatible with the HYDRO BAN Shower System. When used together, these high-performance products also maintain the industry-leading LATICRETE system warranty, all while saving time and reducing labor.
For more information on the HYDRO BAN Shower System and its latest additions, visit www.laticrete.com/newproducts.
Contractors and Builders
Marcus Sheridan: The Pool Marketing Playbook That Changed Everything
When the financial crisis of 2008 threatened to strain River Pools, Marcus Sheridan made a decision that not only saved his business but also reshaped how an entire industry thinks about marketing. Today, Sheridan is recognized as one of the foremost voices in digital sales and marketing strategy, a sought-after keynote speaker, and the author of They Ask, You Answer—a book that has become required reading for business owners looking to thrive in the digital age.
Sheridan co-founded River Pools in 2001 with two partners, starting with modest ambitions and a broad focus that included above-ground pools, hot tubs, and a retail store. Things were steady, but when the recession hit, the future of the company looked bleak.
“It looked like we needed to file bankruptcy,” he recalled. “It was during this time though, that I really started to just learn more about the way the digital buyer was evolving.”
The Strategy That Changed Everything
Instead of retreating, Sheridan dove into inbound marketing, drawing from resources like HubSpot, and quickly realized the path forward was through answering every single question potential buyers had ever asked.
“We said, ‘We’re gonna become like the Wikipedia of fiberglass pools. If anybody has a question, good, bad, or ugly, we’re gonna address it. We’re gonna own it with text and with video. We’re just gonna go full send on this.’”
That approach transformed River Pools into the most visited swimming pool website in the world. One of the most impactful moments came when he addressed the question most pool companies avoided: pricing.
“This is literally the first question everybody wants to know,” he said. “We were the first pool company in the world to address how much an in-ground pool costs on our website.”
That one article, written in 45 minutes at his kitchen table, has generated over $35 million in revenue.
Why the Industry Still Resists
Even with proof in hand, many contractors still avoid talking about pricing. Sheridan says it comes down to three myths: every job is different, competitors will use it against them, and customers will be scared off by the cost.
“Just doing that [explaining cost variables] induces a ton of trust,” he said. “And if your competitors don’t already know your pricing, they’re asleep at the wheel.” But perhaps the most critical insight is this: “What we know scares people away is when they can’t find any information on pricing.”
Creating Tools for the Modern Buyer
Today’s buyer doesn’t want to speak to a salesperson until they’re ready. Sheridan calls them the “self-service buyer,” and he built PriceGuide.ai to address their expectations.
He shared a case study from AE Pools & Landscape, which added a pricing estimator to its website in early 2024. “Last year they got 400 leads for the entire year. This year, they’ve gotten 1,200 leads so far. They closed 300 sales and have $5 million in the pipeline.”
That $200 tool, he said, took the company from $3 million to a projected $10 million in one year.

Where AI Is Taking Us Next
Sheridan believes AI will soon be a standard part of how consumers shop for contractors. “Homeowners are going to tell their AI assistant, ‘We want a swimming pool. Research the local companies, give us estimates, and tell us who you’d choose and why.’”
And the contractors who don’t have price estimators? “You don’t get the recommendation.”
He’s confident in his prediction: “Within five years, 90% of all swimming pool companies will have a pricing estimator on their website. Mark my words.”
Missed Opportunities in Video
Asked about the most common marketing mistake contractors make, Sheridan didn’t hesitate: “Video, lack of. It’s not close.”
He believes YouTube may soon be more important than a company website. One-to-one video, project documentation, and consistent short-form content all help create trust.
“The first time the homeowner sees the salesperson’s face shouldn’t be when they walk up the driveway. Shame on you if that’s the case.”
He emphasized the need to document every job. “We’re one of the most visual products in the world. If you’re not taking video of every job—before and afters, showing the process—you’re missing the boat.”
Why You Should Talk About the Competition
Sheridan doesn’t shy away from comparison content, even if it means steering a prospect toward a different product or competitor.
“If somebody asks, ‘Are there other pool builders you’d recommend?’—am I gonna ignore it? No, because they’re not ignoring it.”
River Pools even built a quiz tool that sometimes recommends vinyl or concrete—though they only sell fiberglass. “Why would we do that? Because that’s what buyers want. And I generate way more leads because of it.”
Becoming a Trusted Brand
In Sheridan’s view, being known and trusted isn’t optional—it’s survival. “The most important thing you can do for long-term success is build a known and trusted brand in your market. If you’re not known, and if you’re not trusted, you will fail.”
He urges contractors to stop outsourcing everything and start participating directly in brand-building.
“Stop waiting for somebody else to build your brand. You gotta have a dog in the fight. You gotta be the one to hit record often.”
Looking back, Sheridan says the tactics he used in 2009 wouldn’t be enough today. Text-based blog posts and a few YouTube videos were groundbreaking then, but social media, short-form video, and AI tools are now essential.
“You can’t just answer your customer questions on your website and think that will be enough. It’s not. You’re gonna have to do more than that. If you wanna scale to big numbers, you’ve gotta think more like a media company.”
But even as the tools evolve, the philosophy stays the same: meet buyers where they are.
“Everything your buyer wants—those are the same things you want. You wanna watch video when you’re researching? Meet the consumer where they are. It doesn’t matter if you think you have a face for video or not. You’re still gonna ask them for money, so you better hope they trust you.”
For Sheridan, the future belongs to pool companies that embrace that mindset. “You’re not just a construction company. You’re a sales and marketing company. If you’re not known and trusted, you won’t last. But if you lean into what your buyers really want, you’ll be amazed at how much your business can grow.”
Ready to take a deeper dive?
Listen to our entire conversation with Marcus Sheridan on the Pool Magazine Podcast.
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