Sky Blue Pools

Location: Diamond Bar, CA

Description:

Attached is a forecast for Sky Blue Pools for the next ten years.  Sky Blue Pools is a company that focuses on pool repair and selling parts.  Sky Blue Pools is located in Diamond Bar, California and is currently priced at $319,000.  The forecast is based on estimates of similar situations that we researched on the internet.  We included an income statement and a balance sheet. The user of this statement can easily change numbers to fit the spreadsheet to their needs.  

Sky Blue Pools’ service depends heavily on the amount of work for the different types of repairs.  The estimates of land, building, repair costs, and pool parts costs are based on other pool stores in Los Angeles County.  We feel like taking averages of similar companies in the same area give us a fairly accurate view on Sky Blue Pools.

In this spreadsheet with our chosen numbers, Sky Blue Pool’s weighted average cost of capital is 11% and the internal rate of return is 28%.  Our debt percentage comes out to about 48% and equity is 52%.  

After looking at the data from the spreadsheet, we feel that buying this company would be a good investment.  There would be the potential to grow as a company and reach out to more new customers. It is already established, which will make it easier for an investor wanting to enter that market.

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