Overview

This is a turnkey Canadian e-commerce + service business selling water and air filtration systems (home kitchen, whole-home, well water, restaurant/café solutions) alongside installation and aftercare services. The site promotes financing partners (RBC, FinanceIt) and emphasizes installation delivered via a 3PL/installation network position and value prop are service + high-margin hardware with recurring filter sales / installation up-sells. Public site, contact details and financing partners are visible on the company site.

Key Insights

• Very strong margins: Seller figures show a 56% net margin  exceptional for an e-commerce + services model and consistent with a high-margin hardware + paid installation model (high gross on product + high margin on service).

• Turnkey operations & partners: Seller claims supplier exclusivity, financing partnerships and an installation/3PL network. The site lists FinanceIt and RBC finance partners (important for conversion / financing AOV).

• Attractive payback: At the stated profit (CAD $65,454) and asking price CAD $138,559, the payback is 2.1 years (asking price ÷ annual profit) very quick if earnings are reliable. (Calculated: 138,559 / 65,454 ≈ 2.12 years; implied annual unlevered ROI  47%.)

• Clear product-market fit & recurring revenue levers: Installation + annual filter replacement creates repeat revenue and upsell paths (seller claims 90% choose installation). If true, this materially increases LTV vs pure hardware sales.

• Established web presence and local footprint: The site is content rich (FAQ, blog posts) and lists multiple GTA addresses and a phone contact  helpful for credibility.

Website/Product/Marketing Snapshot

• Product categories observed: Home Kitchen Water Systems, Whole Home Systems, Well Water Systems, Accessories  good category breadth for cross-sell.

• Site UX & messaging: Clear service centric messaging (consultation → installation → maintenance). FAQ and blog signal content marketing activity (blogs dated into 2025).

• Social / review footprint: The brand has social profiles (Instagram / Facebook) with some engagement; independent review pages (Yelp / local directories) show mixed content. I did not locate an active Trustpilot profile tied directly to the brand (seller-stated “Trustpilot: 0” aligns with weak presence on large review platforms). Low third-party social proof is a gap to be fixed.

• Site speed / analytics: Not possible to verify deeper metrics (page speed, GA, Shopify conversion) from public browse request access to GA, merchant dashboard and Shopify/WooCommerce store analytics.

Bottom line: public site is credible and service-first. Key performance metrics (traffic, conversion, AOV, SKU count, checkout conversion funnels) are not public, you must get platform access.

Financials

Trend notes (from the table):

• Average monthly revenue CAD 9,654; average monthly profit  5,454.

• Large month-to-month volatility: standard deviation is high (revenue SD 6,190 CAD; profit SD 4,468 CAD). This produces a coefficient of variation > 0.6 — notable variability and seasonality.

• Several outliers: Oct 2024 (very low) and Jan 2025 (near zero revenue, negative profit) need explanation (refunds? supply failure? banking/processing issues?). Conversely Apr/Aug show strong spikes, likely seasonal demand windows.

Valuation check (asking price vs reported metrics):

• Asking price / annual profit = 2.12x (138,559 / 65,454) matches seller-stated profit multiple ~2.1x.

• Asking price / annual revenue = 1.20x matches seller-stated revenue multiple ~1.2x.

• Payback period: ~2.1 years (reasonable / attractive if margins hold).

• Immediate buyer caveat: If profits are concentrated in a few high months or rely heavily on installation partners and financing pushes, buyer needs to stress-test earnings.

Marketing & Customer Acquisition

Publicly visible: site content, blog posts, social accounts (Instagram, Facebook), GBP pages. Financing partners are used to drive conversions.

Unknown / must obtain:

• Traffic breakdown: organic vs paid channels (Google Ads, Facebook/Instagram, TikTok).

• Conversion rate: site checkout conversion and consultation → install conversion.

• AOV (Average Order Value) & LTV: not provided , crucial given product price points.

• CAC (Customer Acquisition Cost): not provided.

• Repeat / subscription metrics: seller claims recurring revenue via filter changes need concrete LTV: CAC and repeat purchase frequency numbers.

Opportunities noted:

• Scale financing offers (RBC/FinanceIt) for higher AOV conversions; build filter-subscription program to lock in recurring revenue; increase local SEO for installation queries; formalize referral program (seller claims word-of-mouth is strong).

Operations & Fulfilment

Seller statement: nationwide 3PL + Ontario installation network (seller included inventory, manufacturer agreement and installation partners). Public site lists multiple GTA addresses and service claims.

Key operational questions / risks:

• Installation dependency: if 90% of customers use installation partners, buyer inherits operational risk tied to third-party partners (reliability, quality control, liability). Get partner contracts, insurance certificates, SLAs.

• Inventory & 3PL: confirm inventory valuation (on-hand), turnover, lead times and supply reliability (single-source manufacturer risk).

• Warranties & liability: long warranty (seller claims 20 years manufacturer warranty) get warranty documents and understand who bears replacement costs. (Seller claim  request supporting docs.)

• Staff & handover: who handles sales/support today and what needs to be transitioned.

Customer Data & Relationships

Seller claims: “full client list, many recurring customers, high satisfaction and strong referrals.” Public review presence is modest and not visible on major platforms (Trustpilot presence weak/absent).

Requests to make if you proceed:

• Full customer list (hashed where necessary), RFM analysis, repeat purchase rate, refund/chargeback history, support tickets, NPS or CSAT if available, proof of the “90% installation uptake” metric.

Legal & Compliance

Red flags / items to verify:

• Contracts: exclusive manufacturer agreement; financing partner agreements; 3PL & installation partner contracts (including territorial exclusivity and termination terms).

• Licenses & permits: plumbing/installation licensing requirements in Ontario and other provinces; compliance with local building/plumbing codes.

• Insurance: general liability and professional indemnity for installation teams; warranty liability exposure.

• Consumer refunds & chargebacks: check merchant statements for chargeback trends (January dip could be refunds/chargebacks).

• IP & branding: ownership transferability of domain, social accounts, apps, and content.

• Data privacy: if they store customer data, confirm privacy policy and compliance (PIPEDA in Canada).

• Reason for sale: seller reason should be validated (growth plateau, owner burnout, need for cash, partner dispute).

Challenges & Risks

1. Month-to-month volatility — a few extreme low months (Oct/Jan) need explanation; earnings sustainability is the main risk.

2. Operational concentration risk — heavy reliance on third-party installers/partner networks and a single manufacturer (if true).

3. Reputation & review footprint — low presence on major review platforms; this reduces buyer confidence for paid acquisition scaling.

4. Data transparency gaps — no public metrics for traffic, conversion, CAC, AOV or SKU-level margins.

5. Warranty & liability exposure — long warranty claims could create future cash outflows if manufacturer obligations are unclear.

6. Scaling risk — moving from referral-driven growth to paid acquisition will require proven CAC / ROI metrics.

Recommendation

Immediate documents to request (due diligence data room):
(1) Shopify/WooCommerce/Platform access (view-only) — traffic, funnel, conversion, AOV.
(2) Merchant & payment processor statements last 24 months.
(3) Complete GL and tax returns (2 years); seller P&L by month (we have 12 months — request source docs).
(4) Supplier & manufacturer contract (including exclusivity & warranty text).
(5) Installation partner agreements, insurance certificates, and SLAs.
(6) 3PL contract and current inventory report (SKU list, on-hand qty, cost value).
(7) Customer list (anonymized) + repeat purchase & churn data.
(8) Marketing spend history and ad accounts access (Google Ads/Facebook Ads) to verify CAC and ROAS.
(9) Any customer refund/chargeback support docs (esp. for Oct/Jan anomalies).
(10) Evidence of financing partnerships (RBC, FinanceIt) and any referral/revenue share arrangements.

Conclusion

The turnkey ecommerce brand shows an attractive profile: high reported margins, clear recurring-revenue levers (installation + filter replacements), financing options that support higher AOV, and a turnkey setup in a growing market. The asking price (CAD $138,559) implies a fast payback (~2.1 years) and attractive initial ROI , but this thesis depends entirely on the accuracy and sustainability of seller-reported earnings.

Before moving to a final offer, the buyer must secure:

• Platform and merchant access (to verify revenue and fees),

• Supplier/manufacturer and installation contracts (to check durability of the model), and

• A clear explanation and supporting docs for the October/January performance anomalies.

If the seller provides full access and the underlying unit economics (LTV:CAC, AOV, conversion rates) check out, this looks like a compelling acquisition for an operator who can (a) systemize the installation network, (b) professionalize reviews & SEO, and (c) scale paid acquisition predictably.