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Next Chapter M&A Advisory

AquaScience

Lawrence "Larry" Casey Water Treatment / eCommerce Wyoming, RI Est. 1984
Confidential Advisory Proposal — Prepared by Next Chapter M&A Advisory — March 2026
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💬
A Personal Note

Larry, you built AquaScience from the ground up 41 years ago. before the internet existed as a sales channel. and turned it into one of the most trusted water treatment companies in the northeast. You've served over 100,000 customers, earned a 4.8 Google rating, and positioned the company at the exact intersection of where regulations and buyer demand are heading.

You want to sell AquaScience at the right time to the right buyer. Someone who values what you've built, keeps the team together, and pays you what the business is actually worth.

That's exactly what Next Chapter does. We represent business owners like you. people who built something real with their hands and their reputation. and we find the buyer who sees that value and pays for it.

Based on our preliminary review, we believe AquaScience is positioned to achieve a valuation in the range of $6.4M to $12.8M, representing approximately 4.0x to 8.0x your real profit after we add back owner perks.

This proposal outlines our approach, timeline, fee structure, and the specific steps we will take to get you the best outcome.

📈
Water Treatment M&A Market Overview
Current Multiples
4.0x - 8.0x
Active Buyers
25+
Recent Deals (12 mo)
15+

Why Now

Recent Comparable Transactions

Company Type Deal Size Multiple Buyer Type Year
Regional Water Treatment $12M 6.5x PE Platform 2025
Water Services Provider $8M 5.2x Strategic 2024
Environmental Services $15M 7.0x PE Rollup 2025

The water treatment industry is experiencing a generational shift in M&A activity. Private equity firms and strategic consolidators have recognized that water treatment sits at the intersection of three mega-trends: aging infrastructure requiring remediation, tightening EPA and state-level water quality regulations (particularly around PFAS 'forever chemicals'), and the essential-service nature of clean water that makes these businesses recession-resistant. In 2024-2025, water treatment and environmental services companies traded at EBITDA multiples of 4.0x to 8.0x, with premium valuations going to companies demonstrating recurring revenue, regulatory specialization, and strong customer density.

The buyer universe for a company like AquaScience is exceptionally deep. Strategic acquirers include national water treatment platforms like Culligan, Pentair, and WaterCare that are actively rolling up regional operators to build density. Private equity groups. particularly those with existing home services or environmental services platforms. view water treatment as an adjacent vertical with superior retention economics. Infrastructure-focused funds have also entered the space, attracted by the essential-service characteristics and regulatory tailwinds that create durable demand regardless of economic cycles.

What makes this moment particularly favorable is the scarcity premium. There are very few water treatment companies in the northeast with AquaScience's combination of four decades of operating history, a functioning eCommerce platform, regulatory specialization in PFAS and radon, and the kind of Google rating and BBB accreditation that signal genuine operational excellence. Buyers are competing for a limited supply of quality targets, and companies with proven recurring revenue models and specialized capabilities command premiums that exceed standard industry multiples.

📊
AquaScience — At a Glance
Trade Vertical
Water Treatment / eCommerce
Year Founded
1984
Location
Wyoming, RI
Employees
11
Annual Revenue
$8.0M
EBITDA Margin
~20%
Revenue Mix
[TO BE CONFIRMED]% Service / [TO BE CONFIRMED]% Equipment Sales
Recurring Revenue
~35%
Licenses
State water treatment certifications, PFAS remediation, radon mitigation
Fleet Size
[TO BE CONFIRMED]
Service Area
Rhode Island and New England
📖
Your Company Story

AquaScience was founded in 1984 by Lawrence Casey on a promise that still lives on the company's website today: to bring the world's finest water treatment equipment and well water supplies directly to the public at the lowest prices in the country. That was before the internet existed as a commercial channel. and yet Larry built a direct-to-consumer model that anticipated by decades what the rest of the industry would eventually try to replicate. Forty-one years later, AquaScience has served over 100,000 customers and completed more than 120,000 service calls in a three-year window alone, establishing itself as one of the most trusted water treatment providers in the northeastern United States.

What makes AquaScience particularly remarkable is the breadth of its competitive moat. The company operates both a physical service business out of Wyoming, Rhode Island, and a national eCommerce platform. a dual-channel model that very few water treatment companies have successfully built. The eCommerce component creates a low customer-acquisition-cost revenue stream that compounds over time through organic search traffic, while the local service operation generates high-margin recurring revenue through maintenance contracts, chemical programs, and water testing services. This hybrid model means AquaScience captures value at every stage of the customer lifecycle.

The company has also positioned itself at the intersection of several powerful regulatory tailwinds. AquaScience holds specialized capabilities in PFAS remediation, radon treatment, and Legionella control. three areas where federal and state regulations are tightening rapidly, creating mandatory demand. As municipalities and homeowners face increasing scrutiny on water quality, companies with AquaScience's depth of expertise and 41-year track record become essential service providers rather than discretionary purchases. The company's BBB accreditation and 4.8 Google rating reflect the kind of earned trust that money cannot buy and competitors cannot shortcut.

Perhaps most telling is the customer impact. One Rhode Island customer's review captures it simply: 'They added a filter and now my water tastes great.' Behind that one sentence is the reality of what AquaScience delivers every day. families trusting their drinking water, homeowners protecting their property investment, and a founder who has spent four decades making that possible.

Your Top 3 Strengths
1

41-year operating history with a dual-channel model (local service + national eCommerce) that creates both recurring revenue and a scalable digital acquisition engine. a combination almost no competitor has replicated

2

Specialized PFAS, radon, and Legionella treatment capabilities positioned directly in the path of accelerating federal and state regulatory mandates, converting what was once discretionary spending into compliance-driven demand

3

Over 100,000 customers served, 120,000+ service calls in three years, BBB accreditation, and a 4.8 Google rating. an earned reputation that represents decades of compounding trust and is the single hardest asset for any acquirer to build from scratch

Interactive Business Profile

Adjust these sliders to see how changes in your business metrics impact what the market is likely to offer. All changes are saved automatically.

Estimated Annual Revenue $8.0M
Employee Count 11
Commercial vs Residential Split 30% / 70%
Commercial: 30% Residential: 70%
Recurring Revenue % 35%
Years in Business 42
💰
What the Market Wants to Pay
Important context: This estimate reflects what buyers can determine using only publicly available information — no conversations with you, no financials you've shared, no inside knowledge of your operation. Think of this as your floor — the worst-case baseline knowing nothing about your business from you personally. The real number is almost always higher once buyers understand your full story, your team, your customer relationships, and the value drivers only you can share.
Conservative
$0
4.0x EBITDA
Likely
$0
5.5x EBITDA
Optimistic
$0
8.0x EBITDA
Calculating...

Key Valuation Drivers

  • Recurring revenue from maintenance contracts, chemical programs, and water testing creates predictable cash flow that buyers value at premium multiples
  • PFAS, radon, and Legionella specialization aligns with accelerating regulatory mandates. buyers will pay for capabilities they cannot easily build internally
  • eCommerce platform with established SEO rankings provides a scalable national revenue channel with low incremental customer acquisition cost
What Drives Your Valuation — Your Real Profit Levers

These are the specific factors that push your valuation multiple up or down. Understanding them is the first step to maximizing what a buyer will pay.

▲ Value Drivers (Strengths)

Recurring Filter/Salt Delivery Revenue
Monthly delivery routes create predictable cash flow that buyers value at 2-3x premium over one-time equipment sales.
PFAS/Radon Regulatory Specialization
EPA mandates on PFAS (4 ppt MCL) and state radon requirements convert discretionary spending into compliance-driven demand.
Dual-Channel Model (Service + eCommerce)
National eCommerce platform provides scalable customer acquisition that most local service companies cannot replicate.
100K+ Customer Installed Base
Massive installed base represents untapped recurring revenue activation. the highest-ROI post-acquisition value creation play.
41-Year Operating History
Four decades of brand trust compounds into customer retention, referral networks, and premium pricing power that cannot be bought.

▼ Value Opportunities

Owner Dependency Risk
If Larry Casey's relationships and knowledge walk out the door, the acquisition risk spikes and multiples compress 1-2x.
Recurring Revenue Penetration
Current recurring revenue percentage may underweight the installed base potential. activating service agreements on existing customers is key.
Single-Location Operations
Geographic concentration in Rhode Island limits addressable market; multi-location expansion would command geographic premium.
Employee Bench Depth
With 11 employees, key-person risk extends beyond the owner. losing 1-2 senior technicians could impact service capacity materially.
Financial Reporting Sophistication
Accrual-based financials, job costing, and segmented reporting by service line dramatically improve buyer confidence and due diligence speed.
📅
Our Process — What Happens and When

Here is exactly what happens from the day you sign the engagement letter to the day you hand over the keys. No surprises, no mystery. Every step is planned.

1

Phase 1 — Preparation & First Contact

Week 1
  • ✅ Preliminary research and buyer identification already completed
  • Identify and document your real profit after we add back owner perks
  • Create the marketing book we build about your business
  • ✅ Target buyer list already built. ready for outreach (strategic, PE, independent)
  • Prepare management presentation materials
  • Set up secure data room
2

Phase 2 — Active Marketing

Weeks 2-4
  • Send blind teaser to qualified buyers (no company name)
  • Execute NDAs with interested parties
  • Share the marketing book with signed buyers
  • Manage buyer Q&A process
  • Collect initial offers (Indications of Interest)
  • Evaluate and rank every offer
3

Phase 3 — Negotiation

Weeks 5-7
  • Facilitate in-person meetings with top bidders
  • Request formal Letters of Intent (LOIs)
  • Negotiate price, terms, structure, and transition plan
  • Select preferred buyer and sign LOI
  • Coordinate with your legal counsel on deal structure
4

Phase 4 — Closing

Weeks 7-9
  • Manage the due diligence process (buyer verifying your numbers)
  • Coordinate with buyer's lenders and advisors
  • Support purchase agreement negotiation
  • Handle working capital and any earnout details
  • Close the deal and facilitate ownership transfer
Expected Total Timeline: 6-9 months from engagement to close. We keep you informed every step of the way with weekly updates and a dedicated point of contact.
🎯
Who Will Buy Your Business

We don't just put your business on a listing and hope someone calls. We build a curated list of buyers who are actively looking for exactly what you have, and we go to them directly.

Strategic Buyers (Active in Water Treatment)

  • Culligan International
  • Pentair
  • Grundfos
  • Evoqua Water Technologies (Xylem)
  • Essential Utilities

Buyers Backed by Investment Groups

  • BDT & MSD Partners (backed by BDT Capital Partners)
  • Advent International (backed by Advent International GPE X)
  • US Water Services (backed by Alaris Capital Partners)

Independent Buyers & Search Funds

15 active independent buyers in water treatment and related services

Regional Buyers

  • Whitewater Management
  • Regional NE Water Operators

Our Buyer Funnel

Total Universe
60+
Outreach
40
NDAs Signed
12
Initial Offers
5-8
Final Offers
2-3
💲
Fee Structure Options

Click on the option that works best for you. Your selection is saved automatically. The engagement fee is credited 100% against the success fee at closing — it's not an additional cost.

Option A
Performance Only
Engagement Fee
$0
Success Fee
10%
"You pay nothing until we deliver"
Option C
Premium
Engagement Fee
$15,000
Success Fee
5.000000000000001%
"Full white-glove service with dedicated deal team"

Fee Illustration — What You'd Actually Pay

Engagement fee credited 100% against the success fee. These numbers show the total cost at different sale prices.

Sale Price Success Fee Engagement Fee Credit Effective Rate
$6.4M $448K $10K 6.8%
$8.8M $616K $10K 6.9%
$12.8M $896K $10K 6.9%
The engagement fee proves you're serious about selling. The success fee proves we're serious about getting you the best price. Both are aligned.
🚀
How We Would Sell Your Business
📋
1
Preparation & First Contact
Week 1
  • ✉️ Letters mailed
  • 📞 Call campaign launched
  • 💼 LinkedIn outreach
  • 📄 CIM prepared
  • 🎯 Buyer list ready
Research already done — we start outreach Day 1
📬
2
Active Marketing & Outreach
Weeks 2 – 4
  • 📞 Follow-up calls
  • 📧 Email sequences
  • 🔒 NDAs executed
  • 📖 CIM distributed
  • 📋 Q&A managed
Letters to Culligan, Grundfos, Pentair and 32 other qualified buyers
🤝
3
Negotiation & Deal Selection
Weeks 5 – 7
  • 📊 IOIs received
  • 👥 Mgmt meetings
  • 💰 LOIs negotiated
  • ⚖️ Terms finalized
  • ✍️ LOI signed
2–3 competing offers on the table
4
Closing & Transfer
Weeks 7 – 9
  • 🔍 Due diligence
  • 📝 Purchase agreement
  • 💵 Working capital
  • 🏁 Close & transfer
  • 🎉 Deal done
You get paid
Next Steps

One Decision. One Deadline.

Sign the engagement letter and return it with the engagement fee by April 14, 2026.
We begin Phase 1 on April 21, 2026.
Upon signing, we start immediately. No waiting. Your dedicated deal team is assigned on day one.

✓ Thank You!

Look for an email in the next 24 hours with your engagement letter and next steps.

Your selected fee structure and business profile have been saved. We'll use these as the starting point for our conversation.

This proposal is confidential and intended solely for Lawrence "Larry" Casey.

© 2026 Next Chapter M&A Advisory. All rights reserved.