AquaScience

📅 Agenda

1. Introductions and rapport — learn about Larry’s 41-year journey building AquaScience from a pre-internet direct-to-consumer idea into a dual-channel operation
2. Understand Larry’s current priorities — what’s working, what keeps him up at night, and where he sees AquaScience in 3–5 years
3. Explore the business model — how the local service operation and national eCommerce platform work together
4. Discuss the regulatory landscape — how PFAS, radon, and Legionella mandates are shaping demand
5. Gauge openness to strategic alternatives — listen for what ‘the next chapter’ means to Larry personally
6. Outline Next Chapter’s advisory approach and answer any questions about the process

🎯 Objectives

• Build genuine trust with Larry Casey — he built this over 41 years and needs to know we respect that
• Understand his personal motivation: retirement, partial exit, growth capital, or legacy preservation?
• Learn the real economics behind the $8M revenue — margins, recurring vs. one-time, eCommerce vs. local service split
• Identify any deal-breakers early: employee retention concerns, family involvement, non-competes, or emotional attachment to the brand
• Determine Larry’s timeline expectations — is this a 6-month process or a 2-year runway?
• Assess whether AquaScience is engagement-ready or needs pre-market preparation

💬 Questions to Ask

1. Larry, you started this in 1984 before eCommerce even existed — what made you bet on a direct-to-consumer model that early?
2. How do the local service side and the eCommerce platform feed each other today? Do online customers convert to local service contracts?
3. Of your 11 team members, who are the key people a buyer would need to retain to keep the business running?
4. How much of the $8M is recurring revenue — maintenance contracts, chemical programs, water testing — versus project-based or one-time sales?
5. With PFAS regulations tightening, are you seeing an acceleration in inbound demand? How are you handling capacity?
6. What does your ideal outcome look like — full exit, partial sale with continued involvement, or something else entirely?
7. Is there anything about the business that would be difficult to transfer to new ownership?
8. Have you been approached by buyers before? If so, what turned you off about those conversations?
9. What’s your timeline? Is there a personal milestone or business event driving the timing?
10. If you could design the perfect buyer for AquaScience, what would matter most — price, culture, employee treatment, brand preservation?

📢 Talking Points

• We’ve studied water treatment M&A extensively — PE firms and strategics are paying premium multiples right now because the industry sits at the intersection of aging infrastructure, tightening regulations, and essential-service recession resistance
• AquaScience’s dual-channel model is genuinely rare — most competitors are either local service shops or online retailers, not both. That combination is exactly what sophisticated buyers are looking for
• The PFAS, radon, and Legionella specialization isn’t just a differentiator — it’s becoming compliance-driven demand as federal and state mandates accelerate. Buyers will pay for capabilities they can’t easily build internally
• 100,000+ customers served and 120,000+ service interactions represent a data asset and customer relationship base that took decades to build
• Next Chapter specializes exclusively in home services and trades — we understand the language buyers speak in this space and we know who’s actively acquiring

⚠️ Danger Zones

• Do NOT quote specific valuation numbers ($6.4M–$12.8M range) in a discovery meeting — it’s too early and could anchor the conversation or offend Larry if the number feels low
• Avoid implying the business needs fixing or improvement — Larry has run this successfully for 41 years
• Do not press on succession planning or age-related exit pressure — let Larry volunteer his personal timeline
• Stay away from any suggestion that the eCommerce side is the ‘real’ value and the local service is secondary — Larry likely sees them as equally important
• Do not mention specific buyer names — confidentiality works both directions at this stage
• Avoid rushing to next steps or contracts — this is discovery, not a close

✅ What We Bring

• Next Chapter is a boutique M&A advisory focused exclusively on home services businesses — plumbing, HVAC, water treatment, roofing, and related trades
• We run a controlled, confidential process — Larry’s name and company identity stay protected behind a blind teaser until he approves disclosure to specific buyers
• Our typical engagement targets 40–60 curated buyers across three categories: PE-backed platforms, national strategics like Culligan or Pentair, and family offices with essential-services mandates
• We handle everything — valuation, buyer outreach, negotiations, due diligence management — so the owner can keep running their business
• Water treatment is one of the most active M&A verticals right now, and businesses with AquaScience’s profile are commanding strong multiples

👍 If Positive → Next Steps

• Schedule a deeper financial review meeting — request 3 years of P&Ls, tax returns, and a breakdown of revenue by channel
• Send a follow-up email summarizing what we heard and confirming mutual interest
• Prepare a preliminary valuation range based on actual financials for the next conversation
• Draft a blind teaser for Larry’s review and approval before any market outreach begins
• Begin building the curated buyer list of 40–60 targets across PE platforms, strategics, and family offices
• Discuss and sign an engagement letter with clear terms, timeline, and fee structure

🌿 If Not Ready → Nurture

• Thank Larry sincerely and leave the door open — ‘When the timing feels right, we’d love to have this conversation again’
• Send a brief follow-up email with one useful insight about the water treatment M&A market — add value even if we don’t win the engagement
• Add AquaScience to a 6-month nurture cadence — a quarterly market update or relevant transaction comp
• Ask if Larry would be open to a no-obligation valuation estimate so he has a number in mind for future planning
• Note any specific objections or concerns for future reference — timing, price expectations, emotional readiness