Dual Water Treatment & Radon Mitigation Platform

$1.4M

Revenue

$655K

SDE

3.3x

Multiple

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Full Editorial Writeup

This is a unique dual-entity acquisition combining an established water treatment service business (operating since 2003) with a manufacturing company (established 2016) that produces patented radon water mitigation technology. The service business serves 5,000+ active customers across New England with recurring revenue streams, while the manufacturing arm produces proprietary radon mitigation systems achieving 99.9% remediation rates, significantly outperforming industry standards.

The platform creates vertical integration from manufacturing through service delivery, with the newer manufacturing entity producing both first-generation systems already shipping to customers and second-generation prototypes currently being tested at customer locations with delivery scheduled within 3-4 months. The business operates with entrenched referral channels and has built substantial brand equity over its 23-year operating history, generating $653,000 in seller discretionary earnings on $1.44M in gross revenue.

The strategic value lies in the combination of stable cash-flowing service operations with high-margin proprietary technology that can be scaled across a broader geographic footprint. With tightening regulatory environments around water quality creating tailwinds for the industry, this platform is positioned to capture market share through superior technology performance and an established customer base that can be monetized through expanded service contracts and dealer networks.

Why we like it

Earnings Quality: $653K SDE on $1.44M gross revenue translates to a 45% margin, which is exceptionally strong for a service business. The dual revenue model creates stability through recurring service contracts while the manufacturing component adds higher-margin product sales that aren't tied to labor hours.
Durability & Moat: The patented radon mitigation technology achieving 99.9% remediation creates a genuine competitive advantage in a commoditized industry. With 23 years of operating history and 5,000+ active customers, the business has built substantial switching costs and brand equity that new entrants cannot easily replicate.
Market Tailwinds: Increasing regulatory scrutiny around water quality and radon testing creates structural demand growth for remediation services. The New England market has high radon occurrence rates due to granite bedrock, making this a geographically advantaged position in a necessity-driven market.
Operator Advantage: The vertical integration from manufacturing to service delivery allows for margin expansion and quality control that pure service providers cannot match. An experienced operator can leverage the existing customer base for cross-selling opportunities and expand the dealer network to scale the proprietary technology beyond the current footprint.

How to improve it

Service Contract Conversion: Immediately audit the 5,000+ customer base to identify customers receiving one-time services and convert them to recurring maintenance contracts. With proper CRM implementation and systematic outreach, this could add $200-400K in high-margin recurring revenue within 90 days.
Second-Generation Product Launch: Accelerate the rollout of the next-generation AcceL-AerAtor E99 system currently in prototype testing. Focus on the two customer locations for case studies and testimonials, then launch to the broader customer base with upgrade incentives to drive immediate revenue and margin expansion.
Dealer Network Expansion: Systematically build out the dealer and distributor network beyond New England by targeting plumbing contractors, water treatment specialists, and home service companies in adjacent markets. Start with bordering states where radon is prevalent and regulatory environments are similar.
Digital Marketing Investment: Implement SEO-optimized website, Google Ads campaigns targeting radon testing keywords, and content marketing around water quality regulations. The technical expertise and patent portfolio provide substantial content opportunities to drive organic lead generation and establish thought leadership.
Cross-Selling Optimization: Develop systematic processes to offer the full range of water treatment and radon services to existing customers. Many customers likely only use one service when they could benefit from multiple solutions, representing untapped wallet share within the existing base.
Geographic Market Analysis: Conduct detailed analysis of radon occurrence rates and water quality issues in markets beyond New England to identify the highest-value expansion opportunities. Focus on markets with similar regulatory environments and demographic profiles to the current customer base.
Operational Efficiency: Implement route optimization software for service calls, inventory management systems for the manufacturing operation, and technician productivity tracking to improve margins. The 4-employee structure suggests there are opportunities to systematize processes that currently rely on tribal knowledge.
Strategic Partnership Development: Build relationships with home inspection companies, real estate agents, and environmental testing firms to create systematic referral channels. These partnerships can provide consistent lead flow without the customer acquisition costs of direct marketing.

Diligence notes

Patent Portfolio Analysis: Conduct thorough IP due diligence on the radon mitigation patents, including remaining patent life, potential infringement risks, and freedom to operate analysis. Verify that the 99.9% remediation claims are substantiated by independent testing and understand any regulatory approval requirements for the technology.
Customer Concentration Risk: Analyze the customer base composition to identify any concentration risks among the 5,000+ customers, including geographic clustering, customer tenure, and average revenue per customer. Request customer aging reports and churn analysis to understand retention rates and identify any concerning trends.
Manufacturing Capacity and Scalability: Examine the current manufacturing setup, production capacity, supply chain relationships, and quality control processes for the radon mitigation systems. Understand the capital requirements to scale production and identify any single-source supplier dependencies that could create operational risks.
Financial Reconciliation: The listing shows $2.185M revenue in one place and $1.44M gross revenue in another, creating confusion about the actual revenue base. Request detailed P&L statements for both entities to understand the true revenue composition, cost structure, and how SDE is calculated across the dual-entity structure.

Source

Originally listed on BizBuySell. View original listing →