Private acquisition opportunity · Kelowna, British Columbia
Heating, cooling and refrigeration for the Central Okanagan since 2009.
Listing SM-0217 · Version 1.0 · Prepared August 2026 · Fictional demonstration
Kestrel Climate Systems is a twelve person heating, cooling and refrigeration company serving about 250,000 people across Kelowna, West Kelowna, Lake Country, Peachland and Summerland. In 2025 it billed $2,580,000, earned $489,300 for one working owner, and renewed 96% of its commercial maintenance contracts. The owner is retiring; the systems, the team and the customer base are built to keep running through a change of hands.
Seller's discretionary earnings, the $489,300 above, is everything the business paid its one working owner in 2025: profit, salary and benefits together. The asking price is 3.2 times that. The EBITDA reference imagines a hired general manager running the business instead: after a market rate manager at $110,000, $379,300 of profit remains, and the price is 4.1 times that number.
Each one is a fact from the record, not a promise about the future.
About 95% of Kelowna homes are already air conditioned and 81% were built before 2011: the installed base ages on a schedule no economy changes much.
52 commercial contracts renewing at 96% and 240 memberships at 89%, worth about $320,000 a year, steady through the slow months of spring and fall.
Heating and cooling both peak here, so the strongest month runs just 1.78x the weakest: no boom and bust.
Gross margin of 45.2% and operating margin of 12.2% sit in the healthy band CRA filed BC returns show for this trade.
About 80 area contractors, most running one or two trucks. Kestrel runs seven vehicles and twelve people on documented checklists.
Average tenure of 7.9 years, and the Service Manager's Red Seal refrigeration and Class B gas tickets keep both company licences workable through a sale.
Asset sale of the operating business, with a share sale open to discussion.
Planned retirement and relocation to Vancouver Island. No health or distress factors.
The owner is available for a closing 60 to 90 days after an accepted offer.
Eight weeks full time, then advisory support to month six.
Typical for this size: bank or BDC term financing, with 10 to 15% of the price carried by the seller.
Proposed allocation only; subject to agreement and tax advice.
Every number on this page has a section behind it. Keep reading.
Six ways forward, each stated with its cost, staffing, capacity and risk.
Read the section→ 07Drivers, financing and the ten year runway, every assumption adjustable, reversible or removable.
Read the section→ 09The risks stated with their sizes, and the owner's documents behind every figure in this package.
Read the section→A dispatch led service operation: 2,050 service calls, 138 installations and replacements, 688 maintenance visits and 310 air quality and duct jobs in 2025, run from a 4,800 square foot shop by twelve people and seven vehicles.
Utilization across the field team, on the hours the dispatch board actually booked.
Average tickets derived from these counts sit inside published Canadian ranges: service about $466, installations about $8,400 across furnaces, cooling and heat pumps, air quality work about $465. After hours demand runs about 10 to 14% of inbound calls, in line with measured industry data.
Every job moves through the same seven stages. Select a stage for who runs it, the system behind it, and the one thing a buyer should watch.
Every job starts at the desk: the dispatcher answers the call, takes the details, and either books a service visit straight into Jobber or opens a quote request for the advisor.
Customer Service and Dispatch
Jobber and phones
Same day
Booked call or quote request
None
Single CSR; Office Manager covers breaks
Small work is priced on the spot by the technician. Replacement work gets the Comfort Advisor's in-home visit and a written quote inside 48 hours; only installs over $15,000 wait on the owner's pricing.
Comfort Advisor; techs quote small work on site
Jobber quotes
Replacement quotes within 48 hours
Signed quote
Final pricing on installs over $15,000
Commercial pricing playbook lives with the Owner
The dispatcher builds each day on the Jobber board: service calls slotted one to three days out, installs booked one to three weeks ahead, and a documented triage protocol for the summer heat waves.
Customer Service and Dispatch
Jobber board
Service 1 to 3 days out; installs 1 to 3 weeks
Routed day plans
None
Summer heat waves outrun capacity; triage protocol documented
The crews run the day from Jobber mobile with checklists on every job, photograph the finished work, and pull in crane or sheet metal subcontractors where a job needs them.
Technicians and install crew
Jobber mobile, checklists
Service same day; installs 1 to 2 days
Completed work with photos
None
Crane and sheet-metal subs booked per job
The Service Manager reviews every completed checklist inside a day and either closes the job or books the callback. The callback rate is tracked monthly and sat at 2.1% in 2025.
Service Manager
Checklist review and callbacks log
Within 24 hours
Closed job or callback
Escalations only
Callback rate tracked monthly, 2.1% in 2025
Invoices go out on completion through the Jobber to QuickBooks sync, installs collect a deposit up front, and commercial accounts run on net 30.
Office Manager
Jobber to QuickBooks sync
Invoice on completion; deposits on installs
Paid invoice
None
Commercial accounts on net 30
Seasonal maintenance reminders go out from Jobber and come back as booked visits. The renewal outreach cadence is the one piece not yet written down.
Customer Service and Dispatch
Jobber reminders
Maintenance reminders seasonal
Booked maintenance or renewal
None
Renewal outreach cadence not yet written down
| System | Main users | Cost a year | Contract | Transfer |
|---|---|---|---|---|
| JobberField service management: booking, dispatch, quotes, invoicing | All staff | $4,700 | Annual plan, billed in US dollars | Account transfer supported; admin handover at closing |
| QuickBooks OnlineAccounting | Office Manager, Owner, accountant | $1,320 | Monthly | Transferable with books; accountant retains working papers |
| PayworksPayroll | Office Manager | $2,210 | Per run | New account or transfer; either works |
| Google WorkspaceEmail, calendars, drive | All staff | $2,030 | Annual | Domain and accounts transfer with the business |
| Geotab GPSFleet tracking | Service Manager | $4,560 | 36-month, ends 2027-05 | Assignment with provider consent |
| Website, domains and review platformkestrelclimate.ca (fictional), Google Business Profile, review requests | Office | $2,900 | Annual hosting | Domains and profiles transfer with the business |
| Load calculation softwareHeat loss and equipment sizing | Comfort Advisor | $1,180 | Annual licence | Licence reassignment |
The commercial pricing playbook and the membership renewal cadence are the two items the transition plan writes down with the buyer in the first 90 days.
Booking, dispatch, field work, quality control, invoicing and collections run day to day under the Service Manager and the office team.
Final pricing on installations over $15,000, the top 20 commercial relationships, and the commercial contract pricing playbook.
The Service Manager can assume dispatch and quality control immediately, holds Class B gas qualification, and is the named refrigeration mechanic, which keeps both company licences workable after a sale.
Daily operating independence is real; strategic pricing and key commercial relationships are the owner dependency, and the eight week transition plan is built around exactly those.
| Unit | Use | Estimated value | Status |
|---|---|---|---|
| 2024 Ford Transit 250 high roof | Service | $52,000 | Owned |
| 2022 Ram ProMaster 2500 | Service | $36,500 | Financed; about $18,400 cleared at closing |
| 2021 Ford Transit 250 | Service | $33,500 | Owned |
| 2019 Ford Transit 250 | Service | $24,000 | Owned |
| 2018 Chevrolet Express 2500 | Service and shuttle | $17,500 | Owned |
| 2020 Isuzu NPR box truck | Installations | $52,000 | Owned |
| 2021 Ford F-150 | Owner and quotes | $39,500 | Owned |
Fleet and equipment are owner-estimated fair values set against current market listings and street prices (not distributor list prices, which run about double); inventory at cost from the count of March 2026; none independently appraised. The balance sheet carries depreciated book values, shown separately. Included in the sale: the fleet, equipment and tools, and inventory at cost up to $60,000. The one financed vehicle is cleared by the seller at closing.
Six bays, mezzanine parts storage, eight yard stalls, front office and showroom corner. About 4,800 square feet in the Rutland light industrial area.
Base rent $6,500 a month plus about $2,150 in additional occupancy costs: 16.25 and 5.38 dollars per square foot. Stepped from $6,200 in January 2025; the option period reprices at market.
Expires October 31, 2027, with one five year renewal option at market rates.
Assignment and change of control require landlord consent, not to be unreasonably withheld. Third party consent required
Kelowna industrial asked a weighted average of $15.43 per sq ft net at year-end 2025 (Rutland North $17.39); measured additional rents run $5.25 to $6.00. The lease sits on market.
| Supplier | Share of materials | Terms | Notes |
|---|---|---|---|
| Interior Mechanical Supply, Kelowna branch (fictional) | 41% | Net 30, 2% early-payment discount | Volume pricing tier; transfers with a consent letter; two comparable distributors in market |
| Coastal HVAC Parts (fictional) | 22% | Net 30 | Parts and motors; no exclusivity |
| Pacific Refrigerant Services (fictional) | 8% | COD to Net 15 | Refrigerant supply and recovery cylinders |
| Various | 29% | Mixed | Sheet metal stock, controls, sundries |
| Requirement | Held by | Standing | On a sale |
|---|---|---|---|
| Gas contractor licence (Technical Safety BC) | Company. Gas needs no named field safety representative; the company must ensure staff who sign inspections or supervise are licensed gas fitters | Annual renewal, current | On an asset sale the buyer establishes its own licence and $10,000 surety bond before closing; on a share sale the licence continues |
| Surety bond, $10,000 (obligee: British Columbia Safety Authority) | Company, through its insurer | Continuous; lapse suspends the licence | Buyer posts its own bond on an asset sale; bond rider on a name change |
| Refrigeration contractor licence, BPVR Class REF (Technical Safety BC) | Company; the Service Manager is the named refrigeration mechanic and quality control manager (QC program mandatory since January 2026) | Annual renewal, current | Asset sale: new licence, QC program and named mechanic (the Service Manager qualifies); share sale: continues with an update filing |
| Gas fitter certificates of qualification | Owner Class A; Service Manager Class B (GP); two technicians Class B (3-year renewal cycle each) | Current | Held personally; travel with the people |
| Refrigerant handling (approved persons under the BC ODS regulation) | All service technicians; employer keeps the approved-person register and 36-month service logs | Current | Registers and logs transfer with the records |
| City of Kelowna business licence | Company | Annual, current | Reissued to buyer on application |
| Commercial general liability, $5,000,000 | Company | Renews March | Buyer places own policy at closing |
| Fleet and equipment insurance | Company | Renews March | Buyer places own policy |
| WorkSafeBC account, classification unit 721043 | Company | In good standing; clearance letter available | Asset sale: buyer registers fresh at the base rate; share sale: the account and its experience rating continue |
Written safety program, monthly toolbox talks, zero lost-time claims in the last five years; the clean record earns an experience-rating discount below the classification base rate
Most of this work arrives by phone: a furnace out, a cooling season starting, about 168 leads in an average month. Answered well since 2009, those calls have become 1,940 active customers. An active customer is one billed at least once in the trailing 24 months, counted at December 31, 2025.
Nearly nine in ten active customers hold no contract at all: they call when a furnace quits or a cooling season starts, and that demand work is the core of the business. The layer that comes back on its own follows further down.
Retention, at the front door
These are the assumptions the Forecasts section lets a buyer change: spend, cost per customer, and what a won customer is worth.
Seventeen years of answered calls, counted honestly. 45% of 2025 revenue walked in new; the rest came from people and buildings that had called before.
Shares of 2025 revenue. Repeat means memberships, contracts and customers who simply call again; it is never blended with contracted revenue alone.
Residential carries the count; commercial and property management carry weight per customer. Hover a row for all three measures.Tap a row for all three measures.
About 12% of active customers hold a membership and most customers hold neither: they call when something needs fixing, and that demand work is the core of the business. The two recurring families below are different instruments and are never added into one number.
A homeowner never appears on this list: residential revenue arrives as a crowd, in small pieces. One property manager, though, holds forty buildings behind a single phone number, which is how one relationship can be worth $118,700 a year. Even that one carries just 4.6% of 2025 revenue.
Residential collects in about 24 days; commercial accounts run net 30 and collect in about 38.
About 6% of prior year active customers did not return in 2025: roughly $96,000 of 2024 revenue that did not repeat, more than replaced by 512 new customers.
The largest customer (4.6% of revenue) renews in March 2027 on a 12 year relationship and a 96% commercial renewal history. Week one of transition introduces the buyer.
Average tenure of 7.9 years across a Service Manager of nine years, four service technicians, an installation lead, an apprentice who runs the maintenance route, and a three person office plus a part-time bookkeeper. Employees have not been told about the potential sale; continuity below is labelled honestly, never promised.
Who does the work, what they hold, and what the whole workforce costs.
10 full time, 1 part time, plus the owner
Runs the service side day to day: assigns and dispatches every call, sets the quality bar and signs off on completed work, and takes the escalation when a job goes sideways. Named refrigeration mechanic on the company licence, so the tickets stay alive without the owner.
Red Seal Refrigeration and AC Mechanic; Class B gas fitter (GP); named refrigeration mechanic on the company's refrigeration licence and quality control manager
$88,000
The strongest diagnostician in the company: takes the hardest service calls, the intermittent faults and the commercial refrigeration work the other technicians hand up. Mentors the apprentice at the bench.
Red Seal RSE
$76,500
Age 61; retirement possible within 2 to 3 years. The apprentice pipeline and the open posting are the plan.
Runs a full residential and light commercial service day: heating and cooling repairs, gas work under the Class B ticket, and maintenance visits between calls.
Class B gas fitter
$71,000
Carries the same service load: repairs, gas work under the Class B ticket, and the seasonal maintenance push in spring and fall.
Class B gas fitter
$66,500
Service calls and maintenance work while progressing through the refrigeration apprenticeship pathway; picks up installation support in spring and fall.
Refrigeration apprentice pathway
$58,000
Leads the two person install crew through every changeout and new installation: sheet metal fabrication, setting the equipment, commissioning, and the final walkthrough with the customer.
Sheet metal and install specialist
$69,000
Runs the maintenance visit route through spring and fall and rides with the senior technician the rest of the year, building toward the refrigeration ticket.
HVAC apprenticeship
$30,400. Partial year from the May 2025 hire; annualized about $47,000
Keeps the money moving: enters the books, chases receivables, runs payroll every cycle, and covers the phones when the dispatcher steps away.
$60,000
The voice of the company: answers every inbound call, books the work into Jobber, and routes the day for the field crew.
$49,500
Single person on the desk; the Office Manager covers breaks and holidays.
Runs residential replacement sales end to end: the in-home visit, load sizing, the quote and the follow-up. Compensation includes commission on closed installations.
$58,500
Month end reconciliations and oversight of the books behind the Office Manager's entry work.
$28,000
About $10,000 of market rate work; the premium is an SDE add-back and the function is replaceable by an outside bookkeeper. Ends at closing.
Field labour includes field wages plus employer burden and sits inside direct costs; the remaining lines sit inside operating expenses. Owner compensation is added back in the SDE bridge under Financials. BC Employer Health Tax is nil with payroll under the $1,000,000 exemption. Under BC employment standards, employment generally continues through a sale of the business, so tenure and its entitlements carry to the buyer. Buyer due diligence required
Employees have not been told about the potential sale. Nothing below is a commitment by any employee.
12-year relationship, second gas qualification, named on the refrigeration licence; no stated plans to leave; no written commitment
ExpectedEmployees have not been told about the potential sale
Not Yet DiscussedAge 61; apprentice pipeline and open posting are the plan
UncertainReplaced by outside bookkeeper at about $10,000 per year
Ends at closing8 weeks full-time included, then advisory support; see transition
ProposedFinal pricing on installations over $15,000, the top 20 commercial relationships, and the commercial pricing playbook. The eight week transition is built around handing exactly these over.
The Service Manager can assume dispatch and quality control immediately and keeps both company licences workable. The apprentice pipeline and the open posting are the plan for the senior technician, 61, who may retire within two to three years.
Field wages sit modestly below Thompson Okanagan medians (Red Seal about $83,000, gas fitter about $87,000). Tenure and the benefits plan carry retention today; a buyer should budget for wage reviews, and the Forecasts section carries a wage growth driver for exactly this.
The three-year record first, then every line of the statements, then how the profit the statements report becomes what an owner takes out. Every figure below comes from the compiled statements and adds up to the dollar.
Revenue grew 10.8% in 2024 and 12.6% in 2025. Seller's discretionary earnings, what one working owner takes out, grew 26.5% from 2023 to 2025, and gross margin, what the work keeps after equipment and crews are paid, went from 44.2% to 45.2%. Every total on this page ties to the compiled statements to the dollar.
The owner's desk, after close
Rest on any bar, or tap it, for the figure and what it means.
All three share one dollar scale, so a bar in one column can be read against a bar in another.
One dollar scale across the view. Seller's discretionary earnings grew 26.5% from 2023 to 2025.
A margin is a share of revenue: of every dollar billed, how many cents stayed at that line. The rails run from zero to fifty percent. How these compare to the trade: CRA-filed BC industry data (NAICS 238220, 2024): average gross margin 45.0%, net 11.5%, with profitable firms averaging 15.2%. Kestrel's 45.2% gross margin and 12.2% operating margin sit squarely in the healthy band, and its 19.0% SDE margin sits beside the measured HVAC transaction median of 20.5%.
Each bar is one year's revenue dollar, cut into where it went. In 2025, 54.8 cents of every dollar went to delivering the work, 33.0 cents to running the company, and 12.2 cents were left as reported operating profit, before the owner's pay and the add-backs are put back in the bridge below.
Swipe sideways for the other years.
| Nine lines, three years | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | $2,068,000 | $2,292,000 | $2,580,000 |
| Direct costs | $1,153,900 | $1,262,900 | $1,413,800 |
| Gross profit | $914,100 | $1,029,100 | $1,166,200 |
| Operating expenses | $671,600 | $754,100 | $850,900 |
| Reported operating profit | $242,500 | $275,000 | $315,300 |
| Seller's discretionary earnings | $386,900 | $439,100 | $489,300 |
| Operating margin | 11.7% | 12.0% | 12.2% |
| SDE margin | 18.7% | 19.2% | 19.0% |
| Revenue growth | first year shown | +10.8% | +12.6% |
Year ended December 31, 2023. Compiled statements (an accountant assembled them from the company's records), in Canadian dollars.
Bad debt of $14,500 from a builder insolvency; collections tightened afterward
Seller's discretionary earnings for 2023, $386,900 (what one working owner takes out), is built line by line in the bridge at the end of this section.
Year ended December 31, 2024. Compiled statements (an accountant assembled them from the company's records), in Canadian dollars.
One-time commercial retrofit project of about $48,000 inside installations; did not repeat in 2025
IAQ revenue dipped in 2024 after a technician left mid-year; recovered in 2025
Refrigerant recovery station purchase of $22,000 expensed through repairs; treated as a non-recurring add-back
Seller's discretionary earnings for 2024, $439,100 (what one working owner takes out), is built line by line in the bridge at the end of this section.
Year ended December 31, 2025. Compiled statements (an accountant assembled them from the company's records), in Canadian dollars.
Seller's discretionary earnings for 2025, $489,300 (what one working owner takes out), is built line by line in the bridge at the end of this section.
Every line, three years side by side. Change is 2025 against 2024.
Swipe sideways for the other years.
| Line | 2023 | 2024 | 2025 | Change |
|---|---|---|---|---|
| Installations and replacements | $889,000 | $1,056,000 | $1,161,000 | +9.9% |
| Service and repair | $806,900 | $862,300 | $955,000 | +10.8% |
| Residential maintenance plans | $54,200 | $62,400 | $71,700 | +14.9% |
| Commercial maintenance contracts | $203,500 | $216,600 | $248,000 | +14.5% |
| Indoor air quality and duct services | $114,400 | $94,700 | $144,300 | +52.4% |
| Total revenue | $2,068,000 | $2,292,000 | $2,580,000 | +12.6% |
| Equipment and materials | $668,900 | $738,400 | $792,000 | +7.3% |
| Field labour, wages and burden | $392,000 | $424,000 | $507,600 | +19.7% |
| Subcontractors | $57,500 | $61,500 | $68,200 | +10.9% |
| Permits, refrigerant and disposal | $35,500 | $39,000 | $46,000 | +17.9% |
| Total direct costs | $1,153,900 | $1,262,900 | $1,413,800 | +11.9% |
| Gross profit | $914,100 | $1,029,100 | $1,166,200 | +13.3% |
| Office and administrative payroll | $139,759 | $162,364 | $196,000 | +20.7% |
| Owner management salary | $88,000 | $92,000 | $96,000 | +4.3% |
| Employer costs, office and owner | $29,800 | $31,900 | $31,000 | -2.8% |
| Staff benefits plan | $20,536 | $23,858 | $28,800 | +20.7% |
| Marketing and lead generation | $61,323 | $71,241 | $86,000 | +20.7% |
| Rent | $72,000 | $74,400 | $78,000 | +4.8% |
| Additional occupancy and utilities | $28,237 | $32,804 | $39,600 | +20.7% |
| Fuel and vehicle operating | $65,601 | $76,211 | $92,000 | +20.7% |
| Insurance | $27,453 | $31,893 | $38,500 | +20.7% |
| Software and technology | $17,541 | $20,378 | $24,600 | +20.7% |
| Professional fees | $12,978 | $15,077 | $18,200 | +20.7% |
| Repairs and shop equipment | $27,700 | $38,600 | $21,400 | -44.6% |
| Office and administration | $23,388 | $27,171 | $32,800 | +20.7% |
| Banking and merchant fees | $15,973 | $18,556 | $22,400 | +20.7% |
| Training and safety | $8,985 | $10,438 | $12,600 | +20.7% |
| Telecommunications | $6,988 | $8,118 | $9,800 | +20.7% |
| Uniforms and small tools | $10,838 | $12,591 | $15,200 | +20.7% |
| Bad debt | $14,500 | $6,500 | $8,000 | +23.1% |
| Total operating expenses | $671,600 | $754,100 | $850,900 | +12.8% |
| Reported operating profit | $242,500 | $275,000 | $315,300 | +14.7% |
| Operating margin | 11.7% | 12.0% | 12.2% | |
| Seller's discretionary earnings | $386,900 | $439,100 | $489,300 | +11.4% |
Fiscal 2025, month by month: the most recent fiscal year, which is also the most recent twelve months. Click a month in the chart, or use the arrows, and its figures follow.
Strongest month July, $297,310; weakest March, $167,475. Strongest over weakest: 1.78x. Kelowna runs about 3,460 heating degree days against 216 cooling degree days, with both a real winter and a sharp summer; that balanced two-peak year is why the swing is 1.78x rather than the near-3x seen in cooling-dominant markets.
† The compiled statements run to operating profit, with no depreciation, interest or financing charges above that line, so a month's operating profit is also its cash generated before financing. Collection timing can shift the cash a few weeks behind the work: residential pays in about 24 days, commercial accounts in about 38.
Swipe sideways for the other months.
| Line | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $215,971 | $193,321 | $167,475 | $175,316 | $205,155 | $248,439 | $297,310 | $278,479 | $193,901 | $200,001 | $205,362 | $199,270 | $2,580,000 |
| Direct costs | $108,488 | $99,632 | $91,728 | $97,862 | $115,151 | $138,127 | $158,797 | $151,080 | $109,308 | $112,039 | $118,870 | $112,718 | $1,413,800 |
| Gross profit | $107,483 | $93,689 | $75,747 | $77,454 | $90,004 | $110,312 | $138,513 | $127,399 | $84,593 | $87,962 | $86,492 | $86,552 | $1,166,200 |
| Payroll, office and owner | $29,318 | $29,318 | $29,318 | $29,318 | $29,316 | $29,316 | $29,316 | $29,316 | $29,316 | $29,316 | $29,316 | $29,316 | $351,800 |
| Marketing and lead generation | $6,020 | $5,676 | $7,224 | $8,944 | $8,600 | $7,396 | $6,880 | $6,536 | $8,772 | $8,428 | $6,020 | $5,504 | $86,000 |
| Rent and occupancy | $10,302 | $10,222 | $9,906 | $9,589 | $9,430 | $9,589 | $9,906 | $9,906 | $9,509 | $9,589 | $9,747 | $9,905 | $117,600 |
| Fuel and vehicle operating | $7,912 | $7,360 | $6,992 | $7,176 | $7,728 | $8,280 | $8,832 | $8,648 | $7,360 | $7,176 | $7,176 | $7,360 | $92,000 |
| Administration, software and fees | $9,903 | $8,494 | $10,392 | $8,337 | $8,594 | $8,970 | $9,394 | $9,231 | $8,496 | $8,548 | $8,595 | $8,846 | $107,800 |
| Insurance, repairs and other operating | $7,221 | $7,183 | $7,611 | $7,725 | $7,258 | $10,918 | $6,918 | $6,918 | $7,610 | $7,610 | $7,610 | $11,118 | $95,700 |
| Total operating expenses | $70,676 | $68,253 | $71,443 | $71,089 | $70,926 | $74,469 | $71,246 | $70,555 | $71,063 | $70,667 | $68,464 | $72,049 | $850,900 |
| Operating profit | $36,807 | $25,436 | $4,304 | $6,365 | $19,078 | $35,843 | $67,267 | $56,844 | $13,530 | $17,295 | $18,028 | $14,503 | $315,300 |
| Operating margin | 17.0% | 13.2% | 2.6% | 3.6% | 9.3% | 14.4% | 22.6% | 20.4% | 7.0% | 8.6% | 8.8% | 7.3% | 12.2% |
| Cash before financing | $36,807 | $25,436 | $4,304 | $6,365 | $19,078 | $35,843 | $67,267 | $56,844 | $13,530 | $17,295 | $18,028 | $14,503 | $315,300 |
Start with the profit the statements report. Put back the owner's own pay (eligible owner compensation), then the personal, discretionary and one-time items identified line by line (the add-backs). Nothing else, and every item is listed beneath. Rest on a column for what it is.
Every column stands on zero. The pale base is the total carried in from the last step, the copper piece is what that step adds, and the final column restates the whole result.
19.0% of revenue. The asking price of $1,549,000 is 3.2x this figure.
Open a line for what the item is, why it is put back, when it was reported and how the Forecasts model treats it.
| Reason | Reported in | In forward scenarios |
|---|---|---|
| The selling owner's salary for running the company. A buyer chooses their own compensation, so the line is added back to state earnings before any owner pay. | Fiscal 2025: $96,000. Also 2023: $88,000, 2024: $92,000. | Replaced in the Forecasts model by the buyer compensation control, preset at $110,000. |
| Reason | Reported in | In forward scenarios |
|---|---|---|
| CPP, EI and WorkSafeBC premiums the company pays on the owner's salary. They follow the salary out. | Fiscal 2025: $5,800. Also 2023: $5,400, 2024: $5,600. | Follows the buyer compensation setting in the model. |
| Reason | Reported in | In forward scenarios |
|---|---|---|
| The personal-use share of the owner's pickup running through the company. The pickup is included in the sale; the personal use ends with the seller. | Fiscal 2025: $9,600. Also 2023: $8,700, 2024: $9,100. | No forward cost carried. |
| Reason | Reported in | In forward scenarios |
|---|---|---|
| Personal cover for the owner, separate from the staff benefits plan, which stays with the team. | Fiscal 2025: $6,400. Also 2023: $5,900, 2024: $6,100. | Ends with the seller. Any buyer cover is a personal choice inside buyer compensation. |
| Reason | Reported in | In forward scenarios |
|---|---|---|
| Community sponsorships and travel chosen at the owner's discretion, outside the marketing program that generates leads. | Fiscal 2025: $14,200. Also 2023: $11,600, 2024: $12,800. | Not carried as a forward cost. A buyer who continues it funds it from discretionary earnings. |
| Reason | Reported in | In forward scenarios |
|---|---|---|
| A family member works in the office at pay above the market rate for the role. Only the excess above market is added back; the role itself stays in the statements. | Fiscal 2025: $18,000. Also 2023: $15,000, 2024: $16,500. | Forward years keep the role at market rate, so the excess ends at closing. |
| Reason | Reported in | In forward scenarios |
|---|---|---|
| A dispute with a former employee, settled and closed in fiscal 2025. | Fiscal 2025: $12,000. One time. | Does not repeat in forward years. |
| Reason | Reported in | In forward scenarios |
|---|---|---|
| A full website and brand refresh completed in 2025. The refreshed asset transfers with the sale. | Fiscal 2025: $12,000. One time. | Does not repeat in forward years. |
One-time items differ by year: $9,800 (shop flood repair) in 2023; $22,000 (refrigerant recovery station purchase, expensed) in 2024. Each year's items are itemized in its SDE schedule.
Every opportunity below stands on the 2025 record: what is true today, the specific move, the evidence behind it, what it costs, who does the work and what can go wrong. None of it is automatic and none of it is promised: each one is a direction for a buyer to weigh on their own numbers.
240 home memberships renewing at 89% and 52 commercial contracts at 96%: the recurring base every path below stands on.
Select a row. The dossier underneath holds the position, the evidence, the costs and the risks.
240 home memberships and 52 commercial contracts; about 15% of active customers
89% and 96% renewal rates; 2,050 service calls a year to convert from; the measured trade benchmark supports about 250 memberships per $1M of service sales
Offer at every service call, CSR follow-up cadence, technician incentive
Within current office capacity
About 420 more visits a year at full success; fits the slow spring and fall months
12 to 24 months
Discount load if oversold
CSR follow-through and technician buy-in; the $299 price holding
Diagnostic fee $129; the measured BC cluster sits at $149, and the one published Kelowna labour rate is $140 per hour
Rate card unchanged since 2023; measured market rates run above it
Move diagnostic to $149, align repair book pricing
None
No change
Immediate
Churn on price-sensitive customers; modelled with customer loss
Nothing beyond communicating the new rate card
One crew; installs book 1 to 3 weeks out in peaks
138 installs in 2025 with summer waitlists; one-day changeouts are the measured norm, so a crew carries 3 to 4 a week in season
Hire two installers, upfit a van
Two hires
About $520,000 added install capacity
5-month ramp
Hiring market; utilization in the slow months
Two successful hires in a tight trades market; a van upfit; summer demand holding
52 sites, 96% renewal
Property management relationships ask for more coverage; measured commercial maintenance pricing $300 to $785 per rooftop unit per year
Dedicate Comfort Advisor one day a week to commercial proposals
Reallocation
Fits current field team to about 68 sites
12 months
Slower sales cycle
Comfort Advisor time freed one day a week; the property management relationships that already ask for coverage
$144,300 in 2025 with idle spring and fall capacity
March and April utilization dips visible in the monthly detail; measured Canadian duct cleaning pricing $394 to $999 per home
Seasonal campaigns, bundle with membership visits
Within current team
About $60,000 without new hires
Two rounds of spring and fall
Lower margin than core service
Campaign timing in the March, April and October dips; bundling with membership visits
18% of replacements in 2025
Kelowna is 95% air conditioned and 81% of homes predate 2011: a replacement market where dual-fuel and heat pump options fit the existing base. BC runs 11x Alberta's federally supported heat pump volume. Policy caution is real: Canadian heat pump shipments fell in 2025 while furnaces grew 12%, and standard-stream BC rebates for gas homes ended in April 2025; income-qualified rebates (up to $13,000) remain
Certify one more tech, stock two lines, quote dual-fuel on every replacement
Training only
Within install crew with overflow subs
One selling season
Rebate policy volatility; shipment trend reversed in 2025
One technician certification; two stocked equipment lines; rebate programs as they stand
Growth in this package is priced with its risk, never promised.
Nothing here is fed into Forecasts. A buyer who wants to test an opportunity sets their own assumptions there: the revenue, the costs, the timing, and how far it could go wrong.
Costs, capacity limits, customer attrition and execution risk ride with every opportunity. A benefit never travels without its price.
The starting line stays the measured 2025 record, and Start over in Forecasts brings every number back to it.
Explore what your first ten years of ownership could look like. Try different assumptions, test your ideas, and see how the numbers respond. The future isn't fixed. Start exploring the possibilities.
Every number starts where the owner left it. Move one and the picture beside it moves.
Last year: $2,580,000. Up or down, in percent.
Rent, office wages, insurance, vehicles and the rest: $676,900 last year. Job costs (materials, field labour, subcontractors: $1,413,800) follow sales by themselves.
Paid to you first, every year. It stays where you set it unless you add a raise.
Paid every month out of what the business makes.
The 7.0% default reflects measured Canadian prime of 4.45% (August 2026) plus a typical acquisition spread; the buyer can set any rate. A vendor take-back of 10 to 15% is the common Canadian structure and can be modelled by reducing the financed amount.
Their $118,700 of sales is gone from next year on.
Off: the levers above move the whole business. On: pricing, customers, marketing, staff, cost lines and rent each move on their own, on top of the levers. Turning them on changes nothing until you move one.
Fuel, insurance, software and admin also follow the Running costs lever above; materials and subcontractors follow sales. These move a line on top of that.
| Line | Amount |
|---|
The table continues sideways. The Year column stays put.
| Year | Profit | Your pay | Loan payments | Principal | Interest | Left for you | Short by | Owing at start | Owing at end |
|---|
The table continues sideways. The Year column stays put.
| Year | Sales | Job costs | Gross profit | Running costs | Profit | Profit margin | Your pay | Loan payments | Left for you |
|---|
Not counted unless you enter them elsewhere: Personal income taxes, Corporate taxes beyond the source statements, Working-capital changes, Capital expenditures unless enabled, Transaction, legal, accounting and loan fees unless entered, Replacement equipment unless enabled.
The owner's own pay and each add-back are taken out of the go-forward costs exactly once. One-time items are taken out once and never repeated as a yearly benefit. The model then subtracts the pay you set, and the loan payments when a loan is on.
Your own tests on the owner's figures. Not a forecast, not a promise, not a valuation, not a lending decision.
How knowledge, relationships, systems and operating control move from the owner to a buyer: a staged plan with honest labels, where nothing is called committed until it is papered. The financial story lives under Financials, and document access lives under Diligence. This is the handover itself.
weeks full time, included, then advisory support to month 6. Proposed
Each phase is proposed and negotiable; the advisory period's exact shape is one of the four open terms below.
The workforce. Employees have not been told about the potential sale. Under BC employment standards employment generally continues through a sale, and continuity is labelled role by role under Team, honestly, never promised.
The owner today. Final pricing on installations over $15,000, the top 20 commercial relationships and the commercial pricing playbook. The layers below map how each one moves.
Terms the offer conversation settles; nothing here is fixed in advance.
Third-party steps the roadmap's first stage assembles, led by the seller with the buyer's counsel.
Five stages, from the work before closing to independent operation. Select a stage: each card shows what happens, who leads it, the owner's part, and what it depends on.
The quiet stage that decides how clean day one feels. While the papers move, the seller assembles every consent on the confirmation list, builds the systems and access inventory with the buyer's counsel, and starts the licensing path the chosen structure requires.
Consents assembled, buyer's Technical Safety BC licences and surety bond in progress (asset sale) or continuity filings prepared (share sale), systems inventory and access list built, WorkSafeBC clearance letter obtained
Seller with buyer's counsel
High
Clean day-one transfer
Landlord and contract consents arriving on time; the share or asset decision, which sets the licensing path
Landlord and contract consents
Requires confirmationThe team hears it together, from both owners in the same room, on day one. Customers see no change: the phones answer the same, the vans roll the same, and the week runs as dispatched.
Team told together, customer-facing continuity, accounts and phones transferred, banking live
Both
Full-time
Business runs without interruption
New bank and merchant accounts open and tested before closing day; on an asset sale, the buyer's licences and bond already in hand
Nothing open at this stage
The relationship month. The owner leads sit-down introductions to the top 20 commercial accounts and the supplier branches, rides along on service days, and walks the buyer through how work is priced.
Top-20 customer introductions, supplier introductions, ride-alongs, pricing walkthrough
Owner leads
Full-time
Relationships handed over
The owner's full time availability, and customer calendars for the in-person introductions
Nothing open at this stage
The writing-down stage. The two knowledge gaps this package names in the open, commercial contract pricing and the membership renewal cadence, get documented with the buyer in working sessions, against live quotes.
Commercial pricing playbook written with the buyer, quoting shadowed, membership renewal cadence documented
Owner and buyer
Tapering to two days a week
Owner knowledge on paper
Live quoting to shadow through the period, and the working sessions holding their place in the calendar
Nothing open at this stage
The letting go. The buyer leads and the owner answers the phone. Seasonal planning for the summer peak happens together once, then the advisory cadence winds down toward independent operation.
Advisory calls, seasonal planning for the summer peak, escalation support
Buyer leads
On-call
ProposedIndependent operation
Advisory terms agreed in the purchase agreement, one of the four open negotiation terms
Advisory terms
Requires confirmationFinal pricing on installations over $15,000, and the escalations that clear the Service Manager. The daily flow, booking through collection, already runs without the owner.
Banking authority and the final look at the books. The Office Manager runs entry, receivables and payroll day to day; month end oversight sits with the part time bookkeeper, whose role ends at closing.
The top 20 commercial relationships are personal. The largest, 4.6% of revenue on a 12 year relationship, renews March 2027 and is introduced in week one.
Trading terms and the volume pricing tier with the largest distributor, 41% of materials, negotiated by the owner. The tier moves with a consent letter.
Day to day the crew answers to the Service Manager. The owner decides, with the buyer, how and when the team is told: the plan is together, at closing.
Commercial contract pricing lives in the owner's head, and seasonal planning for the summer peak is the annual rhythm. Both are named training subjects with dates on the roadmap.
The owner, side by side through the full time weeks. Field standards need no teaching: the documented checklists carry them, and the Service Manager holds the quality bar.
Introductions and ride-alongs first, then shadowed quoting, then working sessions that write the pricing playbook and the renewal cadence down with the buyer.
Across the 8 full time weeks, finishing through the taper to month 6. Proposed
A buyer who prices, buys and plans without the owner, holding documents that did not exist before the handover.
The pricing knowledge is the owner's to hand over, and days 31 to 90 write it down with the buyer. Senior diagnostic knowledge stays with the team it lives in; the apprentice pipeline is how it spreads.
Employees have not been told about the potential sale, and nothing in this package is a commitment by any employee. What transition planning needs to know:
Employment carries on. Under BC employment standards, employment is generally treated as continuous through a sale, so tenure and its entitlements carry to the buyer.
Buyer due diligence requiredThe licences stay workable. The Service Manager holds the qualifications and the named mechanic role both company licences lean on, and can hold dispatch and quality control from day one.
One role ends by design. The part time bookkeeping by the owner's spouse ends at closing, replaced by an outside bookkeeper at about $10,000 a year.
| Relationship or account | What it needs | How it moves |
|---|---|---|
| Top 20 commercial customersthe top 10 alone are 18.3% of revenue | Introduction | Sit-down introductions across weeks 1 to 8, owner led. The largest account, 4.6% of revenue and renewing March 2027, is introduced in week one. |
| Supplier accounts41% of materials with the largest distributor | Consent letter | The volume pricing tier moves with a consent letter; branch introductions happen in the first 30 days. No exclusivity anywhere. |
| The landlordlease to October 2027 plus a five year option | Consent | Assignment and change of control need landlord consent, not to be unreasonably withheld. The consent letter is assembled before closing. |
| Commercial maintenance contracts52 active | Consent on 7 | 41 transfer as written, 7 need the customer's consent, and 4 carry clauses for counsel to read before closing. |
| Residential memberships240 active | Transfer | Move with the business; no consents involved. |
| Fleet tracking (Geotab)36 month contract to May 2027 | Assignment | Assigned to the buyer with the provider's consent; the Service Manager runs it today. |
| Bank and merchant accounts | New accounts | Opened new by the buyer and tested before closing, so payment rails are live in week one. |
| Insurancegeneral liability and fleet | New policies | The buyer places its own policies at closing; both current policies renew each March. |
| WorkSafeBCclearance letter before closing | Clearance letter | Fresh registration at the base rate on an asset sale; on a share sale the account and its experience rating continue. |
| Technical Safety BCgas and refrigeration licences | Licensing path | New licences, quality control program, named mechanic and surety bond on an asset sale; continuity filings on a share sale. The Service Manager qualifies as the named mechanic. |
Every consent here also sits in the confirmation list at the top of this section. This table is where each one lands, and who moves it.
The before closing stage builds a single systems and access inventory with the buyer's counsel. This is what it covers, and how each item moves. Passwords and credentials never appear in this package; access changes hands at closing, through the inventory.
Vehicles, equipment and inventory are itemized under Operations with values, and the systems above are tabled there with costs and contract terms. This layer is about access: who can get in, and when that changes.
The 8 week introduction plan, the Service Manager's continuity, and a 96% commercial renewal history.
Working sessions in days 31 to 90 write both down with the buyer, against live quotes.
Told together at closing. Average tenure is 7.9 years, employment carries on under BC standards, and wages sitting modestly below market is the one watch item, with a driver for it in Forecasts.
The apprentice pipeline, an open posting since June 2026, and documented diagnostics checklists.
The Service Manager holds the qualifications and the named mechanic role; filings begin before closing, and a share sale continues everything.
Assembled in the before closing stage, led by the seller with the buyer's counsel.
The full risk register, the market items included, sits under Diligence. These six are the ones the handover itself must answer.
Operational control. The board, the crew and the quality bar answer to you, run day to day by the Service Manager.
Systems and access. Every account, key, code and register transferred against the inventory, working.
The money processes. Invoicing, collections, payroll and month end, understood and running.
The relationships. The top 20 accounts and the supply chain, introduced in person on their own sites.
The team. Duties, pay and continuity clear, role by role.
Independence. The owner reachable on advisory terms, and not needed for the routine week.
That is the standard the roadmap is built backwards from. None of it is promised on its own; it is what the stages, the labels and the open items are all pointed at.
What a careful buyer will ask, the proof already on the table, and the thirty documents waiting behind the door. This section ends at the room where you read them all.
Seven things any serious buyer's accountant raises in the first week. Each one is here already, with its size and what stands against it. Open the ones you care about.
Top 10 customers are 18.3% of revenue
8-week introduction plan; Service Manager continuity; 96% commercial renewal history
One of four service technicians
Apprentice pipeline, open posting, documented diagnostics checklists
Wage reviews likely; roughly $25,000 to $40,000 a year to reach medians across the field team
Tenure and benefits carry retention today; scenario model carries a wage-growth driver for exactly this
4.6% of revenue
12-year relationship; renewal history; introduction in week one
On an asset sale the buyer needs its own gas and refrigeration licences and bond before operating
Service Manager holds the qualifications and the named-mechanic role; filings begin before closing; a share sale continues everything
About $9,000 equipment by 2027
Two stations already compatible; normal course capex
March operating profit about $4,300
Membership billing smooths cash; $75,000 line of credit available and unused
The door is at the end of this section. Access opens after a Senior Deal Advisor calls you.
The record, shelved and labelled
Four records this package publishes before anyone asks: the filed tax record, six years of capital spending, the WorkSafeBC file and who prepared the numbers.
| Year | Income for tax | Rate | Tax |
|---|---|---|---|
| 2023 | $231,900 | 11% | $25,509 |
| 2024 | $261,800 | 11% | $28,798 |
| 2025 | $300,700 | 11% | $33,077 |
Income for tax purposes differs from reported operating profit through capital cost allowance and small timing items. Combined federal small business (9%) and BC (2%) rate of 11% applied on active business income within the $500,000 business limit. With a December 31 year end, balances are due March 31 and returns June 30; filed and paid, no amounts in dispute. Notices of assessment were received as filed for all three years, and T2 Schedule 141 reports that a compilation engagement was conducted (line 302).
Account in good standing; clearance letter available on request (the clearance date is in the text of the letter, not the letter's date)
Zero lost-time claims in the last five years; two minor first-aid entries in 2024
Net rate $1.94 per $100 of payroll in 2025 against a $2.06 base, earned by the clean record; the 2026 base is $2.26. Classification 721043: plumbing, heating, vent, residential air conditioning installation or repair.
On a share sale the experience rating follows the company; on an asset sale to an unaffiliated buyer it generally does not, and the buyer starts at the base rate. Assets of a firm owing WorkSafeBC can carry a statutory lien, which is why the clearance letter comes before closing.
Okanagan Ridge CPA, Chartered Professional Accountants (fictional firm), Kelowna, BC
Compilation engagement under Canadian Standard on Related Services (CSRS) 4200; no audit, no review, no assurance expressed
4.9 stars across roughly 640 reviews (fictional)
The basis of accounting applied in the preparation of the balance sheet of Kestrel Climate Systems Ltd. and the statement of income for the year then ended is on the historical cost basis and reflects cash transactions with the addition of: accounts receivable less an allowance for doubtful accounts; inventory valued at the lower of cost and net realizable value; prepaid expenses; property, plant and equipment amortized on a declining balance basis over their estimated useful lives; accounts payable and accrued liabilities; deferred membership revenue; and revenue recognized on the accrual basis as work is completed.
This is the room's own index. Open a category to see its files. Every title is a real file, held privately under the company's name.
The door is directly below. Access opens after a Senior Deal Advisor calls you.30 files · 9 categories
Succession Market
Behind this package sits a private data room: the owner's statements, returns, contracts and equipment records, held under the company's own name on Succession Market.
If this reads like the business you came looking for, the room is the next step: the source documents, your own questions, and a decision made with everything in front of you.
A Senior Deal Advisor calls you before access opens.
A Senior Deal Advisor will call you to confirm who you are. Access opens after the call.
On a real package, your access is personal and every open of every file is logged. This demonstration logs nothing.
One click, no forms. This package was released to you personally, so we already know who is asking.
A Senior Deal Advisor calls, confirms who you are, and takes your first questions while they have you.
On a real package, your own private access to the owner's documents, with every open of every file logged to you. This demonstration logs nothing.
A confirmation email is on its way to you.
A demonstration. In a real package this request reaches a Senior Deal Advisor.
