Fireplace sales and service business, BC: first read

Source: Business Finders Canada listing MLS 1599 (asset sale), read 2026-10-28. Listing figures are the seller's.

Fireplace sales and service business, British Columbia, listed at $802,000 as an asset sale with reported annual sales of $1,200,000 and inventory valued at $482,000 (listing figures). More than ten years of operating history; a specialty retailer serving homeowners, builders, renovators and designers; a large-format showroom in 4,413 square feet of leased premises, with a warehouse and storage lease running to March 2029; experienced staff; the owner is retiring. Cash flow is not published; last updated 2026-09-29.

First read: with no cash flow stated, the question is what the price requires. At 20% buyer equity, a 15% vendor take-back and a 65% term loan, debt service would be about $125,000 a year, so the business needs about $157,000 of cash flow after a market wage for the buyer to reach 1.25x coverage. That is about 13% of the stated sales, a demanding margin for a showroom retailer with installers, rent and stock to carry. About 60% of the price is inventory, so its age and condition matter more than the goodwill: fireplace and stove models are replaced and decertified over time, and display units sell at a discount. An asset sale also means the dealer authorizations, the installer licences and the builder accounts each have to move to the buyer.

The three things a buyer should check first

1. Three years of statements with the owner’s pay shown separately, and the cash flow after a market wage for whoever runs the showroom and the installs.
2. A dated inventory count at cost by model and age, with display and discontinued units separated, before the $482,000 is accepted as part of the price.
3. Which manufacturer dealer agreements transfer, who holds the gas fitting and installation licences, the showroom lease term beyond 2029 renewals, and the share of sales from builders.

A Deal Risk Screen on this listing would rebuild the earnings, score the four risk pillars, set out the price the cash flow supports at a stated coverage, and give the five questions to ask before an LOI. Two sample screens are on the samples section of the home page.

This note is general information from public listing figures, not advice on this purchase. Deal Diligence has no connection to the seller, the broker or the business.