Regional Commercial Kitchen Equipment Repair and Maintenance Company
This article outlines an acquisition strategy for a regional commercial kitchen equipment repair and maintenance company serving restaurants, hotels, hospitals, universities, and food production facilities. The company specializes in the repair, installation, and preventative maintenance of ovens, fryers, refrigeration units, steam tables, dish machines, and HVAC systems within commercial kitchens. It is a factory-authorized service provider for multiple national equipment brands and holds preferred vendor status with several national QSR and full-service restaurant chains.
The company generates $5.42 million in annual revenue with $1.16 million in adjusted EBITDA. Approximately 62% of its revenue comes from recurring preventative maintenance contracts, while the remaining 38% stems from emergency repair calls, installations, and manufacturer warranty work. The firm operates a fleet of branded service vans stocked with proprietary parts, uses route-based dispatching, and maintains an online work order platform that integrates with third-party property management and facilities software.
Because of its recurring contract base, critical service function, and limited competition due to certification requirements, this business is a strong SBA 7(a) acquisition candidate. A buyer can scale by growing technician count, acquiring competitors with minimal tech infrastructure, integrating equipment sales, and adding multi-location chain accounts through national facilities platforms.
Proposed SBA 7(a) Deal Structure
Given its predictable cash flow and high-margin service contracts, the business supports the following SBA 7(a) structure:
Purchase Price: $4.64 million (4.0x EBITDA)
SBA Loan: $3.48 million (75%)
Buyer Equity Injection: $464,000 (10%)
Seller Financing (Subordinated): $696,000 (15%), amortized over 6 years with 12-month interest-only
Protective terms:
20% clawback on seller note if chain contract renewal drops below 85% in first 6 months
$65K seller bonus if buyer closes 5 new chain clients or $750K in recurring contracts in year one
Seller remains as technical director and key account manager for 12 months to assist with continuity
Client Base and Revenue Segments
Client breakdown:
Multi-location restaurant groups (QSR, casual dining): 34%
Hospitals and healthcare campuses: 21%
Hotel kitchens and event centers: 17%
Universities and school districts: 12%
Catering and food manufacturing facilities: 10%
Government/institutional cafeterias: 6%
Revenue by service line:
Preventative maintenance contracts (quarterly, monthly): $3.36M
Emergency repair calls (24/7 response): $1.07M
Equipment installation and retrofits: $520K
Warranty services and OEM billing: $320K
HVACR system service (walk-ins, rooftop units): $150K
Maintenance contracts cover routine cleaning, calibration, inspections, and parts replacement. Emergency services are billed hourly with trip charges and after-hours premiums. OEM relationships include direct reimbursement from factory portals for warranty dispatches.
Top 40 clients account for 61% of total revenue, with no client exceeding 8.2%. Many have contracts signed via national property platforms like ServiceChannel or Corrigo.
Technician Force and Field Operations
Personnel:
10 certified kitchen equipment technicians (gas, electric, refrigeration, HVAC)
2 junior techs in apprenticeship roles
1 installation team of 2 for equipment retrofits
2 dispatchers managing job flow and CRM coordination
1 operations director and 1 general manager (non-owner)
All techs hold EPA 608, CFESA certifications, and state licensure where applicable. Vans are GPS-tracked and stocked daily with high-turnover parts. Technicians input job notes, photos, and part orders via mobile app in real time.
Post-close technician strategy:
Hire 2 junior techs and enroll them in CFESA certification pipeline
Expand technician bonus program based on first-call completion and client satisfaction
Establish bilingual customer support line to assist QSR clients with remote diagnostics
Facility, Fleet, and Equipment Assets
Facility:
12,000 sq ft building with service bay, parts warehouse, and training center
Shipping dock for receiving bulk equipment
Demo kitchen for tech training and customer demos
Parts storage with barcode inventory system
Lease: $7,200/month, 3 years remaining + 5-year extension option
Fleet:
12 fully stocked service vans (branded, insured)
Inventory of critical parts (~3,000 SKUs across refrigeration, gas, electric)
HVAC tools, gas leak detection systems, recovery equipment
FMV: ~$670,000 (fleet, inventory, testing equipment)
CapEx needs:
Replace 3 aging vans with fuel-efficient models: $118K
Add digital asset management tools to fleet: $8K
Install part scanner and reorder automation: $11K
Sales Infrastructure and Growth Opportunities
Sales strategy:
Direct relationships with facilities managers and corporate real estate teams
Manufacturer referrals for warranty and installation jobs
SEO/PPC for “commercial kitchen repair + [city]”
Inbound work orders through ServiceChannel, Corrigo, and SMS Assist
Marketing spend: ~$42,000/year
Growth opportunities:
Acquire 1–2 local competitors lacking tech stack or national chain access
Launch on-demand emergency repair subscription plans for independent restaurants
Develop OEM parts e-commerce site for clients with internal maintenance teams
Expand into new metro using spare install team and one senior tech
Add verticals: dish machine leasing, HVAC install, or turnkey kitchen install/repair bundles
Financial Overview
Revenue: $5.42M
COGS (labor, parts, fuel, warranty claims): $2.42M
Gross Profit: $3.0M
SG&A: $1.84M
Adjusted EBITDA: $1.16M (21.4%)
Service margins:
Preventative maintenance: 65–70%
Emergency repair: 60–65%
Equipment installation: 45–50%
Warranty work: 30–40%
HVAC systems: 55–60%
Invoices are issued weekly or monthly depending on client preference. Emergency jobs are typically COD or net-15. OEMs and national platforms settle within 30–45 days through automated payment systems.
Compliance, Risk, and Safety
Technicians certified in EPA 608, OSHA 10/30, CFESA
Fully compliant with local permitting and license registration
All vehicles DOT-compliant and equipped with spill kits and fire extinguishers
Insured: $2M GL, $1M auto, $1M umbrella, $1M workers comp
Zero open claims, safety violations, or warranty fraud cases. Company maintains ongoing training logs and safety audits per quarter.
Working Capital and Transition Plan
Payroll and part float: $125K–$140K
Van replacement and digital upgrades: $129K
Seller consulting and transition for large accounts: $32K
Technician recruitment and CFESA training: $18K
CRM API sync with ServiceChannel and Corrigo: $9K
Ideal Buyer Profiles
SBA-qualified operator with route-based or technician-led business experience
PE firm building service and maintenance roll-up with commercial exposure
OEM parts distributor seeking downstream service integration
HVAC, electrical, or fire safety company expanding into kitchen services
Post-Close Execution Plan
Transition top 25 clients with in-person visits and vendor portal updates
Migrate CRM data to upgraded version with technician KPI dashboards
Recruit 2 junior techs and begin Q3 expansion into second metro
Launch ServiceChannel marketing to win additional QSR contracts
Begin diligence on two under-capitalized repair firms with $1M–$2M in revenue
Conclusion
This commercial kitchen equipment repair and maintenance company offers recurring revenue, emergency premium pricing, and brand recognition in a niche vertical critical to foodservice operations. Its ability to serve both national and local chains, supported by factory certifications and skilled labor, makes it an exceptionally attractive SBA 7(a) acquisition. With a focused expansion strategy, integrated technology, and reliable client base, the business is positioned for durable cash flow and scalable geographic growth under new ownership.
