Commercial Kitchen Exhaust Cleaning Company
This article offers an in-depth acquisition strategy for a commercial kitchen exhaust cleaning company operating under NFPA 96 compliance standards. The business serves restaurants, hotels, universities, corporate cafeterias, healthcare kitchens, and food production facilities, providing mandated exhaust hood, duct, and fan system cleanings on a recurring basis. Clients are required to maintain regular service to comply with local fire codes and insurance policies, creating a stable and predictable book of contract-based business.
Generating $3.68 million in annual revenue with $805,000 in adjusted EBITDA, the company maintains over 700 recurring service contracts. Approximately 89% of revenue is derived from recurring work scheduled monthly, quarterly, or semi-annually. The remaining 11% includes emergency cleanups, hood installations, grease containment solutions, and filter exchanges. Technicians operate on a route-based model, servicing clients during off-hours—typically late nights or early mornings—to avoid disrupting daytime operations.
Due to its contractual revenue base, regulatory necessity, and repeatable service model, this business is an ideal SBA 7(a) acquisition candidate. A new buyer can grow the business through geographic expansion, technician hiring, cross-selling complementary services, and strategic tuck-in acquisitions of small owner-operator firms without formal systems or compliance tracking.
Proposed SBA 7(a) Deal Structure
Given the high percentage of recurring revenue and standardized service delivery, the transaction supports a conventional SBA-backed structure:
Purchase Price: $3.22 million (4.0x EBITDA)
SBA Loan: $2.415 million (75%)
Buyer Equity Injection: $322,000 (10%)
Seller Financing (Subordinated): $483,000 (15%) amortized over 6 years with 12-month interest-only
Key protective terms:
20% clawback on seller note if more than 10% of contract volume is lost within 180 days
Seller receives a $40K bonus if buyer adds $300K in net new recurring revenue within 12 months
Seller to remain on call for regulatory and technician onboarding support for 6–9 months post-close
Client Profile and Revenue Segments
Clients served:
Independent restaurants and QSR chains: 36%
Hotels and hospitality venues: 22%
Hospitals and assisted living kitchens: 15%
Corporate cafeterias and food courts: 13%
Universities and private schools: 9%
Food manufacturers and prep kitchens: 5%
Revenue breakdown:
Recurring exhaust hood and duct cleaning: $3.27M
Emergency response cleaning and fire damage mitigation: $180K
Rooftop grease containment system installs: $105K
Filter exchange programs and upsells: $75K
Hood light upgrades and fire suppression coordination: $50K
Contracts are typically 1–3 years with built-in frequency schedules mandated by fire code—monthly, quarterly, or semi-annual depending on grease volume. Work is often billed monthly with ACH autopay or credit card on file.
No single client represents more than 5.2% of revenue. The top 50 accounts total just under 60% of revenue.
Technician Team, Routes, and Scheduling
Staffing:
10 field techs (trained in NFPA 96 and OSHA safety)
2 team leads responsible for route planning and quality checks
1 dispatcher and scheduler (works evenings)
1 compliance officer for reporting and safety logs
1 general manager (non-owner)
Technicians work in 2-person night crews, each completing 2–3 service stops per night. Routes are organized by zip code, service frequency, and access requirements. Technicians are equipped with before-and-after photo capture systems and issue digital service reports required by clients for inspections and insurance.
Post-close talent plan:
Roll out stay bonuses for crew leads and techs
Expand technician capacity through local trade school recruitment
Train internal “next gen” team leads to allow for expansion into new regions
Facility, Fleet, and Equipment
Facility:
6,800 sq ft industrial flex space
Pressure washing bays and equipment storage
Degreaser inventory and chemical containment area
Route planning and scheduling office
Employee locker room with showers
Lease: $5,200/month, 3 years remaining with 5-year renewal option
Fleet:
6 customized box trucks (2017–2023), with water tanks, power washers, grease vacs, and safety gear
FMV: ~$310,000
All GPS-enabled and insured for off-hour commercial activity
CapEx plan:
Add one new crew vehicle for regional expansion: $52K
Upgrade scheduling software and client dashboard: $12K
Replace 2 aging power washer units: $9K
Sales and Growth Infrastructure
Current sales sources:
Referrals from insurance inspectors and fire marshals
Property managers and facility maintenance contracts
Local restaurant supply vendors and grease trap cleaners
SEO and PPC ads for “kitchen hood cleaning + [city]”
Annual marketing budget: ~$28,000
Growth strategies:
Acquire 1–2 local operators with <$500K revenue to fold into route schedule
Expand into new metro by launching a satellite crew using shared facility space
Introduce fire suppression inspection and maintenance (either direct or via partner)
Create bundled fire safety packages for hotels and medical clients
Begin offering daytime cleaning for commercial commissary kitchens
Financial Overview
Revenue: $3.68M
COGS (labor, vehicles, chemicals, maintenance): $1.84M
Gross Profit: $1.84M
SG&A: $1.035M
Adjusted EBITDA: $805K (21.8%)
Profit by service:
Contract cleaning: 60–65%
Emergency cleanups: 70%
Containment install: 65%
Filter replacement and parts: 75%+
Compliance and reporting services: 80%+
AR aging is minimal. Over 85% of clients are billed via autopay. Emergency cleanups and installs are paid on completion or require deposits. Technicians file photo and timestamped job reports through a proprietary CRM.
Compliance, Licensing, and Risk Management
Fully licensed for commercial exhaust cleaning under city and state codes
All technicians trained on OSHA confined space, PPE, ladder safety
Annual fire department audit track record with zero violations in last 3 years
Fully insured: $2M GL, $1M auto, $1M workers comp, $1M umbrella
Safety reports, inspection logs, and grease disposal manifests retained for minimum 5 years. Clients receive compliance packets post-service via email or dashboard.
Working Capital and Transition Plan
Payroll float: $95K–$110K
Equipment and software upgrades: $65K
Seller transition and compliance handoff: $30K
Technician hiring and training campaign: $20K
Expansion crew vehicle and tool costs: $52K
Ideal Buyer Profiles
Route-based service businesses (pest control, window cleaning, HVAC)
PE-backed fire/life safety roll-ups seeking compliance-based add-ons
SBA-qualified operators with B2B field service or compliance experience
Facility services businesses seeking to cross-sell to existing property portfolios
Post-Close Execution Plan
Reaffirm top 100 contract accounts and lock in renewal rates
Launch technician referral program and new hire class
Begin planning satellite launch for adjacent metro coverage
Audit each route’s margin and adjust frequency/crew allocation
Deploy client portal to improve SLA compliance visibility
Conclusion
This commercial exhaust cleaning business sits at the intersection of public safety, regulatory compliance, and repeatable B2B service. With predictable contract revenue, route-based operations, and a trained technical team, it provides a rare SBA-acquirable opportunity in a high-retention industry. The business is well-insulated from recession risk and offers numerous pathways to scale from geographic expansion and service bundling to strategic acquisitions. For any buyer looking to acquire a systemized, durable, and scalable compliance-driven service business, this represents a highly attractive and defensible platform.
