Commercial Hood Cleaning and Grease Abatement Company
This article outlines the strategic acquisition plan for a commercial kitchen exhaust hood cleaning and grease abatement company that specializes in servicing restaurants, school cafeterias, hospital kitchens, hotels, and food production facilities. This business operates within a regulatory niche, offering services required by NFPA 96 fire code compliance, often mandated quarterly or semi-annually by local fire departments, insurers, and health inspectors.
The company generates $3.44 million in annual revenue and $725,000 in adjusted EBITDA. Approximately 88% of the company’s revenue is recurring through contracts requiring periodic hood and duct cleaning, including roof fan degreasing and grease trap inspection. The remainder includes emergency cleanings, compliance remediation for failed inspections, and vent system upgrades. With trained technicians, specialized equipment, and high client retention, the business offers defensible recurring income and low AR exposure.
This type of business is a strong SBA 7(a) acquisition target because of its code-mandated recurring services, route-based labor model, and technician training program. A new owner can scale quickly by expanding crews, acquiring smaller operators with poor compliance processes, and launching new verticals like exhaust system repairs, filter subscription services, and multi-location contract management.
Proposed SBA 7(a) Deal Structure
Due to the highly recurring service model and regulatory anchoring, this business fits neatly into an SBA-financed transaction:
Purchase Price: $2.9 million (4.0x EBITDA)
SBA Loan: $2.175 million (75%)
Buyer Equity Injection: $290,000 (10%)
Seller Financing (Subordinated): $435,000 (15%) amortized over 6 years with 12-month interest-only
Protective terms:
25% clawback on seller note if recurring fire-code contract revenue retention drops below 85% within 180 days
$40K seller bonus if buyer secures $300K+ in new recurring contracts within 12 months
Seller to provide 9 months of transition support including training, licensing, and sales support
Client Base and Revenue Composition
Client categories:
Restaurant chains (national/regional): 38%
Hospital kitchens and long-term care facilities: 21%
K–12 and university cafeterias: 14%
Hotel and resort kitchens: 13%
Food production/commissary kitchens: 9%
Correctional institutions and military bases: 5%
Revenue composition:
Quarterly/semi-annual hood system cleaning: $2.4M
Emergency degreasing/remediation jobs: $420K
Grease trap inspection and jetting services: $310K
Filter exchange and subscription program: $190K
Compliance consulting and fire marshal support: $120K
Most clients operate under contracts that align with fire code requirements (quarterly for high-volume kitchens, semi-annual for others). Invoices are issued after each visit with photos, inspection checklists, and technician certifications.
Top 40 clients generate 62% of revenue, with no single customer exceeding 7.2%. Multi-location chains are serviced using clustered routing and service windows that reduce labor costs.
Technician Workforce and Field Operations
Personnel:
6 full-time two-person cleaning crews trained in NFPA 96 compliance
1 licensed grease trap inspector and vacuum truck operator
1 scheduling coordinator and compliance liaison
1 operations manager (non-owner)
1 general manager who handles city fire inspection programs and large bids
All crews are trained in chemical handling, confined space protocols, OSHA fall protection, and proper certification practices. Field techs use truck-mounted hot water degreasers, rotary scrubbers, and HEPA vacuums to perform after-hours cleanings with minimum disruption.
Post-close labor strategy:
Recruit and train 2 additional crews to expand capacity by 30% in 6 months
Implement per-visit incentive tied to photo quality, customer satisfaction, and on-time completion
Introduce bilingual training and compliance tracking for growing Hispanic workforce
Facility, Fleet, and Equipment
Facility:
5,500 sq ft industrial facility
Equipment bay and chemical wash-down area
Filter storage and fulfillment room
Training space and digital compliance office
Lease: $4,800/month with 3 years left and 5-year extension option
Fleet and gear:
7 branded box trucks with roof access ladders and degreasing rigs
1 vacuum truck for grease trap service
Full inventory of degreasers, hoses, PPE, exhaust brushes, and duct wands
FMV: ~$370,000
CapEx plan:
Add 1 box truck for new crew: $52K
Replace 3 aging scrubber heads: $9K
Install technician tracking and route optimization tool: $8K
Sales Infrastructure and Growth Opportunities
Sales channels:
Referrals from restaurant managers, health inspectors, and fire marshals
Direct outbound to regional chains and franchisees
Government RFPs for school kitchens and city facilities
SEO/PPC for “hood cleaning + [city]” and “NFPA 96 compliant exhaust service”
Marketing budget: ~$30,000 annually
Scalable growth areas:
Acquire 2–3 one-truck operators in adjacent counties for route consolidation
Expand grease trap and jetting services for chain restaurants and commissaries
Offer bundled “fire safety packages” including inspections, reports, and hood repairs
Launch monthly filter delivery and exchange subscription program
Build bilingual sales and customer support function for franchise owners
Financial Summary
Revenue: $3.44M
COGS (labor, chemicals, equipment maintenance): $1.66M
Gross Profit: $1.78M
SG&A: $1.055M
Adjusted EBITDA: $725K (21.1%)
Service margins:
Hood system cleaning: 60–65%
Emergency degreasing: 70%+
Grease trap services: 55%
Filter subscriptions: 75%
Compliance and consulting: 85%
Clients are billed after service, with government and school clients paying net-30. Larger restaurant groups are often on recurring billing via ACH with digital invoice delivery.
Licensing, Safety, and Insurance
All technicians certified in NFPA 96 standards and confined space entry
Fully compliant with EPA disposal rules for grease and wastewater
OSHA logs maintained and updated quarterly
Fully insured: $2M GL, $1M auto, $1M workers comp, $1M umbrella
No past safety incidents, EPA fines, or fire-code violations. Technicians sign off on service checklists and upload before/after photos for liability protection.
Working Capital and Transition Budget
Payroll float: $85K–$100K
Box truck and equipment expansion: $61K
Seller consulting and licensing transition: $28K
Technician recruitment and training: $18K
CRM and route optimization integration: $10K
Ideal Buyer Profiles
SBA-qualified buyer with field service operations or compliance experience
Fire protection firm expanding into kitchen fire mitigation services
Facility maintenance operator seeking add-on with predictable recurring contracts
PE-backed route-based B2B consolidator acquiring code-driven service companies
Post-Close Execution Plan
Send out continuity of service notices with license and compliance confirmation
Hire 2 new technicians and form an additional crew with truck purchase
Migrate customer scheduling to new CRM and launch automated reminders
Evaluate 5 small competitors within 75 miles for route acquisition
Begin rollout of filter subscription offering to top 20% of client base
Conclusion
This commercial kitchen exhaust cleaning and grease abatement company operates in a defensible, regulated niche where fire-code mandates ensure recurring customer demand and pricing power. With a well-trained team, valuable equipment base, and expanding compliance needs across the foodservice industry, it offers a durable SBA 7(a) acquisition opportunity. The buyer gains not only a profitable service company, but a foundation for multi-state scale through geographic roll-ups, bundled services, and subscription-based fire compliance offerings.
Want to Acquire This Business?
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The public listings on our website are only deals currently not under contract with an active client. Many deals end up going unlisted and directly to a client whose parameters fit well, and those deals are exclusively shown to them until a point they do not want to continue with it.
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