Commercial Kitchen Equipment Repair and Maintenance Company
This article outlines a strategic acquisition model for a commercial kitchen equipment repair and maintenance company focused on serving restaurants, schools, hotels, hospitals, and institutional cafeterias. The business specializes in repairing, installing, and maintaining equipment such as commercial ovens, refrigerators, steamers, fryers, dishwashers, and food prep systems. It also carries parts inventory for major OEMs and is authorized to perform warranty work for multiple manufacturers.
The company generates $5.12 million in annual revenue with $1.02 million in adjusted EBITDA. Approximately 72% of the revenue is recurring via scheduled quarterly or biannual preventive maintenance (PM) contracts. The remaining revenue stems from emergency repair calls, warranty work, and capital equipment installation. The business employs licensed technicians, including a team certified by equipment manufacturers, allowing it to charge premium rates and maintain brand-authorized repair status across a wide territory.
Given its recurring PM contracts, strong vendor relationships, and technical certifications, this business is an ideal SBA 7(a) acquisition target. A new owner can expand through technician recruitment, acquisition of small regional firms lacking OEM relationships, cross-selling refrigeration and HVAC services, and broadening its service area into adjacent metro regions.
Proposed SBA 7(a) Deal Structure
This deal can be structured as a traditional SBA-backed transaction due to the business’s contractual cash flow and service route efficiency:
Purchase Price: $4.08 million (4.0x EBITDA)
SBA Loan: $3.06 million (75%)
Buyer Equity Injection: $408,000 (10%)
Seller Financing (Subordinated): $612,000 (15%) amortized over 6 years with a 12-month interest-only period
Protective provisions:
20% clawback on seller note if PM contract revenue retention drops below 88% within 6 months
$50K seller bonus if buyer adds $400K in recurring PM revenue in the first 12 months
Seller remains available for training, manufacturer liaison, and client transition for 9 months post-close
Customer Segments and Revenue Breakdown
Client mix:
Restaurant chains and franchises: 33%
Hospitals and healthcare campuses: 19%
Hotels and hospitality groups: 16%
Public schools and universities: 14%
Corporate cafeterias and food prep facilities: 10%
Correctional and military kitchens: 8%
Revenue composition:
Preventive maintenance contracts: $3.69M
Emergency repair calls: $620K
Manufacturer-authorized warranty repairs: $490K
Equipment installation and calibration: $210K
Spare parts sales (OEM): $110K
Contracts are typically 1–3 years with scheduled service cycles and emergency coverage built into the agreement. Equipment PM includes testing, calibration, lubrication, part replacements, and temperature compliance reporting—often mandated by local health codes or corporate SOPs.
Top 60 clients comprise 67% of total revenue. No client exceeds 7.5%.
Technician Infrastructure and Certifications
Personnel:
9 field technicians with CFESA certifications
3 techs certified by OEMs (Rational, Vulcan, Hobart, Manitowoc)
2 dispatcher/schedulers for route coordination
1 inside parts sales representative
1 general manager (non-owner)
Each technician runs 4–6 service calls daily, depending on location and issue complexity. Technicians are equipped with diagnostic tablets, calibration tools, multimeters, thermal cameras, and stocked vans. PM and service tickets are uploaded to the CRM, which generates reports and replacement recommendations for client review.
Post-close labor strategy:
Recruit 2 junior techs from local trade schools and sponsor CFESA certifications
Implement route optimization tied to client response time SLAs
Establish apprentice-to-technician pipeline to fill projected demand growth
Facility, Fleet, and Equipment
Facility:
8,400 sq ft warehouse and office
Parts inventory and fulfillment center
Equipment testing bay and training center
Break room, lockers, and admin area
Lease: $6,700/month with 3 years left and 5-year extension option
Fleet:
10 service vans with OEM parts storage, thermal insulation, and diagnostics kits
FMV: ~$350,000
All vehicles GPS-tracked, insured, and serviced in-house
CapEx forecast:
Replace 2 aging vans within 12 months: $70K
Add OEM-specific calibration tools: $12K
Install inventory barcode system for parts: $8K
Sales Infrastructure and Growth Strategy
Sales channels:
OEM referrals for in-warranty repairs
Facility manager networks and food service consultants
RFP submissions for public kitchens and schools
SEO/Google Ads for “commercial kitchen repair + [region]”
Marketing budget: ~$45,000 annually
Growth levers:
Expand into refrigeration and HVAC services under existing client umbrella
Launch maintenance-as-a-subscription (MaaS) for newer equipment with lower failure rates
Acquire small shops with no OEM credentials or fragmented PM revenue
Create branded OEM repair portal for dispatch tracking and quote approvals
Launch bilingual technician training program to improve service in key urban areas
Financial Overview
Revenue: $5.12M
COGS (labor, parts, vehicles): $2.56M
Gross Profit: $2.56M
SG&A: $1.54M
Adjusted EBITDA: $1.02M (19.9%)
Margins by service line:
Preventive maintenance: 55–60%
Emergency service: 60–65%
OEM warranty repairs: 70% (with reimbursement averaging $85/hour)
Equipment installation: 50%
Spare parts resale: 75–85%
Billing terms vary: PM is typically billed monthly or quarterly under contract. Emergency calls and warranty work are billed by visit, with OEMs reimbursing based on fixed rate agreements. Installations are billed per milestone or at completion.
Compliance, Licensing, and Liability
Technicians CFESA certified with up-to-date EPA 608 refrigerant handling licenses
OEM-certified for major brands: documentation available
OSHA training and safety logs reviewed quarterly
Fully insured: $2M GL, $1M auto, $1M workers comp, $1M umbrella
No open complaints, equipment damage claims, or pending litigation. Technicians wear uniforms with ID badges and GPS check-in protocols. All health-code-required logs are digitized.
Working Capital and Transition Budget
Payroll float: $110K–$125K
Fleet replacement and tools: $82K
CRM integration with OEM tracking systems: $15K
Parts inventory tracking upgrade: $8K
Seller transition and OEM account management: $30K
Ideal Buyer Profiles
SBA-qualified buyers with field services, HVAC, or OEM parts background
PE-backed buyers consolidating foodservice repair and compliance businesses
Commercial HVAC/plumbing operators seeking kitchen overlap
Buyers seeking platform with strong warranty/PM revenue mix and technician licensing moat
Post-Close Execution Plan
Meet top 100 clients with seller and GM to confirm continuity
Launch CRM-integrated technician routing and PM schedule optimizer
Roll out new bilingual technician recruitment initiative
Identify 2 regional shops with <5 techs and low overhead for acquisition
Expand OEM relationships with 3 new manufacturer certification programs
Conclusion
This commercial kitchen equipment services firm delivers sticky, compliance-driven cash flow through a rare mix of preventive maintenance contracts and OEM authorized warranty work. Its workforce, infrastructure, and brand recognition provide clear competitive advantages that are difficult to replicate. The buyer inherits a scalable platform with significant expansion potential across services, service areas, and adjacent trades. As institutional clients increasingly demand fast, credentialed support for critical kitchen systems, this acquisition positions the buyer to dominate the repair and maintenance niche at the heart of food service infrastructure.
