Regional Commercial Kitchen Equipment Repair and Maintenance Company

This article outlines a comprehensive acquisition framework for a commercial kitchen equipment repair and maintenance company that services restaurants, hotels, hospitals, corporate kitchens, school cafeterias, and government facilities. The company specializes in the repair, maintenance, and emergency servicing of ovens, fryers, steamers, dishwashers, walk-in coolers, and ice machines. Many clients are under contractually obligated health code compliance schedules, and most prioritize 24/7 availability, which this business delivers with its on-call technician model.

With $4.25 million in annual revenue and $955,000 in adjusted EBITDA, the company has built a defensible position in its multi-county service region. Over 75% of revenue is recurring, driven by service agreements with national restaurant chains, facilities management firms, and regional healthcare groups. The rest comes from emergency repairs and planned capital replacements. This business is asset-light, highly specialized, and carries operational advantages due to brand-agnostic certifications across dozens of major equipment manufacturers.

SBA 7(a) financing is ideal for acquiring this company due to its clean financials, reliable cash flow, high gross margins, and route-based dispatch model. Strategic growth opportunities include expanding the service radius, cross-selling equipment leasing, offering planned upgrade programs, and acquiring mom-and-pop technicians lacking infrastructure.

Proposed SBA 7(a) Deal Structure

With stable income, technician leverage, and capital-light infrastructure, the deal supports a textbook SBA 7(a) leveraged buyout:

• Purchase Price: $3.82 million (4.0x EBITDA)

• SBA Loan: $2.865 million (75%)

• Buyer Equity Injection: $382,000 (10%)

• Seller Financing (Subordinated): $573,000 (15%) amortized over 6 years with 12-month interest-only period

Incentive structure:

1. 20% clawback on seller note if more than 15% of recurring clients terminate within 6 months

2. Seller earns a $50K performance bonus if buyer retains 95% of clients by month 12

3. Seller remains as operations advisor and technician recruiter for 9 months post-close

Customer Segmentation and Revenue Streams

Customer mix:

• Restaurant chains and QSR groups: 38%

• Hotels, casinos, and resorts: 19%

• Hospitals and nursing facilities: 14%

• University and K–12 cafeterias: 11%

• Corporate kitchens and employee dining halls: 9%

• Municipal and correctional kitchens: 6%

• Other (catering companies, pop-up kitchens): 3%

Revenue categories:

• Recurring maintenance contracts: $3.2M

• Emergency repairs (after-hours, urgent): $520K

• Planned replacements and install jobs: $380K

• Equipment inspections and health code compliance logs: $150K

Maintenance contracts typically span 12–36 months with automatic renewal and monthly or quarterly service dates. Emergency services are billed hourly with premium multipliers. All contract clients receive guaranteed response windows and monthly system diagnostics.

No client accounts for more than 6% of revenue. The top 40 clients represent 72% of the business.

Technician Workforce and Dispatch Model

Labor structure:

• 6 field technicians (EPA-certified and factory-trained)

• 1 lead tech with advanced steam equipment and refrigeration specialization

• 2 dispatcher/schedulers

• 1 general manager (non-owner)

• 1 compliance/admin coordinator

Technicians operate out of branded service vans fully stocked with common parts and diagnostic tools. Daily routes are optimized using GPS dispatch software with predictive maintenance scheduling.

Post-close retention and expansion plan:

1. Introduce a technician bonus program tied to first-time-fix rates and contract renewals

2. Expand apprentice program through partnerships with trade schools

3. Launch part-time on-call tier to extend overnight coverage without full-time labor cost

Fleet, Tools, and Facilities

Fleet:

• 7 service vans (2016–2023 models), fully owned

• FMV: ~$285,000

• Each vehicle includes:

  • 110v inverter, compact tool rack, branded exterior wrap

  • iPad-based invoicing, route tracking, and compliance forms

Facilities:

• 4,800 sq ft operations center

  • Parts warehouse and technician inventory station

  • Break room and training bay with equipment simulators

  • Admin offices and call dispatch center

Facility lease: $4,200/month NNN, 2 years remaining, renewable for 5 years

CapEx needs:

• Replace 2 older vans over 18 months: $70K

• Install new racking and barcoding for parts inventory: $8K

• Build out simulator station for fryer and steam table diagnostics: $14K

Sales, Referrals, and Marketing Engine

Current client acquisition:

• Referrals from kitchen designers, restaurant consultants, and foodservice equipment distributors

• Google Ads and SEO optimized for “[city] commercial kitchen repair”

• Memberships in foodservice equipment service networks (CFESA, NAFEM)

• Bid portal participation for public foodservice contracts

Annual marketing budget: ~$45,000

Growth tactics:

1. Add full-time relationship manager to convert one-off repairs to contracts

2. Partner with equipment leasing vendors to bundle service contracts

3. Acquire solo repair techs with >$300K annual revenue for route consolidation

4. Offer recurring inspections as required under new health code regulations

5. Expand marketing toward food production facilities and ghost kitchens

Financial Summary

• Revenue: $4.25M

• COGS (labor, parts, vehicles): $2.1M

• Gross Profit: $2.15M

• SG&A: $1.195M

• Adjusted EBITDA: $955K (22.5%)

Margins:

• Contract maintenance: 55–60%

• Emergency work: 70%+

• Planned installs: 45–50%

• Health code inspections: 75%

Billing is either monthly (contracted) or per service ticket (emergency/installs). AR aging is minimal. Most clients pay within 15–30 days, and a small portion are on prepayment retainers.

Compliance and Licensing

• EPA 608-certified technicians for refrigerant handling

• CFESA-trained on 20+ equipment brands (Vulcan, Hobart, TurboChef, etc.)

• OSHA 30 compliance for lead technicians

• City business license and state-level mechanical license in good standing

• Fully insured: $2M GL, $1M auto, $1M umbrella, $1M workers comp

No open OSHA or labor disputes. Technician safety training updated quarterly. Regular health inspection logs filed per contract with clients in sensitive food handling facilities.

Working Capital and Transition Budget

• Payroll float: $110K–$130K

• Van replacement CapEx: $70K

• Inventory barcoding and warehouse racking: $8K

• Seller transition and technical advisory: $35K

• Marketing blitz to convert non-contract clients: $22K

Ideal Buyer Profiles

• Commercial services operators with janitorial, HVAC, or plumbing experience

• PE-backed acquirers of facilities management platforms

• Former kitchen equipment distributors seeking vertical integration

• SBA buyers with mechanical experience or operational leadership backgrounds

Post-Close Execution Plan

1. Solidify technician retention via bonus pool and title upgrades

2. Conduct contract audit to identify upsell paths (e.g., planned replacements)

3. Recruit trade school apprentices for pipeline continuity

4. Bid for large health care and public school kitchen maintenance contracts

5. Launch smart maintenance reporting system for top 30 clients

Conclusion

This commercial kitchen equipment service company offers durable recurring revenue, minimal churn, and defensible technician infrastructure within a niche, time-sensitive vertical. It’s ideally positioned for SBA 7(a) financing, giving buyers access to a proven field operations model, strong cash flow, and contract lock-in across essential B2B facilities. By expanding routes, converting one-off jobs to contract business, and acquiring solo operators, this business can double in scale while maintaining attractive margins and a low CapEx profile.