Northern California Kitchen Exhaust and Commercial Restaurant Hood Cleaning Company - Absentee Owned! - SC2223

Northern California Kitchen Exhaust and Commercial Restaurant Hood Cleaning Company - Absentee Owned! - SC2223

Financial Information
Asking Price: $399,000
Cash Flow: $90,000
Gross Revenue: $375,000
Down Payment: $299,250
Financing: Yes
 
This kitchen exhaust and commercial restaurant hood cleaning company is a Northern California Sub-Chapter S Corporation and has been in operation for the past 16 years under the ownership of its founder. This business boasts a large amount of repeat customers across Northern California, that are on cleaning rotations that vary from monthly to annually. The provide professional services to remove grease, oil, and other pollutants from commercial kitchen exhaust systems, ensuring fire safety, proper ventilation, and compliance with health codes. This involves cleaning hoods, ducts, fans, and filters, a process that is mandated by regulators and essential for maintaining safe and hygienic cooking environments. There are about 600 clients. Their coverage area is from Bay Area to South Lake Tahoe. They do possess a hood cleaning certification, which can be obtained by taking a one-week hands on training course and a test, but you could also just take the test online.
 
The kitchen exhaust cleaning services market is experiencing robust growth, driven by stringent health and safety regulations, increasing awareness of fire hazards associated with grease buildup, and a rising demand for commercial kitchen hygiene across diverse sectors. The market's expansion is fueled by the escalating adoption of commercial kitchens in the food service industry, including restaurants, hotels, and institutional catering. Furthermore, the increasing prevalence of kitchen exhaust systems in residential settings, particularly in upscale homes, is contributing to market growth. Segmentation reveals a significant portion of the market dedicated to commercial buildings, indicating a strong reliance on professional cleaning services to comply with regulatory requirements and maintain operational efficiency. Regular cleaning contracts represent a larger market share than one-time services, suggesting a growing preference for preventative maintenance and ongoing hygiene management. While precise market sizing is unavailable, considering a global CAGR and the presence of numerous regional and national players, it's reasonable to project a substantial market value.

Business Location
City: Northern California
State: California

Financing Comments
Seller financing may be available for a non-SBA Buyer, with amount and terms of financing dependent on the offered purchase price and quality of the Buyer.

Detailed information
Year Established: 2010
Home Based: No
Franchise: No
Relocatable: Yes
Lender Prequalified: No
SBA Prequalified: No
Full-Time Employees: 3
Part-Time Employees: N/A
Contractors: N/A
Owner Worked Hours/w: 3
Adjusted EBITDA: $78,113
Inventory Included: No
Inventory Value: N/A
Monthly Rent: N/A
Real Estate Available: No
Real Estate Included: No
Real Estate Value: N/A
FF&E Included?: Yes
FF&E Value: $50,000

Training/Support
The Seller is willing to provide training at 20 hours per week for 2 weeks for the new Owner. Additional training can be made available at a mutually agreed upon cost to the new Owner.

Market Outlook/Competition
Assuming a moderate CAGR of 5% and a 2025 market value of $2 Billion, a 2033 market size of roughly $2.65 Billion is a plausible estimation. This growth, however, is likely to be impacted by economic fluctuations and the potential for technological advancements that may alter cleaning methods and service demands. 

CA 02282967
NV B.1003039.LLC
NV BUSB.0007191

Reason for Sale
The Seller is selling to pursue other interests.