How much does a Commercial Refrigeration Repair cost to buy?

A typical Commercial Refrigeration Repair sells for 2.4x to 3.7x seller's discretionary earnings. With estimated SDE of $124K, expect to pay roughly $298K to $460K before adjustments for assets, debt, growth, and local market quality.

How much does it cost to start a Commercial Refrigeration Repair?

Startup costs range from $30K to $180K depending on location, equipment, and scale.

Service

Commercial Refrigeration Repair

Q: What are the profit margins for a Commercial Refrigeration Repair?

The average profit margin for a Commercial Refrigeration Repair is around 23%. Major costs include certified technicians, refrigerant and parts inventory, trucks, insurance, dispatch software, fuel, and warranty callbacks. Margins rise when maintenance contracts and chain accounts reduce pure break-fix dependence.

When a walk-in cooler dies, every minute starts melting money

Bottom line

Worth studying, but do not buy without strong local proof.

Commercial refrigeration repair companies service walk-in coolers, freezers, ice machines, reach-in units, prep tables, and cold storage systems for restaurants, grocers, convenience stores, florists, and food distributors. The surprising angle is that customers are often buying disaster prevention, not routine maintenance: one failed compressor can wipe out thousands in inventory overnight.

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Acquisition score

Strong

Avg Revenue

$540K

Profit Margin

23%

Acquisition Multiple

2.4x - 3.7x

Startup Cost

$30K - $180K

How It Works

Technicians diagnose and repair refrigeration systems, replace compressors and controls, recharge refrigerant, and sell preventive maintenance contracts. Revenue comes from emergency service, scheduled maintenance, equipment installs, replacement parts, and multi-location service agreements for chains or facility managers.

Revenue Range

Low End

$180K

Typical

$540K

High End

$1.5M

BizBite underwriting snapshot

Pass for now

Commercial Refrigeration Repair has enough high-level data for a first look, but BizBite has not assigned a category-specific operating model yet. Treat the score as preliminary.

Avoid / 100

Data confidence

low

40/100

Financing fit

medium

Category-level fit before lender-specific diligence.

Confidence cap

Weak source data caps the final score.

Why it may work

No strong positives yet. More verified data needed.

Be careful

!Source link status has not been verified yet
!No last-checked date yet
!No SBA category enrichment yet
!No category operating model yet
!Low data confidence

Pros

+Emergency failures support premium pricing
+Recurring maintenance contracts smooth seasonality
+Food-service and retail clients have strong repeat need
+High switching costs once a client trusts your team

Cons

-Requires technical licensing and harder-to-hire talent
-After-hours calls are common
-Parts inventory and trucks can tie up capital

Best For

Skilled HVAC-R operators or buyers with lead tech talent who want urgent B2B service work with contract upside

Operating Costs

Major costs include certified technicians, refrigerant and parts inventory, trucks, insurance, dispatch software, fuel, and warranty callbacks. Margins rise when maintenance contracts and chain accounts reduce pure break-fix dependence.

SBA Financing Estimator

Adjust the deal — see if it cash flows after debt service

$-6357/mo

after debt service

Deal price — $1.6M

Range: $1.0M (2.4×) to $2.5M (3.7×+)

Down payment — 15% ($243K)

SBA minimum equity injection is 10% for change-of-ownership

Interest rate — 8.00%

Current prime-based SBA rates: 7.5–10.5%

Loan term — 10 years (120 mo)

Standard SBA 7(a): 10 years for business acquisition

Down payment

$243K

15% equity injection

Loan amount

$1.4M

85% SBA-financed

Monthly payment

$17K/mo

$628K total interest

Monthly profit

$10K/mo

at 23% margin

Monthly cash flow after debt service

$-6357/mo

Margin does not cover debt service at these terms. Lower the deal price, increase the down payment, or extend the loan term.

Estimates only. Excludes owner compensation, capex, working capital draws, and taxes. Margin assumes average occupancy and volume. Actual SBA terms vary by lender and borrower profile.