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BIZBITE

Commercial Refrigeration Repair

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.

Acquisition score
Margin · multiple · SBA data
57Strong
Avg revenue
$540K/yr
$180K–$1.5M range
Profit margin
23%
~$124K SDE
Multiple
2.4–3.7×
of SDE
Est. buy price
$298K–$460K
startup: $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.

BizBite verdict

Watch / verify

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.

57Strong
low data confidence · 40/100medium financing fit

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

Deal Calculator

Priced off $124K SDE — can this deal service its own debt?

2.27×
DSCR · Lender-comfortable
Purchase multiple — 3.0× SDE ($375K)
Category range: 2.4×–3.7× SDE
Down payment — 10% ($38K)
SBA minimum equity injection is 10% for change-of-ownership
Interest rate — 10.50%
Typical SBA 7(a) range: 9.5–12% (prime-based)
Loan term — 10 years
Standard SBA 7(a): 10 years for business acquisition
Purchase price
$375K
3.0× of $124K SDE
Cash to close
$49K
$38K down + ~3% closing
Debt service
$5K/mo
$55K/yr on $338K loan
Cash-on-cash
143%
cash back in ~9 mo
Debt service coverage · what the lender sees
2.27×+$6K/mo after debt
Most SBA lenders want ≥1.25× coverage; 1.5×+ is a strong file.

SDE = revenue × margin estimate for this niche; it includes owner compensation, so budget your salary out of cash flow. Excludes working-capital injection, capex reserves, and taxes. Actual SBA terms vary by lender and borrower.

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.

Where to Buy

AHRI

Industry association covering commercial refrigeration equipment and contractor ecosystem dynamics

BizBuySell – HVAC and Mechanical Businesses

Marketplace category where refrigeration and HVAC service businesses regularly transact

Market Equipment

Example commercial refrigeration service operator showing the install-plus-repair model in practice

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