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

Real Acquisitions in This Category

SBA 7(a) change-of-ownership loans · NAICS 811310 · Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance

Deals tracked

142

59 in last 24 mo

Median loan

$779K

$250K–$1.6M p25/p75

Implied deal size

$916K

median · ~85% LTV

Charge-off rate

—

not enough resolved loans

Deal Size Distribution

<$150K

$150K–500K

$500K–1M

$1M–2M

>$2M

Deal Flow Over Time

12-month momentum

-31.4%

deal volume vs prior 12 mo

Median loan Δ

+64.4%

24 recent · 35 prior

Financing Profile

Median rate

9.50%

22% fixed · last 24 mo

Median term

120 mo

standard 10-yr

Collateralized

of loans secured

Median jobs

supported per deal

Top lenders in this space

Live Oak Banking Company18

The Huntington National Bank15

First Internet Bank of Indiana5

First National Bank of Pennsylvania5

Beacon Bank and Trust5

Where deals happen

TX20

CA13

PA8

CO8

FL7

MI7

IL6

OH6

OR5

MO5

Recent Comparable Deals

Closed	State	Loan	Implied deal	Jobs	Franchise
Mar 2026	NY	$3.3M	$3.8M	15	—
Mar 2026	FL	$2.8M	$3.2M	25	—
Feb 2026	WA	$900K	$1.1M	12	—
Feb 2026	AZ	$1.4M	$1.7M	2	—
Feb 2026	TX	$1.2M	$1.4M	7	—
Feb 2026	TX	$250K	$294K	7	—
Jan 2026	TX	$200K	$235K	1	—
Jan 2026	NY	$500K	$588K	6	—
Jan 2026	TX	$1.3M	$1.5M	1	—
Jan 2026	MD	$965K	$1.1M	20	—

Volume rank #54/544Deal-size rank #229/544Momentum rank #275p90 loan: $2.4MData as of Mar 2026

Source: SBA 7(a) FOIA dataset, filtered to acquisitions (loans where business age is "Change of Ownership"). Implied deal size assumes an 85% loan-to-purchase ratio, a common SBA change-of-ownership structure. Charge-off rate shown only when 10+ loans have resolved (paid in full or charged off). Interest rates reflect last 24 months only. Actual deal values vary with equity injections, seller financing, and working capital terms.

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

$-979/mo

after debt service

Deal price — $1.0M

Range: $1.0M (2.4×) to $2.5M (3.7×+)

Down payment — 15% ($155K)

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

Interest rate — 9.50%

SBA median for this category: 9.5%

Loan term — 10 years (120 mo)

SBA median for this category: 120 months

Down payment

$155K

15% equity injection

Loan amount

$876K

85% SBA-financed

Monthly payment

$11K/mo

$484K total interest

Monthly profit

$10K/mo

at 23% margin

Monthly cash flow after debt service

$-979/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.