What should I check before buying a kitchen hood cleaning business?
Before buying a kitchen hood cleaning business, read the restaurant service contracts and their cleaning schedules, see how many clients were lost to closures, check the service reports and photos kept for each client, look at the overnight crew model and equipment, and ask how the company works with fire-suppression firms.
Hood and exhaust cleaning serves commercial kitchens, so the business rises and falls with restaurants. Contracts, schedules and paperwork tell most of the story. Because the work is often done overnight, you also depend on a crew that is hard to supervise. Review the records first, then meet the people who carry out the work, and see a few jobs for yourself.
Contracts and cleaning schedules
Ask for every client agreement, the cleaning schedule it sets and how long it runs. Check who can cancel and on what notice, and whether a contract can be assigned to a buyer or needs the client’s consent. Your lawyer should read the key ones. Ask how schedules are tracked so no client is missed, because a missed visit is the type of failure a customer remembers.
Churn and client mix
Restaurants open and close often, so ask how many clients the company lost in recent years and why. A list full of independent restaurants behaves differently from one with chains, hotels or institutions. Look at how concentrated the work is and how new clients are found, whether by referral, bidding or cold outreach.
Records, crews and equipment
Ask to see service reports and before-and-after photos for several clients, and how they are stored. Find out how the overnight crew is scheduled, trained and supervised, and who holds the keys and alarm codes. Inspect the pressure washers, vans and tools. Ask how the company deals with fire-suppression firms, who may refer work, and whether those ties will carry over.
Related reading
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Due diligence
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernmentEquipment valuation: How to do it
- 03Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
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