What’s My Hood Cleaning Business Worth?

How Hood Cleaning Businesses Are Valued

Hood cleaning businesses are valued on Seller's Discretionary Earnings (SDE). Like grease trap cleaning, this is a compliance-driven service — fire codes require regular cleaning of commercial kitchen exhaust systems. This creates a naturally recurring revenue base. Buyers value the customer database, cleaning frequency schedules, and route density above all else.

SDE = Net Profit + Owner’s Salary + Owner Benefits + Discretionary Expenses

They then multiply your SDE by an industry-specific multiple derived from comparable transactions. For Hood Cleaning businesses, that multiple currently ranges from 2x to 3.2x.

Current Hood Cleaning Multiples

These ranges reflect recent transaction data for hood cleaning businesses. Companies with scheduled service agreements and fire marshal relationships consistently trade at the upper end.

Want to understand how these multiples work and what EBITDA vs. SDE means for your business? Read our full guide: How Service Businesses Are Valued.

What Drives Your Number Up (or Down)

Two Hood Cleaning businesses with the same revenue can be worth very different amounts. Here are the factors that separate high-multiple from low-multiple businesses:

Drives Multiple Up

• Compliance-driven recurring revenue — fire codes mandate cleaning on quarterly, semi-annual, or annual schedules
• Scheduled service agreements — written contracts with cleaning frequency and pricing locked in
• Route density — concentrated restaurant districts maximize crew efficiency
• Certification and documentation — IKECA certification and proper cleaning records for fire inspections
• Cross-sell to fire protection — adding fire suppression inspections increases per-client revenue

Drives Multiple Down

• Owner is the only cleaner — single-person operations have no transferable value beyond the customer list
• No written agreements — customers call when they need cleaning rather than on a set schedule
• Poor documentation — no cleaning certificates or inspection records for customers
• Single-market concentration — all revenue from one small geographic area
• Price competition — low barriers to entry lead to pricing pressure from new competitors

If you’re not sure where you stand on these factors, our Exit Readiness Assessment scores you across all of them in about 3 minutes.

Frequently Asked Questions

What is the average hood cleaning business worth?

Hood cleaning businesses typically sell for 2.0x to 3.2x their Seller's Discretionary Earnings (SDE). For a business with $160K in SDE, that translates to an estimated value of $320K to $512K. Businesses with scheduled service agreements and proper compliance documentation trade at the higher end.

What SDE multiples do hood cleaning businesses trade at?

Based on recent transaction data, hood cleaning businesses trade at SDE multiples of 2.0x to 3.2x. The compliance-driven nature of the work creates natural recurring revenue, which buyers value highly in this niche.

How can I increase the value of my hood cleaning business before selling?

Convert on-call customers to scheduled service agreements with written contracts, obtain IKECA certification, maintain proper cleaning documentation for each service visit, and build route density in your core market rather than spreading thin across a wide area.

Get Your Free Hood Cleaning Valuation Estimate

Our free valuation tool uses real Hood Cleaning SDE multiples and adjusts for your specific value drivers. It takes about 3 minutes.

Planning your exit? Read our 12-Month Exit Timeline for a step-by-step preparation guide.