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Valuation Guide

How Much Is Your Grease Trap Business Worth?

A detailed breakdown of SDE multiples, compliance revenue premiums, and valuation drivers for commercial kitchen services.

Commercial kitchen compliance demand may be affected by regulations, customer contracts, pricing, and local conditions. Grease trap, hood exhaust, and UCO businesses require a business-specific review of operations, compliance, and normalized earnings.

How Buyers Review FOG Valuation

Buyers may consider SDE, EBITDA, asset value, contracts, compliance records, route economics, and transition needs. There is no universal FOG multiple or guaranteed offer without a review.

10 Factors That Affect Your FOG Business Valuation

1

Scheduled Service

Review the share of customers on recurring 30-, 60-, or 90-day schedules, along with retention, pricing, and completed-service records.

2

Route Density

Review stops per shift, drive time, fuel use, service frequency, and dispatch practices to understand route economics.

3

UCO Volume

Document used-cooking-oil collection volumes, processor contracts, pricing terms, contamination controls, and customer concentration.

4

Facility Ownership / Permitting

Review facility permits, capacity, compliance history, disposal alternatives, tipping fees, lease or ownership terms, and required capital work.

5

Service Bundling

Identify which customers use trap pumping, line jetting, hood cleaning, or UCO services and how contracts, scheduling, and margins differ by service.

6

Customer Concentration

Heavy reliance on a single restaurant franchise group or property management company creates risk. Diverse customer bases are rewarded.

7

Owner Involvement

If the owner still drives a vac truck or is the only person who can sell new accounts, the multiple will be discounted for key-man risk.

8

Digital Compliance Tracking

Companies utilizing modern software (ServiceTitan, ServiceTrade, etc.) to auto-report manifests to municipal health inspectors are viewed as premium platforms.

9

Equipment Fleet

The condition, age, and maintenance records of your vacuum and jetter trucks directly impact the cash required by the buyer post-close.

10

Revenue Trend

Consistent year-over-year revenue and margin growth proves the business model is scalable, pulling the multiple toward the top of the range.

Factors That Increase vs. Decrease Value

Factors a buyer may view favorablyFactors requiring further review
Documented recurring scheduled accounts Mostly reactive, break-fix service calls
Bundled services (Traps + Hoods + UCO) Single-service offering
Automated municipal compliance reporting Paper manifests and manual tracking
Management infrastructure in place Owner is the primary salesperson/operator

Request an Acquisition Review

Request an acquisition review to discuss the records and operating factors that may inform a non-binding indication. This is not an appraisal or guaranteed valuation.

Request an Acquisition Review

Valuation FAQs

How do buyers treat UCO commodity revenue?
Because yellow grease prices fluctuate, a buyer may review historical pricing, volumes, contracts, and current conditions. The method and period used are transaction specific.
Does night/weekend work hurt the valuation?
It doesn't hurt the valuation if you have a stable labor force willing to do it. However, if employee turnover is high because of night shifts (common in hood cleaning), the buyer will factor in higher recruiting and training costs, which can impact the offer structure.
What is the difference between SDE and EBITDA in this industry?
SDE can describe the total economic benefit to one owner-operator when adjustments are documented. EBITDA describes earnings before interest, taxes, depreciation, and amortization, and may require a market-based management adjustment. Revenue size alone does not determine the appropriate measure.