MFS Trade School, Hood Cleaning Certification & Training Business

$2.7M

Revenue

$905K

SDE

7.7x

Multiple

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Full Editorial Writeup

MFS Trade School is an online and hybrid vocational training company founded in 2016 that certifies workers in commercial kitchen exhaust hood cleaning and related maintenance services. The core hook is regulatory: NFPA Code 96, insurance carriers, fire inspectors, and municipal compliance departments across the US and Canada mandate hood cleaning certification, which creates non-discretionary, recurring demand. Management positions the business as one of only three credible certification providers in the space, with a first-mover advantage cemented by eight-plus years of paid ads data and dominant online presence.

The model is asset-light and high-margin. Roughly 74 to 75 percent of courses are delivered online at up to 97 percent gross margins, driving 40 to 50 percent EBITDA margins on $2.7M of LTM revenue and $905k EBITDA. Beyond core certifications, the company monetizes an upsell ecosystem: additional certifications across pizza oven, conveyor oven, steam cleaning and oil filtration verticals, a proprietary chemical brand, dropshipped equipment packages, lead-generation services, and annual recertification exams. An optional Orlando hands-on training center provides a premium tier while most fulfillment stays virtual.

The business is run by a mostly remote team of 11 (3 full-time, 2 part-time, 6 contractors) with the owner spending only 5 to 15 hours per week on strategy. Revenue has grown from $1.70M in 2023 to $2.24M in 2024 to $2.7M LTM, with a record Q3 2025 of $720k driven by scaling paid ads and hiring a second salesperson. Note the seller terms are restrictive: they want $5M cash upfront plus a $2M seller note and explicitly do not want SBA buyers or offers under $7M.

Why we like it

Earnings quality is genuinely rare for a business this size, with up to 97 percent gross margins on core online courses and 40 to 50 percent EBITDA margins on $2.7M revenue producing $905k of EBITDA. The asset-light model means low fixed overhead and minimal capex, so a high share of EBITDA converts to owner cash. The upsell stack (chemicals, equipment dropship, recertification, lead gen) lifts average order value beyond the base certification.
The moat is regulatory, not just brand. NFPA 96 and insurance carriers require hood cleaning certification, which makes demand non-discretionary and recurring, and the business claims to be one of only three credible providers with eight-plus years of paid ads learnings that new entrants cannot cheaply replicate. Annual recertification exams create a repeat-revenue tail rather than one-and-done transactions.
Tailwinds line up in the buyer's favor: surging interest in the skilled trades and new entrants launching their own hood cleaning businesses feed a steady 200 inbound leads per month. Compliance-driven markets tend to hold up in downturns because the requirement to be certified does not disappear when restaurant budgets tighten. Spanish-language demand (over a third of students) is real and largely unserved today.
The operator angle is compelling because the current owners admit they are too skeptical of paid ads to scale despite documented 3x ROI on Google. A buyer who simply leans into a proven acquisition channel and adds funnels the sellers never had time to build can grow revenue without reinventing the model. The owner works only 5 to 15 hours per week, so there is real management capacity to install.

How to improve it

Scale the paid ad spend the current owners refuse to push despite 3x-plus ROI on Google. Set clear CAC and payback targets, then increase budget in controlled increments while watching lead-to-sale conversion, since the record $720k Q3 came directly from more spend plus one extra salesperson.
Launch the Spanish-language program immediately, because over one-third of students already speak Spanish and the courses are digital. This is a near-zero-marginal-cost expansion of the addressable market that can be live within the first 90 days using existing curriculum and translators.
Build the recurring recertification engine into a predictable subscription-like flow with automated renewal reminders and pre-paid multi-year options. Converting annual recertification from a passive event into a proactively managed retention program raises lifetime value and smooths revenue.
Pursue corporate and channel partnerships with fire suppression companies, insurance carriers, and franchised restaurant groups that need their contractors certified. Bulk enrollment agreements shift the business toward larger, stickier B2B accounts and reduce reliance on one-off individual buyers.
Expand and systematize the upsell ecosystem, especially the proprietary chemical brand and dropshipped equipment, which carry recurring reorder potential unlike a one-time course. Tighten the post-purchase sequence so every certified student is routed into chemical subscriptions and equipment bundles.
Explore licensing or franchising the curriculum and additional hands-on training centers in high-density restaurant markets. This monetizes the brand and proctoring system with limited capital while extending geographic reach beyond the single Orlando facility.
Reduce reliance on the departing owner's tribal knowledge by documenting the ad account structure, funnel logic, and sales scripts before close. Formalizing the playbook protects the acquisition channel that is the entire growth thesis.

Diligence notes

Scrutinize the revenue definition and consistency, because the listing cites $1.70M in 2023, $2.24M in 2024, and $2.7M LTM 2026 while a $720k Q3 2025 is called a record. Confirm the exact trailing-twelve-month period, whether LTM includes the record quarter, and whether growth is durable or a one-time ad-spend spike.
Validate the margin claims and true owner earnings, since 97 percent gross margins and 40 to 50 percent EBITDA margins are exceptional. Rebuild EBITDA from bank statements and the P&L, confirm all ad spend, contractor payments, chemical/equipment COGS, and merchant fees are captured, and identify any owner add-backs baked into the $905k figure.
Test the durability of the paid ad channel that the entire growth story depends on. Pull the actual Google and Meta ad account data to verify the claimed 3x ROI, CAC trends, and lead-to-close conversion, and assess how sensitive the business is to rising ad costs or algorithm changes.
Confirm the competitive and regulatory moat is as thin and defensible as claimed. Verify that only two other credible competitors exist, that NFPA 96 and insurance carriers genuinely require this certification (not merely recommend it), and that MFS certifications are actually accepted by inspectors and carriers rather than optional credentials.
Evaluate the deal structure carefully because the seller demands $5M cash upfront plus a $2M note and explicitly rejects SBA financing. At a 7.73x EBITDA multiple for a small owner-dependent online business, understand why SBA is off the table, whether that signals a financeability concern, and negotiate meaningful earnout or holdback tied to the retention of ad performance.
Assess key-person and team risk given only one full-time in-office employee and six contractors handling sales and fulfillment. Confirm the sales team and their conversion rates transfer post-close, and quantify how much of the recent growth depended on the specific second salesperson hired.

Source

Originally listed on BizBuySell. View original listing →