Commercial Laundry Equipment Servicing Company
This article presents an acquisition strategy focused on a commercial laundry equipment servicing company that installs, repairs, and maintains washers and dryers in apartment complexes, student housing, military bases, correctional institutions, and commercial laundromats. The company also maintains exclusive service agreements with multiple multi-family property managers and owns a fleet of revenue-sharing coin/card-operated machines across 300+ buildings.
The business generates $4.62 million in annual revenue with $925,000 in adjusted EBITDA. Approximately 68% of the revenue is derived from exclusive service contracts with landlords and property managers that require ongoing maintenance, repair, and revenue-sharing management of in-place laundry equipment. The remaining 32% of revenue stems from equipment sales and installations for new construction and retrofits. The company is also a regional authorized service center for several national washer/dryer manufacturers.
With strong recurring revenue, long-standing institutional accounts, and favorable gross margins, the business is a compelling SBA 7(a) acquisition candidate. A buyer can expand the business through machine upgrades, IoT integrations, regional growth into adjacent zip codes, and the acquisition of legacy service providers lacking parts infrastructure or card-based technology.
Proposed SBA 7(a) Deal Structure
With recurring service contracts and capital asset value, this business fits cleanly within SBA financing parameters:
Purchase Price: $3.7 million (4.0x EBITDA)
SBA Loan: $2.775 million (75%)
Buyer Equity Injection: $370,000 (10%)
Seller Financing (Subordinated): $555,000 (15%) amortized over 6 years with a 12-month interest-only period
Protective clauses:
20% clawback on seller note if contract renewal rate falls below 85% in first 6 months
$45K seller bonus if buyer upgrades 500+ washers/dryers to card-payment enabled systems within year one
Seller remains in consulting and sales transition role for 9 months, including vendor and REIT introductions
Client Base and Revenue Composition
Client types:
Multi-family property managers (Class B/C): 34%
Student housing and dormitories: 22%
Correctional and government institutions: 15%
Laundromat operators and retail strip centers: 14%
Military and contractor housing: 9%
Mobile home parks and senior housing: 6%
Revenue sources:
Maintenance and servicing contracts (monthly billing): $2.15M
Coin/card-operated machine revenue (revenue share): $960K
Equipment installations and retrofits: $710K
Equipment parts and OEM sales: $420K
Emergency repairs and compliance upgrades: $380K
Service agreements typically span 2–5 years, automatically renewing unless terminated with 90+ days’ notice. Many include monthly inspections, guaranteed response windows, and machine replacement cycles. Coin/card revenue is split 60/40 (landlord/company) in most agreements.
No client exceeds 9% of revenue. Top 50 clients represent 64% of annual income.
Technician Infrastructure and Operations
Personnel:
6 certified appliance technicians with route territories
2 installation specialists (new builds and retrofits)
1 inside parts coordinator and warehouse manager
1 route auditor (coin collection & inspection)
1 general manager overseeing field and contracts
Technicians use a proprietary dispatch system with real-time status updates and inventory tracking. Jobs are scheduled in clusters to minimize travel and optimize part usage. Each tech handles ~60 machines per week.
Post-close hiring and workforce strategy:
Hire 1 junior tech and 1 installer for growth zones
Introduce incentive plan tied to machine uptime and repair callbacks
Launch apprentice training program for parts techs from local vocational schools
Fleet, Facility, and Capital Equipment
Facility:
9,000 sq ft service warehouse and parts distribution center
Parts inventory and logistics zone
Refurbishment and repair workstations
Coin counting and secure collection room
Administrative office for service coordination
Lease: $6,900/month with 4 years remaining + 5-year extension
Fleet and equipment:
8 branded service vans equipped with tools, GPS, and part scanners
Coin collection vehicle with vault protection
Washer/dryer inventory (~180 units) in rotating deployment
FMV: ~$520,000 (vehicles + parts inventory + loaner equipment)
CapEx needs:
Replace 2 older vans: $80K
Card-reader retrofit kits for 250 washers: $42K
Upgrade dispatch CRM for mobile-first interface: $9K
Sales Strategy and Growth Opportunities
Sales channels:
RFP submissions to REITs and property management firms
Manufacturer referrals for new installs and warranty work
Direct outreach to Class B/C property portfolios
Google Ads and SEO for “laundry machine repair + [city]”
Marketing budget: ~$36,000/year
Growth levers:
Acquire 2–3 small appliance repair firms without contract infrastructure
Launch self-branded laundry card system with remote reload functionality
Target growing student housing developments with bundled install/maintenance packages
Sell IoT-based telemetry add-ons for usage data and predictive repair alerts
Expand laundry room upgrades (paint, signage, access control) as premium add-on
Financial Overview
Revenue: $4.62M
COGS (labor, parts, machine depreciation): $2.12M
Gross Profit: $2.5M
SG&A: $1.575M
Adjusted EBITDA: $925K (20%)
Segment profitability:
Service contracts: 65–70%
Coin/card revenue: 55–60%
Installations and retrofits: 45%
Parts and OEM resale: 40–50%
Emergency and compliance repairs: 60%+
Contracts are billed monthly. Coin/card revenue is collected every 2–3 weeks and reconciled with route audits. Equipment installations follow a 50% upfront, 50% completion model.
Compliance, Insurance, and Risk Management
Fully licensed appliance repair and commercial electrical permit holder
OSHA-compliant safety policies; no reportable injuries in 3+ years
EPA-compliant waste handling and equipment disposal process
Insured: $2M GL, $1M auto, $1M workers comp, $1M umbrella
No current litigation, warranty disputes, or vendor conflicts. All machines are UL-certified and ADA-compliant.
Working Capital and Transition Budget
Payroll and inventory float: $95K–$110K
CRM and dispatch system upgrade: $9K
Van replacement and card-reader kits: $122K
Seller training and consulting retainer: $32K
Junior tech onboarding and tools: $16K
Ideal Buyer Profiles
SBA buyer with technical services, appliance, or route-based business background
PE-backed facilities services platform expanding into appliance and coin-op sectors
Real estate operator with vertical integration goals in amenity management
Tech-savvy buyer seeking predictable cash flow and IoT growth potential
Post-Close Execution Plan
Meet with top 40 clients to confirm service continuity and install schedule
Hire 1 junior tech and start retrofit campaign for top 10 clients
Launch self-branded reloadable laundry card system
Begin due diligence on 2 small repair companies with parts overlap
Build digital dashboard for clients to monitor repair tickets and machine usage
Conclusion
This commercial laundry service company operates at the intersection of predictable cash flow, essential services, and under-monetized real estate assets. With strong maintenance contract retention, coin/card system recurring revenue, and physical asset ownership, it offers both stability and scalable growth. The business is defensible, route-based, and strategically positioned for a buyer who understands how to optimize technician labor, expand multi-family services, and drive revenue through machine upgrades and property-level partnerships. SBA 7(a) financing makes it an ideal platform to acquire and scale.
