Commercial Laundry Valuation
Commercial Laundry & Linen Rental Valuation Calculator & Exit Planning Built for Laundry Service Owners
We built one platform that tracks your commercial laundry company's value monthly, identifies exit gaps early, and ensures your personal finances align with your exit timeline.
1,000+ Businesses have joined YourExitValue.com
Most Commercial Laundry Owners Have No Idea What Their Business is Actually Worth
Current Commercial Laundry / Linen Rental Valuation Multiples (2026)
Commercial laundry valuations are strong due to recurring revenue and high retention. Here's the market:
Every business is different. That's why you need to track your value.
Included in Your Exit Value is a complete Exit Planning Assessment where you track your progress quarterly against your results from the previous quarter.
Know your number and watch it grow
Most business owners guess at their value. You'll know it with precision.
Our platform uses six proven valuation methodologies to give you a complete picture of what your business is worth today—and tracks how that number changes month over month. No more waiting for annual appraisals or paying $15K+ for outdated reports.
See your trends. Spot opportunities. Make informed decisions
What Actually Drives Commercial Laundry Value
Your service quality matters, but sophisticated buyers evaluate these factors that determine premium pricing:
Customer Retention
90%+ Annual Retention
Laundry customers should be extremely sticky—switching is disruptive. 90%+ customer retention indicates service quality and competitive pricing. Track retention carefully; declining retention signals problems that significantly impact value.
High churn = service concerns
Route Revenue
Growing Weekly Route Revenue
Weekly route revenue is the fundamental metric. Growing revenue demonstrates market demand and customer expansion. Track revenue per route and total route count. Route growth indicates successful business development.
Declining routes = market erosion
Route Density
Concentrated Geographic Routes
Dense routes with customers close together maximize delivery efficiency—more stops per driver, lower costs. Route density is a key profitability driver. Scattered routes across wide geography have worse economics.
Sparse routes = inefficient
Plant Efficiency
Modern Equipment, Efficient Operations
Your laundry plant—equipment age, capacity utilization, and operating efficiency—affects costs and capability. Modern, efficient operations demonstrate competitive positioning. Outdated equipment may require capital investment.
Dated plant = capex needed
Customer Mix
Healthcare, Hospitality, F&B
Customer diversification across healthcare, hospitality, food & beverage, and industrial provides stability. Understanding your customer mix helps assess market position. Different segments have different growth dynamics.
Single segment = concentrated risk
Contract Quality
Multi-Year, Enforceable Contracts
Customer contracts with reasonable terms, proper documentation, and enforceability protect revenue. Contract quality—term length, renewal provisions, assignment clauses—affects value. Strong contracts are valuable assets.
No contracts = uncertain revenue
How to Value a Commercial Laundry Business
The U.S. commercial laundry and linen rental industry includes thousands of companies providing linen, uniform, and laundry services to hospitals, hotels, restaurants, and other commercial clients. The industry generates approximately $15 billion in annual revenue.
EBITDA is the primary valuation method. Commercial laundry businesses typically sell for 4.0x to 7.0x EBITDA, reflecting the industry's strong recurring revenue characteristics. SDE multiples of 2.5x to 4.0x apply to smaller operations.
Revenue multiples generally range from 0.50x to 1.0x annual revenue. Companies with long-term service contracts and route density achieve the upper end.
The unique valuation factor for commercial laundry is the contract base and plant infrastructure. Multi-year service contracts with hotels, hospitals, and restaurants create predictable, recurring revenue with high renewal rates. Route density — serving many accounts in a concentrated geographic area — maximizes truck efficiency and profitability. Plant equipment (washers, dryers, ironers, folders) represents major capital investment, and equipment condition directly impacts the buyer's reinvestment timeline. Companies with healthcare linen certification (HLAC) access the most demanding and highest-paying client segment.
Commercial laundry has seen consolidation through companies like Cintas, UniFirst, and Alsco, while independent operators with strong local contract bases remain acquisition targets. Use our free calculator above to get your instant estimate, then track your value monthly with YourExitValue.
Frequently Asked Questions
What multiple do commercial laundry companies sell for?
Commercial laundry companies typically sell for 4.0x – 7.0x SDE or 6x – 12x EBITDA. Companies with high retention, dense routes, and efficient operations command premium multiples.
How does customer retention affect commercial laundry value?
Critically. Laundry customers should be very sticky. 90%+ retention indicates service quality. Lower retention signals problems that significantly impact value.
Who buys commercial laundry companies?
National linen companies (Cintas, Aramark, etc.), regional laundry operators, PE-backed textile services platforms, and healthcare laundry consolidators.
Does route density affect value?
Significantly. Dense routes maximize efficiency—more stops, lower costs. Route density is a key profitability driver that buyers evaluate carefully.
How important is plant efficiency?
Important. Modern, efficient operations support profitability. Outdated equipment may require capital investment that impacts valuation.
What's the fastest way to increase my commercial laundry value?
Three high-impact moves: 1) Improve route density through geographic focus, 2) Strengthen customer contracts with proper terms, 3) Maintain high customer retention through service quality.