Business Overview

RVA Business brokers is pleased to offer this End-of-Life (EOL) Asset Management company.

E-waste is a growing problem globally. Before you is an incredible opportunity to purchase a recession-proof and pandemic-proof, e-waste recycling company with multiple revenue streams and a 51% cash flow margin in 2021.

Company accepts any type of obsolete electronic devices free of charge from the public and commercial clients. It makes its money on the backend with several revenue streams: repairing and selling equipment, selling parts, and recycling the component metals and plastics to be sold as the foundation material for new electronics. The Company has added textbook and medical device recycling to its services.

There will always be electronic waste. Be on the forefront of the recycling industry with this highly profitable company.

This model can be replicated in multiple cities and states. Owner in 70’s desiring to retire.

Investment Highlights:

51% Cash Flow Margin in 2021
Grew 5% in 2020, during Covid
70 commercial clients
Dedicated staff of 7
No Debt
All assets, including ~$50,000 in inventory
Has donated $70,000 to local charities and arts groups since 2016
Tremendous Room for Growth
Hours: Mon.-Fri.: 9:00 a.m. – 2:00 p.m.

Financial

  • Asking Price: $1,200,000
  • Cash Flow: $360,000
  • Gross Revenue: $710,000
  • EBITDA: N/A
  • FF&E: $50,000
  • Inventory: $50,000
  • Inventory Included: Yes
  • Established: 2016

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:7,500
  • Lot Size:N/A
  • Total Number of Employees:7
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

7,500 sq ft. $1,380 / month lease Lease ends 2023

Is Support & Training Included:

Owner will to stay negotiated time necessary for transition

Purpose For Selling:

Owner in 70's and has several reasons to retire.

Pros and Cons:

Competition in area not and issue

Opportunities and Growth:

This can be expanded to any US City and/or State

Additional Info

The business was started in 2016, making the business 6 years old.
The transaction will include inventory valued at $50,000, which is included in the suggested price.

The business has 7 employees and is located in a building with approx. square footage of 7,500 sq ft.
The property is leased by the company for $1,380 per Month

Why is the Current Owner Selling The Business?

There are all types of reasons people choose to sell operating businesses. Nevertheless, the real reason vs the one they tell you might be 2 completely different things. For instance, they may state "I have a lot of other commitments" or "I am retiring". For numerous sellers, these reasons stand. However, for some, these may simply be reasons to try to conceal the reality of transforming demographics, increased competitors, recent reduction in earnings, or a range of other reasons. This is why it is very important that you not depend entirely on a vendor's word, yet instead, use the vendor's solution along with your general due diligence. This will repaint an extra sensible image of the business's present scenario.

Existing Debts and Future Obligations

If the current business is in debt, which lots of companies are, then you will have reason to consider this when valuating/preparing your offer. Numerous operating businesses borrow money so as to cover things such as supplies, payroll, accounts payable, and so on. Remember that occasionally this can suggest that profit margins are too thin. Numerous businesses fall under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may also be future commitments to think about. There may be an outstanding lease on tools or the building where the business resides. The business might have existing contracts with vendors that must be met or may result in penalties if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do companies in the location bring in new customers? Many times, companies have repeat consumers, which create the core of their daily profits. Certain factors such as new competition sprouting up around the area, road construction, and also personnel turnover can impact repeat consumers and adversely influence future earnings. One important thing to consider is the placement of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the highway? Clearly, the more individuals that see the business on a regular basis, the higher the opportunity to build a returning customer base. A final idea is the basic location demographics. Is the business located in a densely populated city, or is it located on the outskirts of town? How might the neighborhood average household earnings influence future revenue prospects?