Listing ID: 83771
Roll Off, waste and recycling management company operating throughout Southern Minnesota. Owner is retiring after founding the business in 2002. Operations include weekly residential and commercial refuse pick up service, dumpster and roll off rentals, electronics and appliance recycling. Sales have steadily grown over the years with 2021 having the highest revenue since the business started. Owner recently hired a FT garbage truck driver to take over all of the seller’s driving duties. The FT driver and PT office manager willing to stay on with new owner. Value of vehicles and equipment are well over asking price – estimated at $330,000. There is an option to lease the real estate for 2 years with first option to buy otherwise new owner could move business to anywhere throughout region.
- Asking Price: $290,000
- Cash Flow: $130,022
- Gross Revenue: $349,461
- EBITDA: N/A
- FF&E: $330,000
- Inventory: N/A
- Inventory Included: Yes
- Established: 2002
- Property Owned or Leased:Own
- Property Included:N/A
- Building Square Footage:4,032
- Lot Size:N/A
- Total Number of Employees:3
- Furniture, Fixtures and Equipment:N/A
Business is operated on seller's personal property. Option to lease business side of property for 2 years with first option to buy. Buyer can also move business anywhere within service area (Faribault county).
Seller will provide as much training as needed
There are several other waste management companies in this service area but typically their service prices are higher than this company.
Business currently does no advertising which could increase sales. Just by adding a website and newspaper advertising could add new customers.
The venture was founded in 2002, making the business 20 years old.
The business has 3 employees and is located in a building with approx. square footage of 4,032 sq ft.
Why is the Current Owner Selling The Business?
There are all kinds of reasons why individuals decide to sell businesses. Nevertheless, the genuine reason vs the one they tell you may be 2 entirely different things. For instance, they might claim "I have way too many other commitments" or "I am retiring". For lots of sellers, these factors stand. However, for some, these may just be reasons to try to conceal the reality of transforming demographics, increased competition, recent decrease in incomes, or a range of various other factors. This is why it is very important that you not depend totally on a vendor's word, but instead, utilize the seller's response in conjunction with your general due diligence. This will paint a more reasonable image of the business's existing scenario.
Existing Debts and Future Obligations
If the existing business is in debt, which numerous businesses are, then you will need to consider this when valuating/preparing your offer. Many companies borrow money with the purpose of covering points such as stock, payroll, accounts payable, and so on. Keep in mind that sometimes this can mean that revenue margins are too tight. Numerous businesses come under a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may additionally be future commitments to think about. There may be an outstanding lease on equipment or the building where the business resides. The business may have existing agreements with vendors that must be fulfilled or might lead to charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the location attract brand-new clients? Many times, businesses have repeat clients, which form the core of their everyday revenues. Specific elements such as new competition sprouting up around the area, roadway building, and employee turn over can influence repeat customers and adversely affect future incomes. One essential point to consider is the location of the business. Is it in a very trafficked shopping mall, or is it hidden from the main road? Certainly, the more individuals that see the business regularly, the better the opportunity to build a returning client base. A last idea is the basic location demographics. Is the business situated in a largely populated city, or is it located on the outside border of town? Exactly how might the neighborhood average family income influence future earnings prospects?