Outstanding Green Organics/Wood Recycling Business – SOLD

Contact: Mike Greengard
Email: [email protected]
Your Reference ID: MG1011516


It has been a great run for the owner-seller of this very successful 20 year old green organics and wood recycling business.  However, he has decided to sell his company and relocate his family so his wife can accept a major corporate position. His upcoming out-of-state move is your opportunity.

With three, third-party leased locations across Michigan’s I-96 corridor, the business is paid to accept waste products which it turns into a range of salable products including nutrient rich soil products, landscape mulch, playground safety material, and animal bedding.  There is neither supplier nor customer concentration. It is definitely a unique business which has profit centers in receiving the raw materials and selling the finished goods.

Each location has a scale office as well as acreage for receiving, processing, curing and storing of materials. Its main facility includes a 5,000 square foot building where basic maintenance and repairs take place.

This high cash flowing, year-round business operates with just two part-timers in the offices and three full timers in the yards. Seasonal workers are added on an as needed basis. The company does not employ either mechanics or truck drivers, having found it more cost effective to use networks of both independent repair services and truckers.

In 2015, the business had $2.3 million of revenues, all of it generated at the wholesale level. With two new contracts in place, the company (which has multiple ongoing contracts with municipalities), is expecting 2016 revenues to surpass 2015’s record level.

The past four years the business has averaged $500,000 of annual SDE (seller’s discretionary income – the normalized cash flow available to pay an owner-operator and service debt), with a jaw-dropping $670,000 of 2015 SDE. The business is listed at $2,275,000, a very attractive 3.4x current SDE. Included in the purchase price is more than $1,000,000 (value in place) of machinery and equipment, and several hundred thousand dollars of inventory. The seller plans to retain cash and A/R while retiring all liabilities. Additionally, a meaningful seller note will be available to qualified buyers, and adequate transition training for the buyers will be provided.

To learn more about this outstanding niche business opportunity, please contact Mike Greengard (mgreengard@praxisbusinessbrokers.com).

Location(s): Metro Detroit, West Michigan

Asking Price: $2,275,000
Cash Flow: $670,000
Gross: $2,300,000
Inventory: $200,000

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