West Michigan Commercial Recycling Business – SOLD

Contact: Tim Carter
Phone: 616-560-1080
Email: [email protected]
Your Reference ID: TC1063015

Description:

The owner of this small, successful West Michigan commercial recycling business has an opportunity to partner in a larger, unrelated business, but to pull of this career change, he must first sell his recycling business. The owner’s difficult decision could be your opportunity. 

Operating in a 17,500 square foot free standing building (owned by a third party and available for purchase in a separate transaction or leased under favorable terms), this single shift operation employs seven full-time, non-union workers. 

The business has recycling relationships with over 50 commercial customers under arrangements from being “on call” to regular pick-ups and brokerage. The business does not deal with residential customer recycling. The company recycles paper, corrugated cardboard, wood, plastic pallets, engineered plastic, and plastic film. The business comes with a full contingent of fixed assets including a straight truck, semi-trucks and more than 20 trailers, most of which are spotted at customers then switched out once they are filled up with recyclable material. Also included in the sale are balers, forklifts, pallet jacks, box tippers, conveyor, scale, and office equipment. The estimated value in place for the full contingent of fixed assets included in the sale is $250,000

For the twelve months ending February, 2016, the business generated $225,000 of SDE (seller’s discretionary earnings – the normalized cash flow available to pay an owner operator and service debt). Revenues were $700,000 for the same period with sales prospects for the next twelve months even brighter due to the recent landing of two, new meaningful accounts.

The business is being offered for $795,000 which includes the above mentioned fixed assets and approximately $10,000 of supplies and inventory. The offering price is a competitive 3.5x SDE. In addition to offering a six figure seller note to a qualified buyer, the seller will give the buyer a month of transition training as part of the purchase price. Additional training and/or consulting can be negotiated.

Location(s): West Michigan

Asking Price: $795,000
Cash Flow: $225,000
Gross: $700,00
Inventory: $10,000

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