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What is the industry std to determine selling price for trash collection business? Is it based on sales?

I am looking to detemine the industry standard for selling a trash collection business. Is it normally a factor of gross sales (i.e. 1 times, 2 times)?

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Answers (1)
Julie A. Barnes, CPA
Small Business Exchange, Inc.
Travis County, TX

Hi Sam,

You may be able to find some comparables in this industry - depending upon the size of the business. However, I would caution you NOT to put much credence in formulae. Multiples of gross sales is a burr under my saddle - sales may be phenomenal but that doesn't necessarily guarantee profitability. If I were to use multiples of any kind - it would be net income or cash flow.

I cordially invite you to visit my blog: where I talk about the valuation of Small to Medium Sized Enterprises.

Thank You - Good Luck!
Julie A. Barnes, CPA
President, SBX, Inc. (just for fun)

Nov 3, 2009

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