Denver County, CO Waste Management and Recycling Businesses For Sale

Waste Management and RecyclingColoradoDenver

Select Categories Colorado
[REDUCED] Well-Established Electronics Recycling CompanyMotivated Seller!
$185,000Cash Flow: $75,457Seller Financing
[REDUCED] Well-Established Electronics Recycling CompanyMotivated Seller!

Denver, CO

Successful Consumer Electronics Recycling Business available. Imagine companies paying you to take their used electronic equipment off their hands and then being able to make an additional profit selling it for parts. That’s what this business is all about! Original owners are selling their business because they are looking to retire. The business has been in operation for the past 7 years and has a great model to build on. They have building managers all over the front range that are collecting older computer equipment as companies inevitably upgrade. They have monthly collections from these locations and bill the management company for every piece collected. They can then either dismantle or refurbish the electronics and sell them in multiple streams ranging from Ebay and Craigslist, to Bulk Wholesale Contracts, to Scrap for Metal, Copper and Gold, to Wiring and Beyond. The value of the FF&E and the Inventory is more than the asking price for the entire business. More information available with a completed NDA.

Denver-Patented/Niche/Absentee Roll off BinsNiche/Absentee/Patented Waste Disposal
$415,125Cash Flow: $182,221
Denver-Patented/Niche/Absentee Roll off BinsNiche/Absentee/Patented Waste Disposal

Denver, CO

Patented Roll Off Bins Niche-Home Office, High Margin Waste Disposal Bins Absentee, high margin, low labor intensive, "waste management" system. Roll-off job site container combined with portable toilets. Home Based US Patented Product Tangle asset with minimal labor Strong repeat/customer loyalty Easy business to understand and develop Portable toilets are fitted with on-board tarp system, hoist, pump and vacuum to service toilet. Very unique for the construction industry. No experience in the construction industry needed

Cash flows $1.3M on 3.53M, 2.1M in Assets, Portable Toilet Rental Biz.Massive 28 Yr. Recession Proof Portable Toilet Rental Biz. All Gov't Contracts.
$3,500,000Cash Flow: $1,350,000Seller Financing
Cash flows $1.3M on 3.53M, 2.1M in Assets, Portable Toilet Rental Biz.Massive 28 Yr. Recession Proof Portable Toilet Rental Biz. All Gov't Contracts.

Denver, CO

New Business for Sale in Denver - Massive Portable Toilet Rental Biz - all Gov't Contracts. Almost 100% of Sales are "Recurring". Over 95% of our sales are long-standing DOD Gov’t contracts that renew every 5 years: Denver, 28 Yr. Old “Recession Proof Portable Toilet Rental Biz. Sales Price: $2M Down, Gets $2.1M in Assets Debt Free. Seller Big Medical Problems Past 1-2 Yrs. Motivated. All Sales Recurring Gov't Contracts, 95% Renewal Rate. New listing as of August 31, 2019, in Denver- Over 95% of our sales are long-standing DOD Gov’t contracts that renew every 5 years: The buyer puts down $2M (and pays another $1.5M over next 4-5 years) and gets over $2.1M in assets completely debt free. Not bad for a business that cash flows 1.2M/yr. The sales includes absolutely everything needed to cash-flow over 2M/yr. for the next 4-5 years without buying any new equipment. Cash Flow – 2018 was Cash Flow was 1,254,866 on sales of 3,533,747 2017 Cash Flow was 1,413,914 on sales of 3,255,264 2016 Cash Flow was 964,971 on sales of 3,576,859 In the past we cash-flowed over $3M on over $6.5M in sales. A new owner can hustle and get it back to those numbers. Sales Price and Deal Structure: The sales price is 3,500,000 with $2,000,000 of the sales price paid at closing. The seller will carry up to $1,000,000 paid over 5 years from a qualified buyer. The seller is confident in the future prospects of the business since he is carrying 40% of the sales price. The buyer MUST HAVE no less than $500K of their OWN funds to put down on this deal for the SBA to do the deal. The sale includes at least $2.1M in equipment and inventory completely debt free. This includes 38 fully-functional trucks, plus 3000 toilets, 500 sinks, and 300 handicap toilets all worth over $2.1M. More specifically, 38 field trucks have an average current value of about $1.1M including retrofitted tanks and modules, 3,000 portable toilets worth $250 each for a total of $750,000, plus 500 portable sinks worth about $150 each totaling $75,000, plus 300 handicap toilets worth about $700 each totaling $210,000. This totals over $2.1M in equipment and inventory that the buyer will receive completely debt free of the closing. Reason for sale: Owner age 70 and very sick. Who We Are: We are the finest medium-sized portable toilet rental company servicing the Dept. of Defense, the United States. We have been in business for 28 years, and over the last 10 years specifically, we have been one of the leading suppliers of rental equipment for Porta-Potties, handicap toilets, and portable sinks for military installations throughout the U.S. We have grown steadily over the years, and in the last 3 years in particular we have solidly cash flowed between $1.25M - $1.4M on sales of over 3.5M. It’s simple, we drop off, service, and pick up toilets and other rental equipment better than anybody. The quality of our products and service, and the attention we pay to detail, we keep our units cleaner than anybody. The owner has seen competitors come in and underbid them and wind up either losing a fortune on the bid or performing a terrible service with terrible equipment. When the contract is up, the government always seems to come back to us and pay a premium for high-quality service. They want it done right. Over 95% of our sales are long-standing gov’t contracts that renew every 5 years: Historically, because of our incredible reputation and commitment to excellence service, the attrition rate (contracts NOT renewing when they’re up) is less than 5% over the last 28 years. There are no guarantees in this world… but 1 thing is certain and that is that our contracts renew every 5 years simply because we provide the best service, clean Porto-parties, and low pricing. Those 3 components have been the foundation of our steady contract renewal rate. As long as the new owner continues to maintain this formula, they are very likely to start early January 1st with at least $3M of sales marching in the door. But, once in awhile you do lose the contract because for whatever reason, so it’s always important to get other irons in the fire to make up for that loss. As you can see, we enjoy incredible steady margins since we own the equipment debt free. Our variable costs are very low, with just labor and fuel and we have designed the company with very low overhead. It must be made clear here that in the midst of the great recession, 2008 through 2011, our company was stronger than ever and we cash-flowed over 3M on sales of 6.5M. The owner involved in business development has not pushed as hard over the last 7-8 years and let the business fall to 3.5M in sales, but the cash flow is still strong as you can see. In fact, in the last 2 years the owner had significant health problems, and in particular in early 2019 his mental condition fell sharply. Further, recently the owner’s health problems have become dire and the company needs someone to step in and drive it forward by getting new government contracts and driving sales back to over 6M/yr. The company recently lost a defense contract in California and this reminded them how important it is to diversify their customer base and never kick back with their feet on the desk. The new owner should start to push into the civilian markets such as construction sites, special events and sporting areas, etc. As of recent, almost 90% of the sales are with US defense military operations; the break down is about 30% of their gross sales is with the Army, 40% is with the Marines, and approximately 20% with the Air Force. The last 10% is special events. The company also provides some rental equipment to the Forest Service, and in the past, they’ve had other contracts for many other government operations. Historically, we’ve had toilets and other related products in about 10 base installations throughout the U.S at any given time. A few examples, right now is that the company has rental products in Texas, Kansas, Colorado, Florida military bases. For instance, we have 600 toilets and other rental equipment stationed at West Point in New York, $320K YTD in sales. Another example of a long-term contract, the company had over 1000 rental units at a large marine training base which paid over 1.2M over the past 12 years. YTD in 2019 we have been paid $200K for units in Ft. Carson Base, $394K California Base, $103K USAFB, $140K at Wells Fargo, for some more examples. We have earned $2.2M YTD through end of August on these long-standing contracts. In this business you need to just a few critical things to serve the largest customer in the world - the U.S. federal government. Over the last 28 years the company has built everything needed to serve this customer as well as, or better than anyone. You need the reputation, the history and experience with these defense contractors to get through all the paperwork and red tape. You also need the right equipment, and lots of it, and they certainly have that, with over 3000 toilets and 25 fully-functional operating trucks well-positioned throughout the country. Lastly, the new owner needs to aggressively bid for as many government contracts as possible when they become available, we could have done better here. The seller is fully confident that the new owner can get the business back to 6M-7M/yr. and still keep it under the $7.5M ceiling for small business set-aside status. He said it can take 3-4 years, but it can absolutely be done. To summarize, the company has everything in place, including the history and reputation with the federal government to earn the rights to pursue, and win these DOD government contracts. These contracts typically span 3-5 years in length and can be anywhere between 200K/yr. to literally 1M+/yr. In fact, we have held contracts in excess of 7M spanning 5 years. You don’t win these contracts without a reputation for competence, professionalism, and excellent service. Although the government must put these contracts out to bid and thus, they are somewhat price sensitive, having the name, reputation, and history we have has often gone a long way to help us win the work and many times even if we came in high on the bid! Our great name and reputation are the single-biggest asset being sold in this transaction. In this arena the barriers to entry couldn’t be higher. Not only would a new entrant need at least $3.5M in new equipment to get started, it would take years to catch up to us and earn the rights to win this work. Simply put we have an excellent “rhythm “working with these defense contractors and our relationship is so strong that the work is often ours to lose. There has been many jobs over the years we choose to take a pass on because we simply wanted to remain a “small business” – see comments below on “small business set-aside program”. A new owner could grow the business and take on bigger contracts just by adding another 1,000-1,500 units. Equipment and vehicles included in the sale. The sale includes 38 fully functional trucks that cost approximately $75,000 apiece to outfit. One of our greatest advantages is that our equipment has always been paid off with no debt, so it’s just a cash cow with no expenses against it except weekly service. We have great employees who not only know their job, they can think on their feet and they know how to manage the equipment in the field and repair when necessary. Our equipment has a particularly long-lasting life because they are made of some of the strongest plastics imaginable. The average toilet can last 20-25 years and since they are properly maintained and serviced, they can last even longer. The new owner needs almost nothing to grow the company because many of our units are idle; maybe just another 300-400 more toilets to get the business back to 6M. The Owner is Committed to Sell the Real Estate for another $1,100,000: The operation sits on over 1.2 acres of very functional space, with 2 separate buildings. The building the company works out of is 6000 SF (2000 office and 4000 warehouse). The other building on the property is 3600 SF (1200 office and 2400 warehouse) and is typically rented to another company for steady income. The entire property is for sale for another $1,000,000. It is very very rare that we lose the contract to someone else, but it does happen. Not long ago we lost a California contract to a competitor who undercut us so low they will absolutely lose the contract in 2 years because they simply cannot perform the work (that we did for 20 years) without losing their ass. The Seller is willing to bet $100 this contract will NOT be renewed with this company and it is very likely to fall in our lap because we’ve held it for 20 years and we performed extraordinarily. The bottom line is it is very hard to lose a contract when you’re doing a great job and again, that’s why we keep 95% of our contracts renewing every five years which speaks volumes about our service and pricing. To replace this $600K/yr. California contract that we held for 20 years the seller has 4 bids out that will more than replace this lost revenue. More specifically the seller is 80% confident they will land a contract in Cripple Creek, Colorado for $1.2M/yr. for the next 5 years. Also, the seller is confident they will win a $700K/yr. contract for the next 5 years at Fort Stewart, Ga. We are also bidding a very similar project for the next5 years at Fort Lee Virginia, and another large contract at Ft. Irvin Army Base. In short, every few days new contracts throughout the country come online to bid and the new owner just needs to pursue them with the right pricing, since the quality of our service with keep the 95% renewal rate! Recession proof, as stated above our business is completely recession-proof because people always need to use our products. Fortunately, people will never stop going to the restroom. As stated, even during the great recession, our business did better than ever cash-flowing $3M on 6.5M in sales, we made a fortune during this time. We have 25 great employees, 5 in the office and 20 in the field. There’s an old saying in business, your company is only as good as its employees. We have the best employees in the industry. All of our field and office workers have been with us a great number of years and we have the lowest turnover imaginable. Let’s be honest, being in the field in this industry is not the most glamorous work, but we pay our people well and they love the job security. It took years to assemble this great group of employees who run almost autonomously and need very little oversight. Our office manager has done a great job of running things for 28 years and knows the entire operation. She will stay on for several years to ensure that the business ownership transfers smoothly and orderly without any disruption. In fact, she and the other 4-5 key employees are the face of the company. The seller is in no condition to train, but his 50% partner will be available to train, as well as the office personnel and the general manager, Dorothy. One person can buy this business and wear the hat of both owners comfortably. Bidding these federal contracts, and even the civilian market is an art and a science. Apart from the great reputation and history we have with these government contractors; it took us years to figure out how best to build the most professional bid presentation which will have the highest likelihood of securing the contract. In addition to this skill, being able to steer through the red tape can be very difficult to win this work, and it has become even more comprehensive in recent years. Most people would think that the cumbersome red tape would be a negative to owning this company. We don’t see it that way, it’s another barrier to entry that in fact protects our position because very few people know how to navigate through the process. Again, make no mistake, if you’re going to consistently make 30%-40% net income on gross sales, you’re going to attract competition. So, every time it gets more difficult, we welcome that. We Operate Under a Federal Small Business Set-Aside Status, and although this is something other companies can get, it helps us to win contracts some other companies will not qualify to compete for, thus giving us an edge. It took a while to gain the status of Small Business Set-Aside status, whereby contracts are geared toward small companies (with revenue under $7.5M/Yr.). Companies with this designation get some level of preferential bid treatment to help the ‘little man’. This really gives us a leg-up on the larger companies. It’s important to understand that there are quite literally 10’s of thousands of government installations with an estimated 4M-5M Porta-Potti units that need ongoing weekly service. We only have the smallest percentage, probably less than 1%. The industry is wide open for growth with our existing relationships and solid reputation. As stated above, it’s all about providing the best service to the customer than anybody, and that’s what we excel at. We are the “yes people”, we put the toilet exactly where the customer wants and meet the most unique demands. No Branding or Marketing Materials at all, No Website, No Domain! This is both scary and comical. I asked the owner to send me any logo or branding images for the company. The image below is what he sent me – and is all he has for a company logo. There is nothing more than a door sticker taped down on the front of a toilet as it appears. The point is simply that this is a business steadily cash flows over $1.2M/yr. and used to cash flow over 3M/yr. and they’ve never had a website, logo, letterhead, absolutely no form of modest, let alone professional branding which is insane in this day and age, again not even a website or a domain. At first blush this may seem like a big negative or a business you would run from. Not so fast; I would urge you to see this as an even greater opportunity. If we have been able to exist for 28 years serving the public and private sector and has grown this big without any sort of professionalism, can you imagine how the company would perform going forward with a more professional existence. A new owner can come in, bring the company into the 21st century and would likely, almost immediately, dramatically improve the company’s growth potential. Almost No Variable Costs for Units in Place. It is Economic to Ship Even Just 400-500 units to the East Coast from Colorado for Instance: It may not seem practical to ship that many toilets across the country when there are other suppliers much closer. Understand, these 3-5-year gov’t contracts have an approx. 80% gross profit because there are almost no variable costs other than weekly maintenance which is just small labor and some fuel. So, if the contract is for say $500,000 over 5 years, who cares about $8000 in transportation costs to get the units out there and back home, or ship to another location when you’re earning 80% gross profit on $500,000? In short, it makes complete sense to ship to anywhere in the country for even the smaller contracts. We used to have a large commercial civilian division servicing corporate events, parades, sporting arenas, concerts, large commercial and private construction projects, etc. (Large residential construction projects are great since each home in a development needs its own portable. Many projects have 500-600 homes in a phase, and this is great margin work since the toilets are a little harder to access, etc.) 12 years ago, we sold that division to United (for a great sales price), and honored a 5-year noncompete. We never got back into the civilian market, but in an effort to diversify income going forward that would be an excellent business decision for the new owner to now pursue. There Are No Negative Disclosable Items: The company is in excellent standing. There are “no ghosts in this closet”! As stated above, after completing over 10,000 jobs we have NOT had 1 complaint for unsatisfactory work that we did not immediately fix on our watch and our dime, we have never failed on a job. We have always had an excellent safety record with virtually no injuries for at least the past 7-10 years. In fact, we have a workmen’s comp modifier rate of “.81”, which means we enjoy a 20% discount on our insurance which a new owner will benefit from for many years to come. We take worker safety very seriously and the seller is 100% committed to sign for Reps and Warranties that provides for a solid protection of the buyer in these areas. Licenses and Permits: Initially, the new owner needs no specific licensing or permits in Colorado, the company has all licenses needed to operate going forward. However, within the first 1-2 years the new owner would need to transition the licenses to themselves, but the seller will keep his license active for the company until this transition is complete. Please email if you have any specific question(s), path forward, or have potential interest in a phone all or face-to-face meeting with the owner/seller. Sincerely, Paul Olsen Business Sales | Valuations | Mergers and Acquisitions We Sell Businesses Quickly and Quietly and for Top Dollar. Main: 303-382-1900 Cell: 303-522-2034 999 18th Street, Suite 3000, 30th Flr. Denver, CO 80202 www.companybroker.com


Become a BizBuySell Edge Member Today!