Featured Business: Waste Management Company in New York

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Featured Business: Waste Management Company in New York

Welcome to this week’s highlight in SMB Power Play: This New York-based waste management company stands out in the environmental services sector, offering comprehensive waste removal solutions. Family-owned since 1958, this business has built a legacy of reliability and innovation in commercial and industrial waste management.

TL;DR

• Solid Financial Performance: Stable revenues of approximately $9 million annually over the past three years with net incomes ranging from $1.1 to $1.8 million.

• Diverse Service Offering: Includes NYC Commercial Waste Removal, Single-Stream Recycling, E-Organics, Roll-Off Containers, and Industrial Compactors.

• Operational Insights:

  • Team: 6 full-time management employees and 8 rotating truck operators.

  • Lease: Operates from a leased yard.

• Growth Prospects: Potential for increased profitability due to reduced operational costs.

• Ideal Buyer: Investors looking for a stable, profitable business with a significant market presence in NYC.

Financials at a Glance

• Revenue Stability: The company has maintained steady revenue of approximately $9 million annually, reflecting consistent demand and strong market positioning.

  Net Income Growth: Net incomes have been stable, ranging from $1.1 to $1.8 million, indicating efficient cost management and profitability.

These figures highlight the practice's financial health and operational success, indicating sustained growth and profitability.

Operational Insights

Service Offerings: This company provides a range of waste management solutions:

• NYC Commercial Waste Removal: Eco-friendly disposal solutions compliant with local regulations.

• Single-Stream Waste Removal: Simplifies recycling by consolidating various recyclables into a single container.

• E-Organics: Specialized disposal of organic waste, catering to businesses like restaurants and markets.

• Roll-Off Containers: Rentals for large-scale waste disposal needs, ideal for construction sites and major cleanouts.

• Compactors: Industrial compactors for efficient waste management, reducing collection frequency and costs.

Team Structure: The business employs 6 full-time management staff and operates 8 trucks with a rotation of employees, ensuring operational flexibility and coverage.

SWOT Analysis

Strengths:

• Awarded Zone: The NYC zone award guarantees a dedicated service area, enhancing market share and stability.

• Long-Term Contracts: These contracts provide predictable revenue streams and business stability.

• Negotiable Pricing: Flexibility in pricing within maximum caps can potentially secure higher rates.

Weaknesses:

• Price Caps: Revenue potential might be limited by set maximum prices, though negotiations offer some flexibility.

• Implementation Costs: Adhering to new environmental and safety requirements, such as using zero-emission vehicles, may require significant investment.

Opportunities:

• Increased Profitability: The awarded zone is smaller, leading to reduced operational costs and higher net profit margins.

Threats:

• Operational Complexities: Navigating the challenges of operating in NYC requires deep understanding and strategic management.

Future Prospects and Strategy

Growth Potential: With the awarded zone, the company is poised to increase profitability through reduced operational costs. Maintaining current revenue levels while lowering expenses will enhance net income.

Sale Considerations: The family seeks a sale price of $12 million, emphasizing a preference for a buyer who can manage or find the right personnel to operate the business efficiently. The owners are willing to facilitate a smooth transition.

Power Play:

This week’s Power Play features a waste management company with a solid foundation and promising future prospects. With consistent revenue, diversified services, and a newly awarded operational zone in NYC, the company offers a unique opportunity for investors. The business's stability, combined with potential for increased profitability, makes it an attractive investment in the waste management sector.

This is a good fit for you if…

1. Seeking Established Financial Stability: Ideal for investors looking for a business with steady revenues and strong net income.

2. Interested in Diverse Services: The company’s wide range of waste management solutions caters to various customer needs, ensuring a stable client base.

3. Looking for Operational Efficiency: With a flexible team structure and leased operational space, the business is primed for efficient management.

4. Aiming for Growth in NYC: The awarded zone offers significant market share and long-term revenue potential in a lucrative market.

5. Value Environmental Compliance: Aligns with investors prioritizing businesses committed to eco-friendly practices and regulatory compliance.

6. Desiring a Smooth Transition: The current owners’ willingness to assist in the transition ensures continuity and stability for the new owner.

This waste management company represents not just a business acquisition but an opportunity to lead a well-established, profitable enterprise with a solid market presence in New York City.

Interested in this deal?

Contact [email protected] to learn more!