Selling a Waste Management Business

Most waste hauling businesses price off a multiple of cash flow, usually SDE for owner-operators and EBITDA for larger fleets. Multiples move with route density, disposal exposure, fleet and near-term capex needs, container verification, and how durable the customer base is. Municipal or franchise work can support value when it transfers cleanly and service metrics are strong, while heavy roll-off tied to construction can swing more with the cycle. For a quick range, use Rejigg’s free valuation calculator to see how buyers price common waste risks.

Front-load usually gets underwritten like recurring route revenue: stops, density, service exceptions, and your ability to reprice over time. Roll-off gets underwritten more like dispatch and logistics mixed with project work: turns per can, haul distance, ticket weights, and how consistently you collect demurrage, overweight, and contamination charges. Buyers also pressure-test container inventory because missing boxes reduce earning capacity right away. When you compare offers, ask what assumptions they used on turns, utilization, and ticket variance.

Yes, many independent waste deals can be SBA-financed when the books are clean, cash flow is provable, and operations transfer smoothly. Lenders still dig into truck titles and liens, insurance loss history, and whether disposal accounts and permits stay in place after closing. They may get more conservative when revenue is highly project-based (common in roll-off) or when a big municipal contract is nearing a rebid window. You can stress-test payments and down payment scenarios with Rejigg’s SBA loan calculator.

No. A broker can help, but many owners run a solid process themselves if they can present route economics, disposal exposure, fleet and container lists, and permits clearly. Brokers often charge 5–10% for packaging, outreach, NDAs, and process management. Rejigg is free for sellers and includes pre-vetted buyers, digital NDAs, a secure data room for financials and operating documents, and a dashboard to track outreach and offers.

Many waste deals take 3–9 months from go-to-market to close, and it depends on financing, municipal approvals, permit transfer steps, and how organized the seller is. The most common avoidable delays are missing fleet and container documentation, unclear disposal economics, and permits that require notice or reapplication. You can shorten timelines by building your diligence set in advance and keeping it in a secure data room. See the typical workflow in due diligence and closing.

Buyers usually ask for three years of tax returns and financials, AR/AP aging, customer and route lists by line of business, disposal invoices and rate sheets, fleet list with VINs and titles/liens, maintenance logs, container inventory by size and location, permits and renewals, insurance loss runs, and key contracts (municipal, HOA, commercial). Waste is a physical business, so proof that trucks and containers exist and are in service matters as much as the P&L. Rejigg’s data room is built to organize these items in one place.

A lot of waste deals are asset sales because buyers want the trucks, containers, contracts, and goodwill while limiting exposure to unknown liabilities and environmental history. Stock sales come up when permits, municipal agreements, or customer approvals are hard to assign, but buyers often ask for stronger reps, escrows, or insurance coverage. If you have a yard with any spill history or you handle regulated waste, structure can change the risk profile and the timeline. Use negotiate a deal to see common terms and tradeoffs.

Waste companies often have AR tied to commercial billing cycles, prepaid residential or HOA periods, and disposal invoices that show up after the loads run. Buyers commonly set a working-capital target, so they are not funding the same receivables and payables twice at closing. The right target depends on your billing cadence, payroll schedule, and how disposal invoices lag. Bring a “normal month” view of AR, AP, and any customer prepayments so the target reflects reality. Rejigg’s offer comparison view helps you weigh working capital terms next to price.

Some buyers pay a multiple of earnings and treat routine fleet replacement as part of ongoing operations. Others adjust the price for near-term capex, like a packer that needs replacement, or for missing or unverified container counts. Titles, lien status, and in-service condition matter more than book value. A fleet status sheet (daily, spare, parked), maintenance history, and a reconciled container inventory usually reduce last-minute price changes.

Common structures include SBA-backed purchases with a seller note and deals with a holdback or earnout tied to customer retention. All-cash at close happens, but it is less common unless the business is very clean and easily financeable. In waste, earnouts often hinge on route churn, municipal renewals, or retention of a defined customer list. The more you can prove route economics, disposal stability, and transferability, the less buyers lean on contingencies.

Buyers look past simple “top customer percent” and focus on route economics. A single property manager, GC, or industrial generator can control a cluster of stops that makes a route profitable, and losing that cluster can wreck stops per hour even if the revenue loss looks manageable. It helps to show how many addresses sit under the relationship, service and complaint history, and what the route looks like if those stops churn. Most of the time, buyers get comfortable when you can show a realistic downside case.

It depends on the contract language and the local approval process. Some municipal agreements require notice and consent, while others trigger a formal assignment process or a rebid. Buyers also look at service performance, including complaint history, missed pickup handling, and cart repair responsiveness, because local politics can influence renewal. If municipal work drives value, build a calendar of bid windows and compile service records so the buyer can underwrite transfer and renewal risk with facts.

Environmental exposure can change the deal structure, pricing, and timeline because cleanup costs can exceed years of cash flow. Buyers usually ask what has been stored onsite, whether there were spills, notices, or neighbor complaints, and whether any soil or groundwater testing has been done. Leased yards add another question: who is responsible under the lease terms. Many situations are manageable when they are disclosed early and supported with documentation. Gather permits, inspections, and historical correspondence before you go to market.

Many transitions run 30–120 days, and it depends on permits, municipal relationships, and how much of the customer base is relationship-driven. Buyers want to see dispatch, customer service, billing, and disposal relationships hold together while ownership changes. A practical transition plan spells out customer communications, an escalation tree for misses and overflows, and the Day 1 access list, including phone numbers, software logins, and gate codes. See transitioning after the sale.

Confidentiality matters because customers, drivers, and disposal partners can react quickly to rumors. Many sellers share information in stages: a teaser first, then customer and route detail only after an NDA and buyer vetting. Rejigg supports that workflow with pre-vetted buyers, digital NDAs, and permissioned data room access so you control who sees route lists, contracts, and other sensitive details. This also reduces the chance a buyer is only fishing for route intel.

The most common reasons terms change are unverified container counts, fleet condition and near-term capex, disposal assumptions that do not match current tip fees, and permit or municipal transfer timing. Buyers adjust when diligence proves the operation works differently than the LOI assumptions. You can reduce retrades by calling out these pressure points early with documents and numbers so the first offer is closer to the final deal. Rejigg’s deal tracking helps you compare term changes across buyers.

Seasonality depends on your mix. Roll-off tied to construction can swing with the weather and the build cycle, while municipal and residential routes are usually steadier but still affected by holidays and storms. Many owners market after a clean year-end close or after finishing major repairs that would otherwise become capex objections. The best time is when you can show stable service, current disposal economics, and organized documentation, because waste buyers price operational risk quickly.

Earnouts often show up when retention risk is real, such as handshake accounts, owner-held relationships, or municipal contracts close to rebid windows. If you consider one, push for clear, measurable triggers you can influence, like revenue retained from a defined customer list or route stop counts, plus rules for what happens if the buyer changes pricing or service. Earnouts tied to vague “performance” tend to create disputes. If an earnout is being used mainly because documentation is thin, tightening your records and re-marketing can sometimes improve terms. Use the negotiation guide to pressure-test structure.