Electronic Asset Recycling Company
SOLD - NEO Business Advisors represented a leading end-of-use technology solutions provider established 20+ years with expertise in secure data destruction, asset value recovery, certified recycling, secure logistics, and asset management software. The Company had developed strong, long-tenured relationships with a diverse customer base including Fortune 500 companies, major healthcare systems, leading manufacturers, and large insurance companies based on their reputation for data security, certified recycling standards, and outstanding customer service. The Company maintained a zero-landfill policy, with 100 percent of the assets they assumed being recycled or remarketed.
Asking Price: $975,000
Revenue: $1,568,712
SDE: $257,784
FF&E: $35,000 Included? Yes
Working Capital: Not included in asking price
Real Estate: Leased for $12,239/month
Building Size: 23,000 SF
Employees: 10
Established: 2002
Location: Ohio
Detailed Information
The Company was R2v3 Certified and maintained ISO 9001, ISO 14001 and ISO 45001 certification. Competition was fragmented with many companies not maintaining the required data security protocols or certified recycling standards. The Company had three primary revenue streams in 1) service and audit fees, 2) scrap and recycling sales, and 3) resale and remarketing of assets that have remaining useful life. The average sale was $10,000-$15,000 per truck load of scrap and $30,000-$40,000 per truck load of assets to a reseller or wholesaler. This was an excellent opportunity for an individual buyer looking to step into business ownership with a profitable business, excellent brand reputation, sustainability mission, defensible market position, and a stable foundation for growth. The business was also an excellent strategic acquisition for an established company in the same or adjacent verticals of recycling particularly those offering solutions for the handling of sensitive data, documents, technology, and electronic assets.
Financial Overview:
Revenue by Year:
2024 - $1,568,712
2023 - $1,992,159
2022 - $2,741,805
Seller's Discretionary Earnings (SDE) by Year:
2024 - $257,784 (16.43%)
2023 - $360,816 (18.11%)
2022 - $476,847 (17.39%)
Weighted Average SDE - $328,639
Furniture, Fixtures, and Equipment (FF&E): FF&E of $35,000 (depreciated book value) was included in the asking price including two branded box trucks providing secure logistics for pickup from customer sites, asset management software, secure storage areas including locking cabinets and video surveillance systems, specialized equipment for logical and physical data destruction, audit technician workstations, tooling for disassembly of a wide array of electronic assets, and support equipment along with office furniture, computers, software, and phone systems.
Working Capital: Working Capital was not included in the asking price. A normal level of Working Capital was estimated at $50,000-$100,000 with the final sale price to be increased for the actual amount of Working Capital that transferred at the time of closing.
Real Estate: Real Estate was leased by the Company from an unrelated third party in a Triple Net Lease. Rent is $12,239/month for 23,000 SF of fully air-conditioned manufacturing and office space with an additional 9,000 SF of common area that included internal loading docks, drive in truck bays, and interior storage of scrap metal hoppers. The current lease term expired 2/28/2027 with a 3-year renewal option.
Growth and Expansion: The owner had identified several opportunities for growth and expansion including but not limited to 1) networking as a primary function of a relationship driven sales strategy, 2) building out relationships with OEMs who are doing the new technology implementation, including Trade-In Programs 3) increasing the sales force and investing in a push to grow sales, and 4) implementing a Sales and Marketing CRM system.
Reason for Selling: The owner was seeking a sale for retirement.
Support & Training: The owner was willing to stay on for a reasonable time after a sale to ensure a smooth transition and was negotiable on the length of the transition at mutually agreeable terms and compensation.
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