Selling a recycling or waste business in BC

The problem

Plenty of good businesses don’t sell for what they’re worth, or don’t sell at all. Buyers walk away when the books aren’t clean, the business depends too much on the owner, or one customer is too big a share of sales.

And the real estate can kill a deal late: a landlord who won’t consent to an assignment, a lease with too little term left, or a property question nobody looked at early. In this industry, permits and the site are part of the value, so a zoning or environmental question can stall everything.

What I do about it

I start with a confidential look at the business and the real estate together, so the things that make buyers nervous get fixed before they ever see them. I know what active buyers are looking for, I help you get the business ready, and I handle the lease or property side, which is where a lot of sales get stuck.

Everything goes through Coldwell Banker Prestige Realty and is agreed in writing first.

Ready now or planning ahead, the first step is the same. See succession planning for what happens on the first call, realistic timing and what to gather.

What buyers in this space look for

• Recurring customers. Collection routes, service contracts and long-standing commercial accounts, like hotels, restaurants, offices and industrial sites. Revenue that comes back every month is worth more than one-off jobs.
• Permits and approvals in good standing. Operating permits, environmental approvals and any agreements with stewardship programs or municipalities. These are hard to get, so buyers value them.
• The site. Zoning that allows the use, room to grow, and a clean environmental history. Expect buyers to ask for environmental reports.
• Trucks, bins and equipment with a sensible replacement plan.
• A team that stays, including drivers and a supervisor who knows the routes.
• Owner-operated, steady profit. Size is a moving target, but many of the private equity and holding-company buyers I talk to look for businesses with about $1 million or more in yearly profit (EBITDA). Some look smaller, and individual buyers often do.

Why and when owners sell

Most owners I hear about are thinking about retirement, have no family member who wants to take over, or have grown to the point where the next step needs more capital than they want to put in. Others get an approach from a buyer and want to know what the business is really worth.

All good reasons. The best time to start is a year or two before you want to be done.

How a confidential sale works

1. A first conversation. Just us. What you have, what you want and when.
2. A quiet look at the business and the real estate. I can tell you what buyers are likely to like and where they’ll push.
3. Getting ready. Statements, the lease or property, a list of what’s included. Your accountant and lawyer come in early.
4. Approaching buyers carefully. A short, anonymous summary first. Details only after a confidentiality agreement, and only to buyers you’re comfortable with.
5. Offers and due diligence. Usually a letter of intent, then a closer look at the books, contracts, staff, equipment and the lease.
6. The lease or property. Landlord consent and a release, or the property terms if you own the building. This is where deals often stall, so I start on it early.
7. Closing and handover. Many owners stay on for a set period to help with the transition, if they want to.

Where the real estate fits

Your yard or depot is often as important as the business. If you lease it, the buyer needs enough term and a landlord who will consent. If you own it, you may sell it with the business or keep it and lease it to the buyer, which can give you rent for years.

Any work I do on a sale is through Coldwell Banker Prestige Realty and agreed in writing first. Where the sale is shares only, with no real estate, I’ll say so up front and work with your lawyer and accountant on those parts.

Where everybody wins

You want a fair price, care for your staff and customers, and a clean exit. A buyer wants a well-run business they can trust, with a lease or property that supports it. A landlord wants a strong new tenant.

When the business is ready and the real estate is sorted early, all three can say yes.

Questions people ask

Who buys recycling and waste businesses in BC?

Private equity groups, long-term holding companies and larger operators looking to add routes or locations. Many want to keep the team and the local name.

What makes a recycling business more valuable to a buyer?

Recurring contracts, permits in good standing, a suitable site with a clean environmental history, reliable equipment and a team that can run day to day without the owner.

Can I keep my property and lease it to the buyer?

Often, yes. Some owners sell the business and keep the land, then lease it to the buyer. It depends on the buyer and the numbers, so it’s worth discussing early.