10/23/2023
When Investors look for companies to invest in, they typically find the following things attractive:
1. Does the company have contracts in place?
- What makes waste collection companies valuable is their contracts. Make sure you have long term, monthly recurring contracts with terms.
2. Does your contract have 36 month terms in place? A new buyer will value your waste business with a higher valuation if you have long term, 36 month contracts with customers that are difficult to break.
3. Lots of customers
Make sure your business isn't reliant on a handful of clients. The more diversified your customer list is, the more money you'll get for your company.
4. Leadership team
Ensure you have a strong general manager and a support staff that can run the business without you there. A lot of businesses make money, but having a sellable company, you need to replace yourself in the day-to day to get a higher valuation.
5. Marketing & sales process
Waste collection businesses are mostly based upon word of mouth. This is a great way to drive sales, however, for a new owner, they will value the business if you have an automated revenue system in place, without having to rely on key employees or owner-operator relationships.
6. Know thy numbers
Make sure you have a deal room set up with clean financials with forecasts. It will communicate to the buyer that you know your business and can have a conversation about the financials (good and bad).
7. Don't hide the warts!
Every business has issues. Don't feel embarrassed about things that have gone wrong. Turn this into an opportunity for a new owner with a better operating system to add value immediately after the sale.
