|Portable Toilet & Roll-Off Dumpster Business|
Listing DetailsStatus: Sold
Listing Broker: Michael Fekkes, CBI, CEPA
Listing Price: $1,050,000
Gross Revenue: $805,687
Cash Flow: $254,696
FF&E Included: Yes
Real Estate Included: No
Seller Financing: No
Financing/Terms:Cash. Owner Financing considered.
Absentee Owner: Yes
Reason for Sale:Family Interest. Focus on other business.
Training:Seller to provide full training and support to transition business.
OperationsForm of Ownership: Sole Proprietorship
Business Hours: Monday - Friday (Route Delivery begins at 7am)
Business Description:This company is the market leader for portable toilets and has a well diversified customer base. The dumpster business component was established 2 years ago and has been well received by the marketplace due to the complimentary nature of the service offering that provides efficiencies and economies of scale to both the customer and business owner. There are several long term customer contracts in place providing a steady and predictable stream of earnings. Some units have been in place for 10 years or more. The contract portion of this business was acquired through a competitor buy-out. Customer base spans multiple industries including small/large business, local government, special events, and construction.
Historical Summary:Consistent track record of profitability for the portable toilet business that was established in 2000. Complimentary dumpster business component was added in 2006 to fulfill the needs of the well established customer base. The addition of the dumpster business allows multiple streams of revenue to be captured from each customer. The pull-back in the construction industry with the accompanying reduction in revenue was offset by lower operating costs. Labor costs have been cut by 45% with the reduction in overtime and fuel cost is less than half of 2008. In addition, insurance was competitively bid in 2009 and was reduced by $12,000.
Owner Qualifications:Technical expertise or industry experience is not a perquisite for successful operation of this business. Becoming a student of the local market and the intricacies of the portable toilet and dumpster business is a skill that can be learned in short order. Current owner will provide complete training for new owner in addition to customer and employee retention. The new owner will require certification from the State of NC (simple process) as well as continuing education class of 8 hours per year attended by the owner or manager.
Competition:Company is the market leader in portable toilets with the next competitor being less than half the size in terms of customers and assets. In the area of dumpsters, there is competition from two national companies and two private haulers. None of these competitors offer portable toilet rentals which will continue to be the competitive advantage. Providing just 10% of the portable toilet customers with dumpsters is more than enough to produce good numbers. An increase above 10% could increase bottom line significantly.
Potential Growth:There are multiple areas to increase top and bottom line performance:
Business Administration functions can be run out of a home office. This is an effective and cost efficient means as no retail interaction is required. New owner would need to acquire 1-2 acres of fenced land for the storage of portable toilets, dumpsters, and vehicles. Current owner is willing to lease current property on a short term basis as a transition to new ownership. There are a variety of ideal and inexpensive locations available and logistics assistance will be provided to the new owner to secure the property.
Last Updated: Feb 25, 2015 / 10:18 AM
Financial Information Current as of: Jul 23, 2013 / 2:17 PM