Your Guide to Selling a Recycling Business

As a business owner, you’ve spent years building your recycling business to be the best it could be and now you’re ready for all that hard work to pay off. No matter why you are selling your recycling business—whether moving on to new opportunities or have plans to retire—the process can get complicated.

Nevertheless, there are several factors that ensure the success of a profitable recycling business sale.

How to Sell a Recycling Business

ISISWorld reports that the entire recycling industry will experience a revenue increase to $10 billion in 2023 thanks to the rise of online shopping and the cost of paper. As more and more waste is produced by an ever-growing population, policies that encourage recycling will need to expand.

To successfully sell your recycling business for the best price possible, utilize the steps below.

1. Develop an Exit Strategy

When it comes to selling a recycling business, first you must develop an exit strategy that details how you, as the business owner, will exit the business.

Think about the following questions while you are planning your exit strategy, as potential buyers will want assurance that the recycling business will continue to prosper without you.

• When do you plan to exit the business? Immediately or after a predetermined time?
• Are your retirement plans—financial or otherwise—dependent on the sale of your recycling business?
• Will current employees remain with the recycling business after the sale? Does paperwork need to be drawn up to ensure job security?
• How do you image the transfer of ownership happening?

Ponder these questions when developing your exit strategy to avoid running into issues that will complicate, or worse, terminate the sale.

2. Organize Your Books

Next, you’ll want to organize all the paperwork from your recyclables business. Because of the large investment it takes to purchase a recycling business, potential buyers will want to see records of tax statements, inventory lists, client contracts, leases and more. Consider working with your lawyer and accountant to gather your legal documents.

3. Get a Formal Valuation

To find out how much your recycling company is actually worth, obtain a proper business valuation from a third-party source. Often, owners have a hard time separating the emotional attachment they feel for their business, which can cloud their judgment of what constitutes a fair asking price. Receiving a formal business valuation from an impartial entity is the best way to determine an equitable asking price.

There are many different approaches to determining how much a business is worth, which can confuse business owners. When it comes to getting a formal valuation, it is best to hire professionals.

4. Address Weaknesses & Improve

Prior to listing your recycling business for sale, make sure the business is in tip-top shape to attract interest. Identify areas of your business that could be improved and commit to an action plan. Address and improve on any weaknesses in your daily operations, marketing strategy, pricing or facility that may dampen the interest of a potential buyer.

Another way to improve your recycling business and solicit more interest is to grow and diversify your clientele base. Consider expanding your recycling services to businesses or corporations, providing a drop-off service, or offering a discounted rate on services to new clients. The more clients you have, the more revenue the business will seek, which will, in turn, attract more letters of interest.

5. List Your Recycling Business for Sale or Hire a Broker

Finally, you’ll want to list your recycling center for sale. Consider for-sale listing websites or paid online advertising if you plan to list the business for sale yourself. Alternatively, hire a business broker to simplify the process. Professional brokers have the industry know-how to successfully list and market the sale of your recycling service business. Brokers can take care of the sale while you maintain day-to-day operations and revenue.

If you’re ready to list your recycling business for sale, consider working with Sunbelt Business Brokers. Sunbelt has years of experience helping both buyers and sellers. You can depend on our staff to sell your recycling business for the best price. Working with a professional business broker ensures you have an expert guiding you through every step of the way. Contact a Sunbelt office near you!

Article updated on July 28, 2023.