What Is My Junk Yard or Salvage Yard Worth?

Salvage and junk yards are asset-rich businesses with multiple revenue streams — used parts sales, scrap metal, and often valuable industrial real estate. Environmental compliance is the critical factor that can make or break a deal.

Typical Valuation Ranges

Most salvage yards sell for 3x to 5x SDE, with real estate and inventory value often adding substantially to total deal value.

Factors that push toward the higher end: Clean environmental compliance, large parts inventory, strong online parts sales (eBay, Car-Part.com), owned real estate, scrap metal processing capabilities, established customer base with body shops and mechanics.

Factors that push toward the lower end: Environmental liabilities (soil contamination, fluid spills), no online sales presence, leased property, owner manages all operations, poor inventory management.

Key Value Drivers

Environmental compliance is the make-or-break factor. Clean Phase I environmental assessments, proper fluid handling, and stormwater compliance are non-negotiable for buyers and lenders. Known contamination can reduce value by hundreds of thousands of dollars.

Real estate — salvage yards sit on large industrial parcels that may have significant land value, especially in growing metro areas.

Online parts sales — yards with active eBay, Car-Part.com, and website sales access a national customer base at higher margins than walk-in traffic.

Scrap metal revenue — crushing and processing scrap creates a secondary revenue stream that fluctuates with commodity prices.

How to Increase Your Value

1. Address environmental compliance. Proactively remediate any issues and maintain meticulous documentation.
2. Build online sales. List inventory on Car-Part.com, eBay, and your own website.
3. Organize inventory. Cataloged, searchable inventory with photos sells faster and commands better prices.
4. Maintain equipment. Crushers, forklifts, and loading equipment in good condition support operations.
5. Hire staff. Parts pullers, salespeople, and yard managers who operate without you.

Browse the valuation multiples guide for industry data, or schedule a free call for a confidential valuation.