Valuations
What Is My Waste Management Business Worth?
Waste management is one of the most attractive roll-up industries. The combination of essential service demand, recurring contracts, route density economics, and high barriers to entry makes waste hauling companies highly sought after by PE firms and regional operators.
Typical Valuation Ranges
Most waste management businesses sell for 3x to 5x SDE or 5x to 8x EBITDA for larger operations with municipal contracts.
Factors that push toward the higher end:
- Municipal or government contracts
- Dense commercial route networks
- Diversified services (collection, recycling, dumpster rental, roll-off)
- Modern, well-maintained truck fleet
- Revenue above $2M with growth
- High route density (minimal windshield time)
Factors that push toward the lower end:
- Residential-only without commercial accounts
- Owner drives trucks daily
- Aging fleet needing replacement
- No contracts (month-to-month customers)
- Scattered geography with low route density
- Environmental compliance issues
Why Waste Hauling Is Attractive
Essential service. Trash doesn't stop. Commercial and residential waste collection is non-discretionary, recession-proof demand.
Recurring contracts. Commercial waste contracts (1–3 year terms) create highly predictable revenue. Municipal contracts provide volume guarantees.
Route density. Every new customer added to an existing route is almost pure margin. Consolidators buy companies specifically for their route density.
Barriers to entry. Trucks, permits, disposal arrangements, and customer relationships take years to build.
How to Increase Your Value
- Secure contracts. Move customers from month-to-month to annual agreements with auto-renewal.
- Build route density. Focus growth in existing service areas to maximize trucks-per-stop economics.
- Maintain your fleet. Modern, CNG or diesel trucks in good condition reduce downtime and signal professional operations.
- Add services. Recycling, roll-off dumpsters, and specialty waste handling diversify revenue.
- Win municipal contracts. Government contracts provide volume, stability, and credibility.
Browse the valuation multiples guide for industry data, or schedule a free call for a confidential valuation.
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