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This is a junk removal and waste hauling operation based in West Palm Beach, Florida, doing roughly $2.37M in revenue with $520K in cash flow, a strong 22% margin for the category. The differentiator is a pricing model built on actual measured weight rather than the eyeball visual estimates most junk haulers use. In a business that is otherwise a commodity, charging by measured weight removes the haggling and the guesswork, which the listing credits for both higher customer trust and better margins.
The revenue mix is tilting toward higher-ticket, recurring commercial relationships with property managers and contractors, which is exactly where you want a hauling business to lean. Recurring commercial accounts are stickier and more predictable than one-off residential cleanouts. The company runs larger trucks that move more material per trip and cut down on disposal site runs, improving route density and labor efficiency.
The asking price of $580K against $520K in cash flow is a 1.11x multiple, which is aggressively cheap on paper and the single most interesting fact in this listing. Either there is real hair on this deal (owner dependence, customer concentration, undisclosed capex, or aggressive add-backs) or the seller is highly motivated. Verifying the true, transferable cash flow is the entire game here.
Why we like it
- The unit economics are unusually strong for junk hauling. A $520K cash flow on $2.37M in revenue is a 22% margin, well above the volume-priced competitors the listing describes, and the weight-based pricing model is a plausible reason why. If that margin holds under diligence, this is a genuinely profitable operator rather than a low-margin truck-and-labor grind.
- Waste hauling is about as recession-resistant as service businesses get. Property managers, contractors, and commercial tenants generate junk regardless of the economic cycle, and the growing share of recurring commercial accounts adds revenue predictability. This is boring, essential, and repeat-driven, exactly the cash flow profile durable buyers want.
- The weight-based pricing is a real, if modest, structural edge. Removing the visual-estimate haggle builds trust with repeat commercial buyers who value predictable, defensible invoicing. It is not a moat, but it is a differentiated operating practice that competitors have not copied, and it supports pricing discipline.
- The 1.11x multiple is the headline. If the cash flow is clean and transferable, buying $520K of earnings for $580K is a sub-14-month payback, which leaves enormous room for error even if performance slips. That downside protection is why this deal deserves a hard look despite the thin disclosure.
How to improve it
- Nail down route density and truck utilization in the first 30 days. Larger trucks reduce disposal runs, but real gains come from packing more paying stops into each route. Map current routes, measure revenue per truck-hour, and tighten scheduling to lift throughput without adding headcount.
- Double down on the commercial recurring base. Property managers and contractors are the highest-value, stickiest customers, so put a simple account-management motion in place: quarterly check-ins, standing service agreements, and volume pricing tiers. Converting more one-off jobs into contracts is the fastest path to smoothing revenue.
- Systematize lead generation, which junk haulers almost always underinvest in. Google Local Service Ads, a clean reviews engine, and referral incentives for property managers can materially raise inbound volume in a dense South Florida market. The weight-based transparency angle is a marketing story most competitors cannot tell.
- Audit disposal costs and negotiate tipping fees. Landfill and transfer station charges are the single largest variable cost in this business, and even small per-ton reductions compound across thousands of loads. Consolidating volume or securing preferred disposal rates can add margin without touching pricing.
- Reduce owner dependence before or immediately after close. At 1.11x, the risk is that the cash flow is tied to the seller running crews and closing commercial accounts. Install a dispatcher or operations lead and document pricing, routing, and sales processes so the business runs without the founder.
- Expand geographically once the core market is optimized. West Palm Beach anchors a large, growing South Florida corridor of construction and property management activity. Adding trucks and pushing into adjacent counties is a straightforward capacity play with existing playbooks.
Diligence notes
- Interrogate the cash flow number relentlessly. A 1.11x multiple on $520K SDE is either a steal or a signal, so demand three years of tax returns, bank statements, and a full add-back schedule. Confirm whether the reported cash flow includes owner labor, deferred truck maintenance, or one-time items that will not transfer.
- Verify the age and condition of the truck fleet. Larger trucks are an asset, but hauling equipment depreciates hard and replacement is capital-intensive. Get maintenance records, mileage, remaining useful life, and a realistic annual capex estimate, because deferred fleet capex could explain the low multiple.
- Assess customer concentration in the commercial base. The growing share of recurring property manager and contractor accounts is a strength only if it is not dominated by one or two clients. Pull a customer-level revenue breakdown and confirm the top accounts are on contracts, not handshake arrangements.
- Confirm licensing, permits, and disposal compliance in Florida. Waste hauling is regulated, and any gaps in permits, disposal contracts, or environmental compliance are real liabilities. Verify all required licenses transfer cleanly and that there are no outstanding regulatory issues.
- Establish why the seller is exiting at this price. No reason for sale, no years-in-business, and no stated transition support are disclosed, which is a lot of missing context for a deal priced this cheaply. Push for the true motivation and the amount of hands-on transition support before assuming the numbers are real.
Source
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