Valuation and Multiples for a Port-a-John business?

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August 20, 2025

by a searcher from Carnegie Mellon University - Tepper School of Business in Austin, TX, USA

Was wondering if anyone had experience selling portable toilet businesses (either as a standalone or part of a roll up). Specifically, where did you look for buyers, what was the valuation multiple used (revenue, profit, sde, other)? Also were there any significant factors that influenced valuation? Things like partnerships with tailgate lots, event spaces, other...
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Reply by a searcher
from Rice University in Houston, TX, USA
I've heard it's a crappy business...
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from Texas Tech University in Lubbock, TX, USA
My thoughts? Valuation and Multiples The most common valuation multiple for a portable toilet business is based on a multiple of Seller's Discretionary Earnings (SDE) or EBITDA. SDE is generally used for smaller businesses, while EBITDA is used for larger transactions and roll-ups. SDE Multiple: For small to medium-sized businesses (under $5 million in revenue), a common valuation range is 3x to 5x SDE. EBITDA Multiple: For larger businesses or those targeted for a roll-up, the multiple is typically based on EBITDA and can range from 4x to 8x EBITDA. This range can be wider depending on the specific factors of the business. Another metric sometimes used is a multiple of Revenue, but this is less common and often used as a sanity check. Multiples on revenue for this industry are generally very low, often between 0.5x to 1.5x revenue. Finding Buyers Buyers for a portable toilet business can be found in a few key areas: Strategic Buyers: These are typically larger portable toilet or waste management companies (like Waste Management or Republic Services) looking to expand their geographic footprint, increase their market share, or acquire a competitor's customer base. This is the most common type of buyer for a "roll-up" strategy. Financial Buyers: These are private equity firms or family offices that see an opportunity for growth and consolidation in a fragmented market. They often look for businesses with strong cash flow and the potential to improve efficiency. Independent Buyers: These are individuals or small groups looking to enter the industry or purchase a single business. They are often found through industry-specific business brokers or online platforms. Significant Factors Influencing Valuation Several key factors can significantly influence a business's valuation multiple: Customer Mix and Contract Quality: A business with a high percentage of long-term contracts (e.g., construction sites) is typically valued higher than one that relies heavily on volatile, one-off events. Secure, recurring revenue is highly desirable. Geographic Density: A dense customer base in a small geographic area is more valuable due to lower transportation costs and higher route efficiency. Fleet Condition: The age, condition, and maintenance of the portable toilet units and service trucks are crucial. A well-maintained, newer fleet commands a higher valuation because it reduces future capital expenditures for the new owner. Event and Special Venues: Exclusive partnerships with large event venues, parks, or fairgrounds can add significant value. These partnerships provide a steady stream of high-margin event revenue and can act as a barrier to entry for competitors. Diversification of Services: Businesses that also offer restroom trailers, hand washing stations, or septic services are often valued more highly because of their diversified revenue streams and higher average contract values. Operational Efficiency: A business with a strong, well-documented operational system (e.g., efficient routing software, maintenance schedules) is more attractive to a buyer because it makes the transition easier and provides confidence in the business's profitability.
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