Valuing a Septic Business

by a searcher from The University of Michigan - Stephen M. Ross School of Business

8 months ago

Hello friends,

How should go about putting a price on a relatively small septic business?

I have taken the first small steps to acquiring a septic business in the Northwest by contacting the owner and visiting the business, but so far, we have not talked about price.
My initial research suggests that a typical septic business will have price multiples of 1x revenue or 2-3x EBITDA. However, I haven't seen much information out there and no broker that I contacted has ever sold a septic business in the Northwest.

What are some good resources or strategies I should consider for determining a fair valuation of a septic business?

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6 comments

investor from Ivey Business School at Western University

I've seen a few that have generally been in the 3.5-4x EBITDA range with ~$1M of EBITDA. Please keep me in mind if you are looking for investors in the preferred equity.

8 months ago | like reply | 0 likes

admin from Massachusetts Institute of Technology - MIT Sloan School of Management

You should reach out to ^Searchfunder member‌ who have previously commented on Sceptic if they don't comment here. There are only about a dozen of you with knowledge of this space as far as I can tell.

8 months ago | like reply | 0 likes

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