Getting the highest valuation price for your waste management company is not about “How much waste you can collect”… but the least amount of waste you can collect…
Let me explain.
When it comes to business, there are many factors that influence the value of your company.
And one of those crucial factors is “what are you specialized in”?
You see, you’d normally think that whoever collects more kinds of waste, will be the one who earns the most…
But that couldn’t be further from the truth.
And I’ll prove it to you now.
For the sake of it, let’s imagine you have a waste management business that collects all kinds of waste.
From soft plastics, to organic waste, to cardboard…You name it.
Since you can collect all kinds of waste, you can serve a wider range of customers, meaning there’s more capital, right?
But, here’s the truth…
Being able to serve a wider range of customers, doesn’t mean your work is valued higher.
You have to keep in mind that the less specific your business is in terms of what’s offering, the less amount of money people will be willing to pay.
This leads us to the next point of the article…
Which is talking about how specializing your waste management business can be a strong strategy.
Imagine for a moment you have a waste management company that focuses solely on collecting one kind of waste… let’s say you only collect glass. (just an example)
At first, you’d think it’s not as valuable because you are only collecting one kind of waste, right?
However, since your waste management company is now specifically a “glass waste management business”…
You become more exclusive because you’re offering something more specific to your clients.
And by taking this approach you’ll be able to position yourself as the “go to” waste management company for that kind of waste…
… therefore you’ll be able to target your clients better and take even bigger clients.
You see, this also helps positively when it’s time to get a higher sales price for your company.
I’m not saying it’s the “one change” that will give you extra millions of dollars…
But when it’s time to sell your business, everything adds up.
(Like the recurring model we talked about in one of our articles. You can check it out by clicking Here)
Ultimately you have the power over your waste management business, and you decide how it should be.
Our task here is to give as much valuable information to waste management business owners like you because we know how important it is to be able to get a high exit price.
Having a waste management business that’s specialized with one kind of waste is one of the most valuable parts of your company.
Even though it’s not the “one change” that will launch your business into the sky…
It will make your business more attractive to valuation experts and that helps to receive a higher exit price when you sell your company.
With that being said…
Hope you liked this article and you found it valuable.
Samuele Barrili is a Waste Management Expert and Business Strategist. Born in Cagliari, Italy, Samuele began his career as a salesman in 2010. After earning a degree in Toxicological Chemistry at the University of Cagliari (Sardinia) and many masters in Waste Treatment, he combined his knowledge to define his mission: save the planet helping 6,000 waste management companies to continue to thrive. After nine years in the field, working as a sales and marketing manager for international firms in waste management, Samuele created M4W Marketing For Waste, the first growth agency focused on helping waste management companies. Marketing4Waste is the first service dedicated to waste management companies.
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