Valuing a Septic Business

searcher profile

May 23, 2024

by a searcher from The University of Michigan - Stephen M. Ross School of Business in Mesa, AZ, USA

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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commentor profile
Reply by a professional
from University of Massachusetts Amherst in Boston, MA, USA
Hi Joshua, we help ETA entrepreneurs secure funding for their searches. We can potentially help you out with funding. Could you fill up this form: https://form.jotform.com/ridethewave/funding-ally, and please text###-###-#### or email redacted and I can see if we can help you out.
commentor profile
Reply by an investor
from Ivey Business School at Western University in Boca Raton, FL, USA
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.
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