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BIZBITE

E-Waste Recycling

Companies pay you to take their old computers. Then you sell the metals.

Bottom line

Worth studying, but do not buy without strong local proof.

E-waste recycling companies collect discarded electronics — computers, phones, servers, printers — from businesses and municipalities, then process them for resale or responsible disposal. Revenue comes from two directions: (1) pickup/processing fees charged to corporate clients for compliant data destruction and disposal, and (2) commodity value recovered from precious metals (gold, silver, copper, palladium) inside circuit boards. The US generates 6.9 million tons of e-waste per year, and corporate clients increasingly need documented, liability-free disposal. Profit margins can reach 30-40% at scale; some specialty operators extracting gold from circuit boards report even higher. The real moat is becoming the default vendor for local governments, hospitals, and corporate campuses.

65
Acquisition score
Strong

Avg Revenue

$1.2M

Profit Margin

28%

Acquisition Multiple

2x - 3.5x

Startup Cost

$50K - $300K

How It Works

You contract with businesses, municipalities, and schools to collect their end-of-life electronics. Clients pay a per-pound or per-device fee for certified data destruction and disposal compliance. You then sort and process materials: functional devices get refurbished and resold (highest margin), partial-working units get parted out, and the rest get shredded to recover copper, aluminum, and precious metals from circuit boards. R2/RIOS certification unlocks corporate and government contracts.

Revenue Range

Low End
$400K
Typical
$1.2M
High End
$5.0M

BizBite underwriting snapshot

Pass for now

E-Waste Recycling has enough high-level data for a first look, but BizBite has not assigned a category-specific operating model yet. Treat the score as preliminary.

30
Avoid / 100
Data confidence
low
40/100
Financing fit
medium

Category-level fit before lender-specific diligence.

Confidence cap
58

Weak source data caps the final score.

Why it may work

  • No strong positives yet. More verified data needed.

Be careful

  • !Source link status has not been verified yet
  • !No last-checked date yet
  • !No SBA category enrichment yet
  • !No category operating model yet
  • !Low data confidence

Pros

  • +Double revenue stream: collection fees + commodity resale
  • +Corporations and governments pay a premium for liability-free certified disposal
  • +Growing market — e-waste volume increases every year as device cycles shorten
  • +Refurbished electronics margin can be 3-5x the commodity strip value

Cons

  • -Requires R2 or e-Stewards certification for major contracts (6-12 month process)
  • -Commodity prices (copper, gold) fluctuate and impact margins
  • -Hazardous materials (batteries, CRTs) require specialized handling

Best For

Operators comfortable with industrial logistics who want a business with a regulatory moat and growing tailwinds

Operating Costs

Major costs: warehouse/processing space ($3-10K/month), trucks ($40-80K each), shredding equipment ($50-200K), certifications ($5-15K), labor. Margins improve significantly as volume increases and refurb sales grow.

SBA Financing Estimator

Adjust the deal — see if it cash flows after debt service

$-2939/mo
after debt service
Deal price — $3.0M
Range: $1.8M (2×) to $5.4M (3.5×+)
Down payment — 15% ($450K)
SBA minimum equity injection is 10% for change-of-ownership
Interest rate — 8.00%
Current prime-based SBA rates: 7.5–10.5%
Loan term — 10 years (120 mo)
Standard SBA 7(a): 10 years for business acquisition
Down payment
$450K
15% equity injection
Loan amount
$2.5M
85% SBA-financed
Monthly payment
$31K/mo
$1.2M total interest
Monthly profit
$28K/mo
at 28% margin
Monthly cash flow after debt service
$-2939/mo
Margin does not cover debt service at these terms. Lower the deal price, increase the down payment, or extend the loan term.

Estimates only. Excludes owner compensation, capex, working capital draws, and taxes. Margin assumes average occupancy and volume. Actual SBA terms vary by lender and borrower profile.

Where to Buy

BizBuySell

Environmental and recycling businesses available for acquisition

R2 Certified Directory

Locate R2-certified e-waste facilities — acquisition targets with built-in compliance value

65/100Strong

Acquisition Score

Profit margin
19/30
Entry multiple
25/25
Market depth
8/20
Risk (charge-off)
8/15
Deal momentum
5/10

Scores margin (30), entry multiple (25), SBA market depth (20), category risk (15), and deal momentum (10). Higher = better acquisition candidate.

Quick Facts

Category
service
Difficulty
3/5
Buy price
$2.4M$4.2M

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