Buying or Selling a Dumpster Rental Business in 2025

Full Transcript: Interview with Damon from FMC Advisors

Matt: All right, here we go. Hey Damon, thanks so much for joining this episode of Roll-Off Rundowns. I think where we’ll start is—can you just give us a little bit of background? You’ve got a lot of experience, and I want the listeners to understand where you’re coming from.

Damon: Absolutely. Thank you, Matt. It’s good to get back to my roots. I started selling roll-off containers way back in the early 2000s with Waste Management in West Michigan. I started out as what they called a temporary container rep—we were selling containers to construction sites, special events. It wasn’t the most glamorous title. “Temporary” didn’t mean my job was temporary—it referred to the type of containers. I really enjoyed that.

I spent 10 years at Waste Management doing sales and then managing those reps in both Michigan and Florida. Then I ran a roll-off division at United Site Services. So roll-off is near and dear to my heart. I enjoy speaking about it, so thank you.

Matt: That’s awesome. Let’s jump into buying questions. We’ll save the selling questions for later in the episode. So if I’m a dumpster business—either existing and looking to expand, or someone trying to buy one to get started—what should I look for in a business’s history and finances before buying?

Damon: Perfect question. Let’s back up and outline the typical buying process:

1. A buyer and seller express interest.
2. Initial data is exchanged.
3. A letter of intent (LOI) may be drafted with terms and pricing.
4. Due diligence starts—digging into the business.
5. Negotiate the purchase agreement.
6. Close the deal.
7. Begin integration.

So when you’re evaluating a business, start with what you can see: drive around and look at the equipment. Mystery shop the business—call in, see how they answer the phone, how they quote.

Then dig deeper: request at least three years of financials, inspect the equipment in person.

Matt: How do you know if a business is truly making money? Any red flags or hidden costs?

Damon: Review three years of P&Ls (profit & loss statements). If you’re in the business already, compare line items like insurance or maintenance to your own operation. Inconsistencies are red flags.

Look for add-backs: personal expenses the owner ran through the business, like vehicles or phones. Look into cash collection—especially for smaller operators. If cash isn’t on the books, it affects valuation.

In more formal diligence, you might ask for bank statements, though usually not until after the LOI. If you’re a first-time buyer, be cautious about dragging the process out—seller fatigue is real.

Matt: What should I ask about the business’s customers?

Damon: Start with an NDA. Then ask about the top 10 customers—how much revenue do they account for? Any large accounts gained or lost in the last 12 months?

We never share customer names upfront, but revenue concentration matters. One big customer leaving post-sale could tank your revenue.

Matt: What about evaluating the equipment?

Damon: Especially with roll-off, capital costs are high. Review the equipment list—year, mileage, hours. Look at the last time they bought containers. Review maintenance records and the repair & maintenance line on the P&L. If spending suddenly dropped the year before selling, be wary.

Matt: What about researching the competitive landscape?

Damon: You want to know where this business falls in the market. Are they the cheapest? Best service? Newest trucks?

Mystery shop them. How quickly do they answer? Are they professional? That tells you a lot.

You can also ask to speak with a couple current customers once the deal is further along.

Matt: Reputation in the community?

Damon: That’s part of the Goodwill. Ask the seller what sets them apart. Look at ad spend, community donations. There’s no formula, but boots-on-the-ground questions go a long way.

Matt: Let’s talk about valuation. What’s a business worth?

Damon: There’s no fixed formula, but I’ll give you ranges:

• Under $1M in net income: 2.5x–4x earnings
• $1M–$5M: 3x–5x
• $5M–$10M: 4x–6x

Location and buyer pool matter. Same business in rural Idaho vs. metro Atlanta? Vastly different buyers.

Also, equipment value can match or exceed the valuation—some roll-off businesses sell at or near asset value.

Matt: Now let’s switch to the sell side. What should sellers do first?

Damon: First: clean up your financials. Three years is standard. Work with a CPA or advisor familiar with the industry.

You only get one shot to sell your business for max value. Most owners wait until it’s urgent—bad idea.

Matt: What are some steps to make the business more valuable?

Damon: Track metrics: revenue per haul, hauls per day, miles per stop. Clean your yard. Organize your books. If you’re using QuickBooks and spreadsheets, that’s fine—but the more clean data, the better.

Use software like Docket to track everything cleanly. It makes diligence much easier.

Matt: What docs should sellers prepare?

Damon: A business summary or CIM (confidential info memo). Include:

• 3 years of clean financials
• Detailed equipment list with market value
• Org chart (no names needed)
• Revenue segmentation (residential, commercial, etc.)
• Revenue from top 10 clients

Matt: How do you spot a good buyer?

Damon: Use your gut. Ask for references from buyers who’ve closed deals. A good broker will know the players—who pays well, who closes clean.

Watch out for tire-kickers. If a buyer strings you along for months and doesn’t close, that’s a common seller regret.

Matt: Is now (March 2025) a good time to sell?

Damon: Yes. Site services businesses are hot. Private equity, regional players, and solo investors are all active. Roll-off isn’t always a top priority for nationals, but regional players love it.

The industry is consolidating, and deal volume is high. Don’t wait too long.

Matt: What should sellers know about negotiating?

Damon: Pick your battles. Focus on key terms—price, tax impact, structure.

Don’t over-negotiate every line or the buyer may walk. An advisor helps keep emotions out and momentum going. Most deals die from lost momentum or seller/buyer fatigue.

Matt: Hidden costs sellers forget?

Damon: Not hidden, but often overlooked:

• CPA and legal fees
• Tax planning (especially recaptured depreciation)
• Emotional fatigue

Matt: Final thoughts?

Damon: M&A is exciting but hard. Use a broker or advisor who knows this space. You only get one chance to sell your business. Do it right.

Matt: Thanks again, Damon. For anyone listening, check out FMC Advisors. These guys are the real deal.

Damon: Appreciate the kind words. Thank you, Matt.

How to Buy a Dumpster Business

If you’re considering buying a roll-off dumpster company, it’s critical to understand the buying process. According to Damon from FMC Advisors, a typical acquisition involves interest from both sides, initial data exchange, a letter of intent (LOI), due diligence, contract negotiation, and then closing.

To begin, review three years of profit and loss statements. Mystery shop the company — call in like a customer to evaluate how they handle inquiries. Drive by their equipment and assess conditions in the field. These small actions can reveal a lot about how the business operates.

Also, understand if cash is being collected off the books. If the revenue isn’t documented but the expenses are, it inflates the perceived profitability and affects valuation.

Financial Due Diligence When Acquiring

Before buying, get clear on the company’s financials:

• Review 3 years of P&Ls
• Look for inconsistent expense categories
• Understand add-backs (owner expenses, depreciation, interest, etc.)
• Compare key cost ratios like maintenance or insurance to industry norms

If you’re not confident, enlist a CPA with experience in sanitation or waste services. The cleaner the books, the easier it is to assess risk.

Evaluating Customer Risk

Ask the seller for revenue breakdowns by customer (not names — just percentages). If one customer represents more than 20% of revenue, that’s a risk. Ask if any major customers were gained or lost in the last 12 months. A recent loss could signal trouble ahead, while new accounts may not be sticky.

How to Value a Dumpster Business in 2025

Damon outlines current valuation multiples based on adjusted net income (not raw P&L):

• Under $1M: 2.5x–4x
• $1M–$5M: 3x–5x
• $5M–$10M: 4x–6x

The more scalable and clean your operation, the higher the multiple. Location also plays a massive role. A business in a dense metro area has a larger buyer pool than one in a rural town.

Improving the Value Before Selling

To get top dollar when selling:

• Clean up 3 years of financials
• Track metrics like revenue per haul, hauls per day, miles per stop
• Organize your equipment list with market value
• Segment revenue by customer type (e.g., residential, commercial, industrial)
• Keep your facility clean and organized — appearance matters

Understanding the Current M&A Landscape

As of 2025, M&A activity in site services is strong. Private equity, regional buyers, and individual investors are acquiring roll-off companies across the U.S. However, roll-off-only businesses may be overlooked by large national haulers and instead appeal to regional operators looking to expand service offerings.

Working with the Right Buyer

Vet your buyer. Ask for references from past acquisitions. Understand their track record, communication style, and whether they close cleanly.

Watch out for tire-kickers — people who waste time and never close. These are often individual investors or unqualified buyers.

Negotiating the Sale

Most deals fall apart from emotion, over-negotiation, or fatigue. Use an advisor to stay objective. Focus on key terms like:

• Deal structure (asset vs. stock sale)
• Tax implications (especially depreciation recapture)
• Seller financing or consulting terms
• Timing and deliverables

8 FAQs Pulled Directly from the Interview