The business is in the e-waste collection, recycling, disposal, and electronics sectors, along with the resale of items via auction. Their customers are primarily in the Southern California entertainment industry, including production and broadcast studios, businesses, and individuals.
The business receives requests to tear down production studios that are renovating, closing, or relocating. The team will take anything from the studio with potential value: video and audio gear, production and post-production equipment, and office electronics such as desktop computers, laptops, servers, networking gear—even the copper wiring in the walls! The staff then determines those items with resale value vs. those items with only scrap value. The scrap items are sorted for pickup by various recyclers, and items with a resale value are handed off to the auction side of the business. In addition to receiving saleable equipment from the recycling group, the business also receives requests to auction equipment from individuals and estates looking to sell; they pickup and auction these items on consignment. They typically hold online auctions twice per month, with approximately 200 items at each auction. Most items sell; the rare unsold items are pushed to the next auction or scrapped. After completion, it takes approximately one week to collect the revenue and for buyers to pick up their items. They do not offer shipping but have an established relationship with a shipping company should a buyer want to ship.
The owners have hit retirement age and are looking for a successor to take their company to the next level. This is an opportunity for a growth-minded buyer to expand. First and foremost, focus on marketing and advertising to expand into new niches; current owners do zero advertising. Improve the business’s digital presence: the business has minimal social media, and the website needs a facelift. In addition, a buyer can increase revenue by expanding the types of recycled items they collect. The business acquires their equipment and material 50/50 from businesses and individuals. Advertise to baby boomers with garages full of old electronics to increase volume. The two businesses are an opportunity for an existing business or individual to step into a profitable operation, acquire a large list of relationships and vendors, and grow. The business is growing but has so much more potential with active owners! If this niche sounds like the right fit for you, contact the agent today!
