It works on paper. Until you add one realistic assumption.
This is a roll-off dumpster rental business listed at $925K with $240K in cash flow on $750K of revenue.
At first glance, it looks fine. The numbers pass. But that’s exactly where most buyers stop.
Deal Snapshot
Let’s run this through a standard SBA-style scenario.
Base Case (Owner-Operated)
This is where most buyers stop. The deal passes. It looks fine.
Now Add One Realistic Assumption
You won’t want to run this forever. So let’s add a $80K operator.
Adjusted Case (With Operator)
That one change destroys the deal. You go from a workable scenario to almost no margin for error.
What Stands Out
- Looks solid at first glance: Cash flow and margins appear healthy.
- Industry fundamentals: Essential service with steady demand.
- Decent base DSCR: Works under ideal owner-operated assumptions.
What Actually Breaks It
- Operator dependency: Adding realistic labor collapses cash flow.
- Thin post-debt margin: ~$32K leaves no room for error.
- DSCR failure: Drops below SBA threshold without more equity.
- Higher equity requirement: Forced from 10% to ~15% down.
- Premium pricing: 3.85x multiple above industry average (~2.78x).
BizHub Verdict
This deal scores a 5.5 / 10. Not because it’s terrible, but because it’s fragile.
It only works if you stay involved or accept very little margin for error.
Any missed assumption, any slowdown, or any unexpected cost, and you’re immediately in a tight position.
This is the difference between a deal that passes on paper and one that actually gives you room to operate.
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Want to see the original listing? View it here →