71-Year Auto Salvage Yard Near NYC

$4.4M

Revenue

$2.3M

SDE

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Full Editorial Writeup

This established automotive salvage operation represents a premier opportunity in the secondary automotive parts and recycling industry. The company has developed a comprehensive business model... Businesses Franchises Brokers Loading... Once in a lifetime-Auto Salvage-Extraordinary! New Jersey Asking Price:Not Disclosed Cash Flow (SDE):$2,270,000 EBITDA:$2,250,000 Gross Revenue:$4,360,000 Real Estate:$4,000,000* Established:1955 *not included in asking price. Once in a lifetime-Auto Salvage-Extraordinary! Business Description Auto salvage-Spectacular-Cash Flow! This established automotive salvage operation represents a premier opportunity in the secondary automotive parts and recycling industry. The company has developed a comprehensive business model centered on the systematic acquisition, processing, and resale of end-of-life vehicles including automobiles and commercial trucks. Operational Excellence: The facility operates a sophisticated vehicle processing system featuring systematic disassembly protocols. Upon arrival, vehicles undergo precise weighing and systematic component extraction including fluid recovery, battery removal, seating assemblies, steering mechanisms, wheels, and tires. All automotive components, including engine parts and glass elements, are subjected to rigorous quality assessment to determine optimal disposition channels. Revenue Streams: The business generates income through multiple channels including parts resale operations and scrap metal recycling. Each component undergoes systematic evaluation to maximize recovery value through either direct parts sales or commodity recycling markets. This dual-revenue approach provides operational stability and market diversification. Inventory Management: The company maintains organized inventory systems with appropriate component categorization and storage protocols. This systematic approach ensures efficient parts retrieval and optimal space utilization while maintaining component integrity. Real Estate Opportunity: The operation includes access to established real estate through long-term lease arrangements with potential acquisition opportunities available for qualified buyers seeking complete operational control. This turnkey operation offers immediate market entry into the established automotive recycling sector with proven operational systems and established customer relationships. The business model demonstrates strong fundamentals in the growing automotive recycling industry, which continues to benefit from increased environmental awareness and cost-conscious consumer behavior in automotive maintenance and repair markets. Ad#:2514197 Detailed Information Inventory: $2,000,000Not included in asking price Furniture, Fixtures, & Equipment (FF&E): $5,060,000 Included in asking price Employees: 35 Full-time Variety of employees-GENERAL MANAGER on duty Facilities: Huge auto salvage operation-very well run-very lucrative-recession resistant All equipment included-scale, testing equipment, back hoes, tools, welding equipment, cutting equipment, trailers, racks, computer systems long list of quality equipment INCLUDED in sale. MASSIVE parts inventory included and for sale and selling daily-3 people working the phones full time and filling orders to auto repair facilities and car guys. Competition: 10 miles from NYC means there are other competitors, but this operation is extraordinary AAA location! Growth & Expansion: Huge grow through expanding international sales. Financing: Open to negotiation Support & Training: Whatever is needed for smooth transition. Likely to be several weeks or longer-to be negotiated as part of the sale. Reason for Selling: Retirement Business Website: https://www.carlpallinipa.com Business Location Real Estate: Owned Not included in asking price Building SF: 7,000 Listing Statistics Saved This Listing Listing Last Updated Appeared in Search Listing Detail Views BizBuySell EDGE Know the True Market Value Before You Make an Offer Get valuation data to negotiate with confidence. Get a Valuation Report Business Listed By: Carl Pallini Tri State Business Authority View My Listings Phone Number 570-559-3704 Voice only (no SMS) Ad#:2514197 The information in this listing has been provided by the business seller or representative stated above. BizBuySell has no stake in the sale of this business, has not independently verified any of the information about the business, and assumes no responsibility for its accuracy or completeness. Read BizBuySell's Terms of Use before responding to any ad. Learn how to avoid scams. 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Why we like it

Earnings quality is exceptional for the category, with $2.27M SDE on $4.36M revenue, a 52 percent margin that signals paid-off assets, cheap inventory inputs, and pricing power on parts. EBITDA and SDE are nearly identical at $2.25M and $2.27M, which suggests modest owner add-backs and clean, real cash flow rather than aggressive seller adjustments.
The moat is location plus time. Seventy-one years in business 10 miles from NYC means entrenched relationships with repair shops and decades of accumulated inventory and processing know-how that a new entrant cannot replicate. Salvage yards also face heavy permitting and environmental zoning barriers, so the AAA location is effectively un-cloneable.
Demand is genuinely recession resistant. When money is tight, drivers and shops repair rather than replace, and used and salvaged parts win directly at the expense of new OEM parts. The scrap metal side adds a commodity hedge, so you make money whether the value is in the part or the steel.
Operator leverage is real because a GM is already running the floor and three dedicated phone staff handle order flow. The stated growth path into international sales is plausible given the parts inventory, and the business is structured to run without the founder living in it day to day.

How to improve it

Stand up a proper online parts catalog and integrate with marketplaces like eBay Motors, Car-Part.com, and Hollander interchange systems. Three people on the phones is a 1990s sales motion, and digitizing the inventory unlocks national and the proposed international demand without adding floor labor.
Negotiate the real estate purchase as part of the deal rather than carrying a long-term lease. At $4M the owned property generates a controllable cost line, and owning the dirt protects you from lease renewal risk on an irreplaceable, permitted salvage site near NYC.
Implement dynamic scrap hedging and contract pricing on commodity metals. With steel and aluminum prices swinging, locking forward sales or setting price floors with scrap buyers smooths the most volatile revenue line and protects the EBITDA margin in down cycles.
Audit and accelerate inventory turns on the $2M parts stock. Salvage yards bleed cash when slow-moving SKUs occupy prime racking, so a 90-day aging report tied to automated markdowns frees capital and space while keeping fast movers in stock.
Build a fleet and commercial truck acquisition pipeline. The listing already processes commercial trucks, and heavy and medium duty salvage parts carry higher per-unit margins than passenger cars, so dedicated buyer relationships with fleets and insurers can lift average vehicle yield.
Formalize the GM role with documented SOPs and an incentive comp plan tied to gross margin. A retiring owner means tribal knowledge is walking out the door, so capturing processing protocols and locking in the GM economically de-risks the transition and supports an eventual second sale.

Diligence notes

Verify the $2.27M cash flow with three years of tax returns and bank statements, and scrutinize whether scrap commodity pricing in recent years inflated the trailing numbers. A spike in steel prices can temporarily flatter a salvage yard's earnings, so normalize against a multi-year scrap price average.
Pin down the real estate and lease structure precisely. The property is owned and valued at $4M but excluded from asking, offered via long-term lease with optional purchase, so confirm lease term, rent, renewal rights, and whether the seller will commit to a sale price before you build a model.
Confirm environmental and regulatory standing in full. Salvage yards carry contamination, fluid disposal, and stormwater liability, so commission a Phase I and likely Phase II environmental assessment plus a review of all DEP permits before any close, since legacy soil issues can dwarf the purchase price.
Reconcile the inventory and FF&E valuations. The $2M parts inventory is excluded and the $5.06M FF&E is included, so validate the FF&E with an independent equipment appraisal and confirm the parts inventory is realistically saleable rather than aged dead stock you'd be buying separately.
Assess customer and channel concentration. Three phone reps fill orders to repair shops and individual buyers, so request a revenue breakdown by channel and top customers to gauge whether earnings depend on a handful of accounts or a broad, sticky base.
Clarify the asking price and deal terms, which are entirely undisclosed. With financing 'open to negotiation' and real estate and inventory carved out, build a full sources-and-uses before engaging so you can frame an offer on operations alone versus the full asset package.

Source

Originally listed on BizBuySell. View original listing →