71-Year Auto Salvage Yard Near NYC

Full Editorial Writeup

This is a 71-year-old automotive salvage and recycling operation located in New Jersey, roughly 10 miles from New York City. The business buys end-of-life vehicles including cars and commercial trucks, then systematically processes them: weighing, draining fluids, pulling batteries, seats, steering, wheels, tires, engine parts, and glass, then routing each component to either parts resale or scrap metal recycling. That dual-revenue model is the whole game here, and it is a smart one. Parts sales carry fat margins and the scrap floor catches whatever does not sell, so you are diversified across a retail channel and a commodity channel inside the same yard.

The numbers are the headline. On $4.36M of revenue the business throws off $2.27M of SDE and $2.25M of EBITDA, which is a 52 percent owner-earnings margin. That is extraordinary for a yard, and it tells you this is a mature, paid-off operation with cheap inventory acquisition and a long-tenured customer base of repair shops and DIY 'car guys.' Three full-time staff work the phones filling orders daily, and there are 35 total employees with a GM in place.

The sale includes a massive parts inventory listed separately ($2M not included in asking) and a $5.06M FF&E package that IS included: scale, testing equipment, backhoes, welders, cutting equipment, trailers, racks, and computer systems. The real estate is owned and valued at $4M but is NOT included in the asking price, available via long-term lease or separate acquisition. The owner is retiring, which is the classic reason a high-cash-flow boring business hits the market underpriced.