ITAD Reseller and Recycler, Mid-Atlantic IT Asset Disposition Firm

$8.1M

Revenue

$1.7M

SDE

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Full Editorial Writeup

This is an information technology asset disposition (ITAD) company operating out of two leased facilities totaling roughly 57,540 square feet in the Mid-Atlantic US. The business handles the secure collection, data destruction, reuse, recycling, and responsible disposition of retired electronic equipment, serving property managers and small to medium-sized businesses across its local footprint. It holds the latest R2v3 Responsible Recycling and RIOS certifications, which function as genuine barriers to entry: enterprise and government buyers will not hand over drives full of sensitive data to an uncertified vendor.

The economics are notable. On $8.1M of revenue the business throws off $1.73M of EBITDA, a 21% margin, and adjusted EBITDA grew at a 63.7% CAGR from 2023 through TTM August 2026 while revenue compounded at 10.8%. Margin expansion far outpacing revenue growth tells you the operating leverage is real: the proprietary operating portal integrating CRM, warehouse ops, logistics, data destruction tracking, and ecommerce is doing heavy lifting. Ecommerce resale averaged 82% of revenue from 2023 to 2025, which means the business monetizes recovered devices on open marketplaces rather than living purely on service fees.

The model has a built-in tailwind: electronics constantly go obsolete, and Windows 10 end-of-life plus the AI hardware refresh cycle will push a wave of corporate devices into disposition. The business captures value twice, once on the collection/destruction service and again on the resale of refurbished assets and recovered materials. The single owner is retiring and willing to support a transition, and both facility leases are assumable.

Why we like it

Earnings quality is strong and improving. A 21% EBITDA margin on $8.1M of revenue with adjusted EBITDA compounding at 63.7% while revenue grew only 10.8% shows real operating leverage, meaning the business is getting materially more profitable per dollar of sales rather than buying growth with margin.
The moat is the certification stack. R2v3 and RIOS certifications are expensive, audited, and slow to obtain, and enterprise, government, and healthcare buyers legally cannot use an uncertified vendor for data destruction. This keeps competition out and supports pricing on the service side.
The tailwind is structural and dated. Windows 10 end-of-life and the AI hardware refresh cycle are forcing a measurable wave of corporate device turnover, and every retired device needs secure disposition. Obsolescence is not cyclical discretionary demand, it is a recurring physical reality.
Dual monetization reduces single-point risk. The business earns on collection and data destruction services and then again reselling refurbished devices and recovered materials via ecommerce (82% of revenue). That resale channel converts a cost-center service into a high-throughput revenue engine.
Clean transition setup. A single retiring owner, assumable leases on both facilities, and a proprietary operating portal that already systematizes CRM, logistics, data tracking, and ecommerce mean the operational knowledge is partly embedded in software rather than trapped in the seller's head.

How to improve it

Push the mobile hard drive shredding service to local government, data centers, and healthcare providers. These segments have mandated data-destruction compliance and sticky budgets, and a dedicated outbound campaign could convert one-off clients into contracted recurring-destruction accounts with scheduled pickups.
Convert the client base to recurring disposition contracts. Today the model leans on episodic collection events, but property managers and SMBs could be signed to annual service agreements with scheduled pickups, which smooths revenue, improves retention, and raises the exit multiple.
Leverage national property management relationships to enter new metros. The business already serves property managers locally, so replicating the playbook in adjacent metropolitan markets using those existing national relationships is a capital-light geographic expansion.
Formalize the ecommerce resale operation. With 82% of revenue running through ecommerce, small improvements in listing optimization, pricing algorithms, and marketplace diversification (adding B2B bulk channels alongside consumer platforms) directly drop to the bottom line given the fixed-cost base.
Deploy the AI throughput initiative the seller already flagged. Automating device triage, grading, and data-wiping workflows increases units processed per labor hour, which is the single biggest driver of margin in a volume recycling operation.
Diversify the customer base beyond the local SMB concentration. The listing describes a mostly local client mix, so landing a handful of mid-market enterprise accounts under multi-year agreements would reduce customer concentration risk and provide predictable volume to underwrite expansion.

Diligence notes

Scrutinize the resale revenue mix and commodity exposure. With 82% of revenue from ecommerce device resale, margins depend on refurbished-device resale prices and scrap material recovery values, both of which can swing with electronics pricing. Understand how much of EBITDA is service fees versus resale spread.
Verify the 63.7% EBITDA CAGR and the quality of the addbacks. A margin expanding this fast on modest revenue growth demands a line-by-line review of the adjustments, one-time events, and whether 2026 TTM EBITDA is sustainable or inflated by favorable commodity pricing or a single large collection event.
Confirm certification status, renewal timelines, and transferability. The R2v3 and RIOS certifications are the moat, so verify they are current, audit-clean, and survive a change of ownership. Any lapse or facility-specific certification gap could impair the enterprise and government revenue overnight.
Assess customer and contract concentration. The listing describes mostly local property managers and SMBs with episodic collection, so quantify what share of revenue comes from the top customers and whether any relationships are contractual or purely transactional and at risk post-sale.
Review environmental and data-liability exposure. ITAD carries real tail risk: a single data breach from improperly wiped drives or an environmental compliance failure in material recovery can be catastrophic. Examine insurance, chain-of-custody documentation, and historical incident records.
Evaluate owner dependence despite the software portal. The proprietary operating portal helps, but confirm which vendor relationships, resale channel accounts, and compliance processes run through the retiring owner personally, and structure the transition and any earnout accordingly.

Source

Originally listed on BizBuySell. View original listing →