Buying a waste hauling company in Florida

A waste hauling company collects trash, recycling, yard waste or construction debris and takes it to landfills, transfer stations or recycling facilities. Small Florida haulers usually work in a few niches. Roll-off dumpster companies rent containers to contractors, roofers and homeowners for construction and cleanouts, charging per haul plus rental days and weight. Commercial front-load routes empty dumpsters at businesses and apartment complexes on a schedule for a monthly fee. Some companies run residential curbside routes under contract with a city or county, or offer junk removal, portable toilets or specialty waste.

The best of these are route businesses: recurring service at many stops, each one adding revenue to a truck already on the street. The big costs are trucks, drivers, fuel, maintenance and disposal fees (called tipping fees) at the landfill or transfer station. A typical small hauler has a handful of trucks, drivers with commercial driver's licenses, a mechanic or maintenance arrangement, a dispatcher and the owner.

• Recurring commercial accounts on dense routes, with service agreements that renew automatically.
• A broad base of roll-off customers, not one or two large contractors whose projects will end.
• A young or well-maintained fleet with maintenance records. A truck off the road for a week means missed pickups and unhappy customers.
• Reliable access to disposal at reasonable prices, perhaps including its own transfer or processing site.
• Franchises or permits in the cities and counties where it works, with years left to run.
• Experienced drivers who stay, and a clean safety record.
• Containers in good condition, counted and tracked.
• Routing and billing software that shows revenue per stop and per truck.

Florida doesn't issue a statewide license to haul ordinary trash or construction debris. The key permissions are local. Many cities and counties require haulers to hold a franchise, license or permit, sometimes with fees based on gross revenue, and some award exclusive franchises. Check each one's term, whether it can be transferred, and whether a change of ownership needs the government's approval. A hauler that collects separated recyclables from businesses must certify each year with the Florida Department of Environmental Protection (DEP) as a recovered materials dealer, and local governments can't require a franchise for that commercial work (section 403.7046).

Transfer stations, mixed-waste recycling facilities and construction debris sites generally need DEP permits. Waste tire collectors register with DEP, and portable toilet services need a DEP permit. Drivers of trucks rated over 26,000 pounds need a commercial driver's license, and commercial vehicles must follow federal and state safety rules on inspections, hours of service and drug and alcohol testing.

• Every franchise, license and permit: holder, area, term, fees, and conditions for transfer.
• Revenue by line (roll-off, commercial routes, residential contracts), and how much comes from the biggest customers.
• Disposal costs and agreements. Rising tipping fees can squeeze margins quickly.
• A fleet list with age, mileage, maintenance records and liens. Have a mechanic inspect the trucks.
• Container count and condition, and how many sit at customer sites.
• Driver records, accident history, insurance claims and the cost of auto liability coverage.
• Environmental issues at the yard: fuel, oil, wash water and any DEP enforcement.
• Contracts with cities or counties, and their renewal or rebid dates. Ask whether any local government plans an exclusive franchise or its own service. Before a city or county takes over a service a private hauler provides, state law requires a hearing, 3 years' notice and compensation, but not when it simply declines to renew a contract (section 403.70605). Ask your attorney whether that protection covers a new exclusive franchise.
• Customer service agreements: length, automatic renewal, price increase terms, and whether they can be assigned.

• Which franchises and permits do you hold, and when do they come up for renewal?
• How does your revenue split between roll-off, commercial routes and government contracts?
• Where do you dump, and what do you pay per ton?
• How old is your fleet, and what are you planning to replace?
• How long have your drivers been with you, and how do you hire new ones?
• What accidents and insurance claims have you had?
• Who are your biggest customers?