An Ohio plastic recycling processor

Ohio, OhioIndustrial plastics recycling and processing

The numbers

As stated by the listing on August 27, 2026.

Asking price
$1,300,000
SDE
$554,438
Gross revenue
$3,317,135
Multiple
2.34x
Established
1999

Why we like it

A plastic injection molder that scraps five percent of every production run has two choices: pay a hauler to landfill it, or hand it to a processor who grinds, washes and pellets it back into resin worth real money. Ohio's manufacturing corridor, still carrying plastics and rubber production tied to the region's industrial history, supports a steady population of processors doing exactly that: buying scrap by the truckload and selling reprocessed pellets to compounders who blend it back into new products. This business has run that trade since 1999, working industrial scrap at volume rather than sorting consumer recycling bins, which puts its economics closer to a commodity trading operation than a green mission. The margin on every pound depends on the spread between what scrap costs to buy and what virgin resin costs to replace, so when oil and natural gas prices push virgin resin lower, the reprocessed material has to chase it down too. Start with the supplier list on the inbound side and the customer list on the outbound side, because a processor squeezed between one supplier's scrap stream and one buyer's spec has no room to negotiate either price. The way this kind of business actually grows is by qualifying to process more grades of scrap, so one grinder and extruder line earns money on several material types passing through the same door instead of just one.

You probably need a licence to run this

Running a plastics scrap processing facility in Ohio typically requires environmental permits from Ohio EPA covering solid waste handling and possibly air emissions from grinding and extrusion, but these attach to the facility and entity rather than to the buyer personally. Confirm what permits the facility currently holds, whether they transfer with a change of ownership or must be reapplied for, and whether any are conditioned on a specific responsible individual named on the permit.

What worries us

  • Commodity price exposureReprocessed resin pricing tracks virgin resin, which moves with oil and natural gas feedstock costs, so the seller's stated cash flow reflects whatever pricing environment existed in the trailing period and may not hold if virgin resin prices fall.
  • Supplier and customer concentrationA processor that depends on a small number of manufacturers for scrap input and a small number of compounders for resin sales has little pricing leverage on either end, and losing one relationship on either side can hit volume hard.
  • Aging processing equipmentGrinders, washing lines, extruders and balers are capital equipment with finite service lives, and industrial recycling operations require ongoing maintenance and eventual replacement that can be substantial relative to the asking price.

The callSuits a buyer comfortable with commodity price swings and industrial equipment upkeep, not someone seeking predictable, recurring revenue.

Our calculations

Our standard SBA 7(a) acquisition structure applied to the asking price. Assumptions below.

Sources

SBA 7(a) loan$1,234,259
Seller standby note$68,570
Buyer cash at close$68,570
Total sources$1,371,399

Uses

Purchase price$1,300,000
Closing costs (est.)$39,000
SBA guaranty fee$32,399
Total project$1,371,399
Monthly payment
$15,803
Annual debt service
$189,631
DSCR
2.22xSTRONG
Injection check
Meets 10% ($137,140 against $137,140 required)
Assumptions, stated in full:
  • Closing costs estimated at 3% of asking price
  • Owner salary of $120,000, loaded
  • Rate of Prime + 2.25% = 9.25%
  • 10-year term, fully amortizing
  • Injection split half cash, half seller standby note

How we would go about buying it

The order matters. Every step below is free until the last one, and each is a chance to walk away before it costs you anything.

  1. 1

    Call the broker, not the bank

    The listing is brokered, so the broker is the gate. Ask for the CIM and the last three years of tax returns, and expect to sign an NDA first. Do this before you talk to a lender: no lender will size a loan without the numbers, and the broker will not release them to a lender you have not engaged.

    Open the listing
  2. 2

    Ask these before you spend anything

    Specific to this business, from our read of the listing. The answers decide whether the numbers above survive contact.

    • What environmental and operating permits does the facility hold with Ohio EPA, and do they transfer to a new owner or require reapplication?
    • What share of inbound scrap volume comes from the top three suppliers, and are those relationships under written supply agreements or spot-market arrangements?
    • What share of outbound resin sales goes to the top three customers, and are sale prices fixed or indexed to virgin resin benchmarks?
    • What is the age, condition, and remaining useful life of the grinding, washing, and extrusion equipment, and what capital expenditure has been deferred?
    • How was the seller's SDE addback calculated, and how much did resin pricing swings affect revenue and margin in the trailing twelve months?
  3. 3

    Take it to lenders who do this size

    Talk to more than one. Rate is the least of it: the lender who has done fifty of these in Ohio will close, and the one who has done two will waste your quarter. Below are the lenders whose typical deal size actually fits this one.

  4. 4

    Structure the offer around the coverage

    Our structure clears the floor at 2.22x, and a lender will run its own version with its own add-backs. If the earnings come back lower than stated, the price has to come down or the seller note has to grow. Model both before you make an offer.

    Model it yourself

Who we would call

Active Ohio acquisition lenders whose typical deal size fits this one.

  • Live Oak Banking Company

    39 loans in OHmedian $720,000median rate 8.93%~20 days to first disbursement

  • GBank

    15 loans in OHmedian $2,347,700median rate 8.50%~13 days to first disbursement

  • First Commonwealth Bank

    14 loans in OHmedian $834,750median rate 9.38%~24 days to first disbursement

Loan counts and medians are that lender’s change-of-ownership loans in Ohio, FY2025 to FY2026 Q3. Funding speed is the lender’s national median from approval to first disbursement. Names link to our data profile for each lender.

The fine print

The statements this write-up makes about the trade and its rules, as opposed to the figures, were checked against public sources on August 24, 2026. 3 claims were checked.

Worth verifying yourself

These are industry statements we could not confirm against an authoritative public source. They are not contradicted by anything we found, but treat them as leads to check rather than settled facts.

  • Manufacturers often pay to have scrap plastic removed or sell it cheaply because landfilling is costly and subject to regulation.
  • Operating a plastics scrap processing facility in Ohio typically requires environmental permits from Ohio EPA covering solid waste handling and potentially air emissions from grinding or extrusion operations.
This page is a process demonstration for education: how we would evaluate and structure this listing if we were the buyer. It is not investment advice, not a recommendation to buy this or any business, and not an offer of financing. We have no relationship with the listing party or the broker, we were not compensated for this pick, and we have not verified the listing’s claims.

Run your own numbers

The deal analyzer models price, seller note, equity injection, and DSCR under current SBA terms, with every assumption adjustable.

Open the deal analyzer

Listing facts as stated by the listing on August 27, 2026, not independently verified. Structure, payment, DSCR, and injection figures are our own computation under the assumptions above, using the Prime rate as of September 28, 2026. Lender shortlist from the SBA 7(a) FOIA file, FY2025 to FY2026 Q3, as of June 30, 2026. Methodology. See an error? Email us and we will correct it.