Making It with Jon Davids 196 - He Makes $19M a Day From Trash? Yes. Here's How.
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Jun 17, 2025 Discover how Ron Mittelstaedt transformed small-town trash companies into a $7.2 billion powerhouse. Explore the strategy of business roll-ups in fragmented markets and learn how standardized systems enhance efficiency. Dive into the profit potential of the garbage industry, where steady revenue and low churn rates dominate. Uncover the operational realities of the waste management business, from labor needs to the challenges of traditional models. This journey reveals the unexpected wealth behind what many overlook as mere refuse.
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Ron’s Trash Business Origin Story
- Ron spotted opportunity by focusing on small towns ignored by big trash companies.
- He built Waste Connections by buying mom-and-pop garbage companies and improving them.
Roll-up Playbook Essentials
- For a roll-up, find a fragmented industry with many small players and no dominant leader.
- Standardize operations, cut redundancies, and build professional management to scale.
Roll-ups Boost Company Value
- Bigger companies get higher valuation multiples than small ones, creating arbitrage value.
- Buying small businesses into a large company increases total company worth exponentially.