Thinking of buying a scrap metal business.... Any advice?

**Scrappah** · 08-20-2015, 06:06 AM

Just a couple of things come to mind.

1: Site contamination and any prior beefs with the EPA. It's like buying an old gas station that had leaking underground tanks -or- a site where toxic waste was once stored. It's the current owner and not the previous owner that's fully responsible for any fines & cleanup costs.

2: Timing is everything ! It's likely that you'll make some learning mistakes in the first few years. If the economic climate where you are is excellent the business will be able to absorb the loss. If the economic climate is marginal or poor it's possible that an error in judgement will put you under.

It would be a shame to look back five years from now and say to yourself that the basic idea was good but that it wasn't the right time to jump in.

**EcoSafe** · 08-20-2015, 08:01 AM

Originally Posted by Scrappah

Just a couple of things come to mind.

1: Site contamination and any prior beefs with the EPA. It's like buying an old gas station that had leaking underground tanks -or- a site where toxic waste was once stored. It's the current owner and not the previous owner that's fully responsible for any fines & cleanup costs.

2: Timing is everything ! It's likely that you'll make some learning mistakes in the first few years. If the economic climate where you are is excellent the business will be able to absorb the loss. If the economic climate is marginal or poor it's possible that an error in judgement will put you under.

It would be a shame to look back five years from now and say to yourself that the basic idea was good but that it wasn't the right time to jump in.

This would be my main concern. The EPA is full of bureaucrats waiting in the bushes to ambush you for a pat on the back or an ata-boy for one drop of oil in the wrong spot.

MY first step would be to hire a lawyer or consultant (preferably a former EPA supervisor). KAI