Shredding Business Valuation
Document Shredding Business Valuation Calculator & Exit Planning Built for Shredding Company Owners
We built one platform that tracks your shredding company's value monthly, identifies exit gaps early, and ensures your personal finances align with your exit timeline.
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Most Shredding Company Owners Have No Idea What Their Business is Actually Worth
Current Document Shredding Valuation Multiples (2026)
Document shredding valuations are driven by route density and recurring revenue. Here's the market:
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What Actually Drives Document Shredding Value
Your secure destruction matters, but sophisticated buyers evaluate these factors that determine premium pricing:
Recurring Revenue
70%+ Scheduled Service
Scheduled, recurring service routes are the foundation of shredding company value. Customers on regular schedules—weekly, bi-weekly, monthly—provide predictable revenue. Purge-only operations without recurring routes are valued much lower.
Purge-only = no recurring base
Route Density
Concentrated Service Territory
Dense routes with customers close together maximize efficiency—more stops per day, lower drive time, better economics. Route density is a key profitability driver. Scattered routes across wide geography have worse economics.
Sparse routes = inefficient
Customer Retention
90%+ Annual Retention
Shredding customers should be sticky—switching requires changing bins and schedules. 90%+ retention indicates service quality and competitive pricing. Track retention carefully; declining retention signals problems.
High churn = service concerns
Equipment Fleet
Modern Trucks, Well-Maintained
Shredding trucks are capital-intensive specialized equipment. Modern, well-maintained fleet supports operations and valuation. Aging trucks facing replacement get deducted. Know your equipment age and condition.
Old trucks = capex needed
Certifications
NAID AAA Certified
NAID AAA certification demonstrates industry-standard secure destruction practices. Many commercial and healthcare customers require certification. Certified operators have competitive advantages over non-certified competitors.
No certification = customer limits
Paper Revenue
Commodity Revenue Stream
Shredded paper has commodity value—paper sales provide additional revenue. However, paper prices fluctuate. Understanding your paper revenue and exposure to commodity swings helps assess total economics.
No paper sales = leaving money
How to Value a Document Shredding Business
The U.S. document shredding industry includes thousands of companies providing secure document destruction services for businesses and consumers. The industry generates approximately $3 billion in annual revenue, driven by privacy regulations and data protection requirements.
EBITDA or SDE is used depending on company size. Shredding businesses typically sell for 3.0x to 6.0x EBITDA, or 2.5x to 4.0x SDE. Companies with scheduled service routes and NAID AAA certification command the highest multiples.
Revenue multiples generally range from 0.50x to 1.0x annual revenue. Companies with recurring scheduled service routes achieve the upper end.
The unique valuation factor for shredding businesses is the recurring route base and regulatory compliance positioning. Scheduled shredding services — where trucks visit clients on weekly, bi-weekly, or monthly schedules to empty secure console bins — create annuity-like revenue with high retention rates. NAID AAA Certification (National Association for Information Destruction) provides third-party validation of secure destruction practices and is required by many enterprise and healthcare clients. The recycled paper revenue from shredded material provides an additional revenue stream that fluctuates with paper commodity prices.
Document shredding has been consolidated by companies like Stericycle, Iron Mountain, and Shred-it, but independent operators with strong local routes remain attractive targets. Use our free calculator above to get your instant estimate, then track your value monthly with YourExitValue.
Frequently Asked Questions
What multiple do shredding companies sell for?
Document shredding companies typically sell for 3.0x – 5.5x SDE or 5x – 9x EBITDA. Companies with high recurring revenue, dense routes, and NAID certification command premium multiples.
How does recurring revenue affect shredding value?
Dramatically. Scheduled service routes are the foundation of value. 70%+ recurring revenue commands premiums. Purge-only operations are valued much lower.
Who buys shredding companies?
National shredding companies (Shred-it, Iron Mountain, Stericycle), regional shredding operators, records management companies, and waste companies adding shredding.
Does NAID certification matter?
Yes. NAID AAA certification demonstrates secure destruction practices. Many customers require certification. Certified operators have competitive advantages.
How important is route density?
Critical. Dense routes maximize efficiency. More stops per day, lower drive time. Scattered routes have worse economics.
What's the fastest way to increase my shredding value?
Three high-impact moves: 1) Grow recurring scheduled service routes, 2) Improve route density in concentrated territory, 3) Achieve NAID AAA certification.