Pre-close · Waste & Recycling

Waste & Recycling Deals: State Tax Planning Done Right

Securities and M&A counsel for independent sponsors planning waste and recycling transactions, from LOI to close to the capital markets that open up afterward.

EV range $12M to $150M EV EBITDA $3M to $25M Audience Buy-side / Sponsor
The deal context

Every waste and recycling acquisition has its own gravity. State Tax Planning is the workstream where independent sponsor counsel earns the seat.

The typical waste and recycling platform sits at $12M to $150M EV with EBITDA in the $3M to $25M range. The thesis runs on regional hauler or transfer station consolidation. Permitted volume is the asset, not the trucks. Diligence the permits before the EBITDA.

The moves

How State Tax Planning actually gets structured.

  1. Map nexus exposure in every state the target operates in, including remote workers.

  2. Plan sales tax succession liability, particularly in California, New York, and Texas.

  3. Address pass-through entity tax (PTET) elections where federal SALT cap matters.

  4. Document state-by-state qualification for the new entity post-close.

  5. In waste and recycling, layer in permit transfer applications filed before LOI signing as part of the State Tax Planning workstream.

The common mistake

Assuming state tax is a closing-mechanics issue. It is a valuation issue when the historic liability is large.

Jason's take
"State tax is where the seller's lawyer forgot to look. The buyer always pays for it."
Jason Powell · State Tax Planning
Capital after close

The deal is one thing. The capital that opens up after close is another.

The capital that opens up post-close, from refinancing to growth equity to strategic exit, runs through a small set of Wall Street relationships. That network is built in.

MONTH 18
Senior refi
MONTH 24
Dividend recap
MONTH 36
Growth equity
YEAR 4–5
Strategic exit
ENGAGE THE PRACTICE

State Tax Planning for Waste & Recycling, on independent sponsor terms.

Independent sponsor counsel that already speaks fluent deal-by-deal economics, structures clean LPAs, and travels with capital markets relationships for what comes after close.