Sort of a poor comparative, a single waiter can't easily advertise and market themselves to increase their market share; they are somewhat limited to the number of man hours they can perform in a given time period.
Before I was around, my grandfather bought a local shopping paper that was struggling to pay the bills; and at 2 pages(1 sheet front and back) and circulation of 250-500 that got handed out every week, it was more like a flyer than a paper. Even though when he bought it, it was so small, he printed it with my father in his basement; it already had somewhat of an infrastructure so it made more sense to buy it than wasting the time and money to start from scratch and just let the competition fade away. Before it was all said and done, and without the benefit of the internet back in the 60's and 70's; he developed it into a free shopping paper with 40+ pages of nothing but advertising. And his company handed out or delivered 250,000 copies door to door weekly; before selling it for $1,000,000 cash(more than chump change for the 70's) to the nearest significantly sized city's newspaper back in the late 70s. Just say'in.
So actually, from a fundamental perspective, if you read in between the lines a little... $70K is immediate annual profit out of the gate with current contracts, not total annual revenue from the acquisition. And frankly, at this point the business is probably little more than an existing business infrastructure, but with revenue exceeding it's expenses from current contracts.
It had two other significant contracts when the company first started considering it. Both of which moved on because they were big enough firms that felt justified in hiring and paying an entire staff to do it in house instead of farming it out as a service. They may or may not discover it was a good decision or bad move after realizing possible hidden costs like turnover of employees seeking greener pastures, paying for continued education or sending their staff to training seminars on a regular basis to stay ahead of the latest ever changing technological industry threats. So one or both may or may not come back.
Regardless, it is probably more cost effective for medium sized companies to farm it out as a service, than hire an in house staff. And frankly, with the turnkey infrastructure already in place with more income than expense to start, once the closing takes place it is just a matter of active marketing for growth.
CEO here has already demonstrated that he can land multiple government and other public works contracts with the California recycles E-waste subsidiary. Again, just say'in
News 
Market Data 
Discover 
