This Northern Californian Towing and Storage Company is a Californian Limited Liability Company that has been in business for the past 32 years under the same ownership. They operate out of one main location with 3 storage facilities and provide full-service towing capabilities. They have 10 tow trucks and operate on a 24x7 basis, including 1 heavy duty wrecker and 1 medium duty wrecker, and 2 light duty wreckers. The remaining 6 are carriers. They provide Law Enforcement towing on a rotation basis. In addition to as needed towing, they do have several contracts in place that provide a steady stream of revenue to meet their towing needs, including a transferable exclusive contract that averages over 10 tows per day. Reputation, longevity, and high-quality equipment differentiate this company from the competition.
Financial Information
$7,000,000
Asking Price
$1,500,000
Cash Flow
$2,600,000
Gross Revenue
$7,000,000
Down Payment
Business Location
City:
Northern California
State:California
Reason for Sale
The reason for selling is the Seller would like to pursue other interests.
Detailed information
Year Established:1992
Home Based:No
Franchise:No
Relocatable:No
Lender Prequalified:No
SBA Prequalified:No
Full-Time Employees: 12
Part-Time Employees:N/A
Contractors:N/A
Owner Worked Hours/w:30
Adjusted EBITDA:
$570,000
Inventory Included: Yes
Inventory Value:
$150,000
Monthly Rent:
$10,000
Real Estate Available: No
Real Estate Included: No
Real Estate Value:
N/A
Building Size: 10000
FF&E Included?: Yes
FF&E Value: $1,700,000
Training/Support
The Seller is willing to train the new Owner for up to 4 weeks at 30 hours per week. Additional training from the Seller may be available at mutually agreed upon compensation from the Buyer to the Seller.
Facilities
This business operates out of a 10,000 square foot main location with monthly base rent of $10,000 and no CAM charges. This is a 5-year lease that is assignable. They also have 2 additional staffed storage facilities that range in rent from $3,500 to $3,800 each with varying lease terms that are assignable.
Market Outlook/Competition
The U.S. roadside assistance market is projected to grow from $5.99 billion in 2022 to $7.73 billion by 2029, at a CAGR of 3.71% during the forecast period. The global towing vehicle market is projected to grow at CAGR of 5.41% during the forecast period, reaching a total market size of $9.2 trillion in 2027 from $6.4 trillion in 2020.
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