This Northern California Towing Service Company is a California C-Corporation that has been in business for the past 65 years and under current ownership for the last 37 years. They cover a geographical area of 5,000 square miles, and have 11 tow trucks, 1 service truck and 1 big rig. They have a Tow Service Agreement with California Highway Patrol (CHP), as well as agreement with several insurance companies, including a few major carriers such as AAA. They also participate in the abandoned vehicle abatement program.
This business generates slightly over $2M in revenue each year, with Seller Discretionary Earnings ranging from $200,000 to almost $600,000. There is a cash part of the business involving lien sales that generates a significant amount of revenue monthly. At any given time, there are approximately 75 vehicles on the lot being stored at a rate of $70 a day.
Reason for Sale
The reason for selling is the Seller would like to pursue other interests.
Full-Time Employees: 15
Owner Worked Hours/w:30
Inventory Included: No
Real Estate Available: Yes
Real Estate Included: No
Real Estate Value:
Building Size: 2500
FF&E Included?: Yes
FF&E Value: $1,250,000
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.
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. Growth can be obtained by increasing the vehicle fleet as well as developing a website and getting into digital marketing. This business currently does not have a website. Growth can also be obtained by getting into big rig recovery and getting into the CHP rotation for big rig wrecks.
Real State Description
There is an adjacent 1-acre lot that would be available for sale for an additional $250,000. This property is zoned for commercial / light industrial.