Details

This towing company has been in business for over 30 years in a northern California Metropolitan Area. They handle all types of vehicle towing and roadside and emergency services and, have on-call contracts with several law enforcement agencies.

As an 'essential service,' the company remained operating during the economic shutdown of 2020. Even with an extraordinary decrease in vehicle traffic, sales remained relatively strong and the business remained profitable. Current 2021 business is exceeding 2019 levels. Sales in 2019 were $2,450,000 with SDE of approximately $874,000. 2020 sales were $2,130,000 and SDE approximately $710,000. Complete details may be obtained by completing the NDA and speaking with the broker.

The business employs a staff of 18 (W-2) including the owner-operator.

Included in the sale are ten vehicles and all the ancillary equipment required. The vehicles had an estimated initial acquisition cost of $1.18 million and a current estimated fair market value of $843,000; they will be conveyed to the new owner free and clear of any and all liens.

The business is housed in leased premises at a month-to-month rent of about $2,500. An additional yard is also used and may be continued at the discretion of the new owner.

The owner is open to a training, transition, and consultation period, depending on the needs and wishes of the new owner and the terms of the transaction.

Price & Transaction. The asking price is $2,995,000 (subject to negotiation, terms, and timing). This price is about 4x typical annual SDE, 1.2x gross annual sales. All reasonable offers will be considered.

The business is offered as a sale of all the trucks and other tangible/physical assets of the company, plus the intangible property, including the highly-valuable business name, logo, websites, phone numbers, customer data, etc. It does not include accounts receivable, cash on hand, and facility rent deposits. Inventory of vehicles for sale is not included but may be acquired at a to-be-negotiated price. The seller will be responsible for all accounts payable and payroll through the date of closing. The current owner would be open to a training & transition phase to facilitate a smooth transfer to new ownership.

Note: All data on this business are provided by the Seller for information purposes only, and no representations are made by the Broker as to accuracy. The Broker has made no independent verification of the data contained herein. The Broker represents the Seller and does NOT represent the Buyer. The Buyer is advised to perform independent due diligence and seek the advice of appropriate qualified professionals prior to purchasing the Business.

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Disclaimer: DealStream has not independently verified any of the information in this listing and makes no warranty as to its accuracy or completeness. This listing does not constitute an offer to sell, solicit or make an offer to buy an investment interest. Offers to sell, or the solicitation of offers to buy, any security can only be made through official offering documents, such as a subscription agreement and private placement memorandum.