Northern California Towing Service Company - SC2134

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Northern California Towing Service Company - SC2134

Listed by Business Broker
Northern California Towing Service Company - SC2134

Asking price $1,650,000

Cash Flow: $208,343

Gross Revenue: $2,045,153

EBIT DA: No Data

FF&E: $1,250,000

Inventory: No Data

Established: 1958

Type: Independent

Business listed by:
Brett Sargent
Sunbelt Business Brokerage of Sacramento

Business Description:

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.

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. 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.

Support & Training

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.

Detailed information

  • Year Established: 1958
  • Home-Based: No
  • Franchise: No
  • Relocatable: Yes
  • Required Licenses: 
  • Is Property Leased: Yes
  • Real Estate Included: No
  • Real Estate Available: Yes
  • Real Estate Value: $250,000
  • Part-time Employees: 1
  • Full-time Employees: 15
  • Building Size: 2500sq ft 
  • Monthly Rent: $6,000
  • Real Estate 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.

Broker: ProEquity Asset Management Corporation License ID: 01870526

Selling Reason:

The Sellers are selling to pursue other interests.

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