This towing and equipment transportation company was established in the 1960s. It serves commercial, fleet and individual customers offering local and long distance towing and recovery, roadside service, heavy equipment hauling and vehicle storage. The business has a significant portfolio of large corporate clients in addition to thousands of individual customers. The employees are dependable, well trained, drug free and all drivers have passed strict background checks. The business’s fleet of clean and meticulously maintained late model flatbed tow trucks allow for a rapid response to tow or recover almost any vehicle. It is an award winning company featuring continued strong growth in an expanding market and an A+ rating with the BBB.The owner has systemized many of the business processes enabling him to maintain a passive role. The company’s day to day operations are run by a skilled General Manager and staff.
FacilitiesTrucks, wreckers and trailers are stored at the seller’s facility which also has an attached fenced in impound vehicle storage lot. All real property of the business can be purchased for $350K or leased at a reasonable rate. Alternatively the headquarters and impound lot could be relocated if the buyer so chooses.
Financials
Asking Price: $1,700,000
Included in the Asking Price: Trucks and equipment worth $780,000
2017 Revenue: $2,560,000
2017 Cash Flow: $512,000
Market Outlook
Competition: There are not many full-service wrecker operators on the Front Range of Colorado. Every year more and more key high margin heavy duty customers make the switch to this business. Equipment rental customers now bring in $1M/year of revenue. Unlike the competition, this business offers well developed services that bring in new customers and a client centric culture that keeps them from leaving.
Growth and Expansion: One of the business’s larger auto insurance clients recently suggested expanding service into several nearby communities as the tow companies serving that area appear to be unresponsive to the increasing market demands. The existing office could act as the dispatch center. Adding a second impound yard in one of those locations would provide a good amount of new low risk business. In addition, the State Patrol has called in this responsive business to handle many tractor trailer accidents that local towing companies refused to service. These accidents can only be handled by only a few companies in the state. Revenue generated from this type of recovery can run up to $40,000 each.
About the Sale
The owner plans to retire and is willing to train the new owner for 30days free and somewhat longer consulting capacity if needed.
