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NORTHERN CALIFORNIA TOWING SERVICE COMPANY - SC2134



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NORTHERN CALIFORNIA TOWING SERVICE COMPANY - SC2134

 

Financial Information

  • Asking Price: $1,650,000
  • Cash Flow: $208,343
  • Gross Revenue: $2,045,153
  • Down Payment: $1,650,000
  • Financing: No
  • FFE (Included): $1,250,000
  • Inventory(Included): N/A

Business Location

  •  Northern California

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.
 
 

Reason for Selling

The Sellers are selling to pursue other interests.
 

 

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 License ID: 02100708



Listed By: Adriana Sargent

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Background information

Reference:

SC2134

Year established:

1958

Reason selling:

The Sellers are selling to pursue other interests.

Operations

Employees:

Part-time Employees: 1 Full-time Employees: 15

Equipment:

FFE (Included): $1,250,000

Inventory:

N/A

Premises

Facility:

Is Property Leased: Yes Real Estate Included: No Real Estate Available: Yes Real Estate Value: $250,000 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.

Square footage:

2500sq ft

Rent and lease terms:

Monthly Rent: $6,000

Location:

 Northern California

Opportunities

Growth:

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.

Market:

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.

Price and terms

Price:

$1,650,000

Down payment:

$1,650,000

Financing:

N/A

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.