The towing industry is a vital and consistently profitable sector, offering an essential service that businesses and customers rely on. Despite its reputation as a niche market, the industry has demonstrated remarkable resilience, showing consistent revenues and strong profit margins even during economic downturns. Towing companies are generally recession-resistant, providing services for vehicle breakdowns, accident recovery, repossessions, and more. Additionally, high barriers to entry—such as the cost of purchasing and maintaining equipment, securing licensing, and complying with regulations—limit competition, creating an environment that favors established companies.
If you are considering buying or selling a towing company, it is important to understand how these businesses are valued and how they typically perform financially. To provide some context, we have aggregated towing business for sale listings to surface average revenue and profit, and derive valuation multiples.
Market Overview
Number of Businesses Analyzed
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51
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Median Asking Price
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$990,000
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Median Reported Revenue
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$800,000
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Median Reported Earnings
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$211,149
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Financials based on businesses that listed an asking price, annual revenue, and seller's discretionary earnings.
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Towing Business Valuation Multiples
Range
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Revenue
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Earnings (SDE)
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Lower Quartile
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0.85
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2.50
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Median
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1.15
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4.33
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Upper Quartile
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1.51
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5.90
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Revenue and earnings multiples based on reported revenue, seller's discretionary earnings, and asking price.
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Read the Report:
Towing Company Business Valuation Multiples & Benchmarks
FAQs
How much does it cost to buy a towing business?
Prices vary depending on the size of the business listed, but the median asking price for a towing company in the U.S. is $990,000.
How much do towing business owners earn?
Towing company owners report median annual sales of $800,000 and annual owner earnings of $211,149. These figures are based on businesses that have listed their annual revenue and seller's discretionary earnings.
How do I value a towing company?
Valuing a towing company involves considering several factors, including annual sales, profit, growth (or decline) trends, and demographic trends of the local market. Brokers, business owners, and business buyers will typically rely on valuation multiples to gauge business value relative to similar businesses in the market. Revenue multiples among towing companies listed for sale in the U.S. range from 0.85 to 1.51, with the median at 1.15. Earnings multiples range from 2.50 to 5.90, with the median at 4.33. These values suggest a typical towing business may sell for around 1.15 times its annual revenue, and& 4.33 times its annual owner’s earnings.
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