Business Overview

***IN ESCROW*** THIS BUSINESS IS IN ESCROW. Profitable Towing Company in Ventura County with exclusive contracts in place.

Company’s current contracts include AAA, California Highway Patrol plus other contracts with well known municipalities. Please note that buyer must apply and qualify for the transfer of the contracts and will need related experience in order to qualify. Sale price includes an extensive list of furniture, fixtures and equipment plus a large number of commercial towing vehicles and equipment with an estimated value north of $500,000+. This business is priced to sell and sellers are looking to retire.

Consistent year after year earnings and cash flow. Pre-Covid gross revenue ranged $2.4M – $2.7M with cash flow ranging $389K – $395K. 2021 gross revenue and profitability is trending upwards and projected to be consistent with pre-covid sales. Favorable, long term premise lease in place for the company facility with a yard that is located in a prime area. Excellent clean books and records including tax returns. Several opportunities for growth. Current owner does very little marketing. SBA finance may be available for a qualified buyer or Seller will consider seller finance with a substantial down payment and good credit for a qualified buyer with related experience. This is a unique opportunity to purchase a well-established, reputable tow business with impressive contracts in place and a large amount of assets included in the purchase price.

Please note this is a confidential matter and no additional information will be provided until a Confidentiality Agreement and background information has been submitted. Buyer must have related experience. Please hit the reply button or the Contact Seller button or email info@mabusinessadvisors.com to receive a confidentiality agreement plus instructions and learn more about this opportunity.

Financial

  • Asking Price: $995,000
  • Cash Flow: $395,847
  • Gross Revenue: $2,727,813
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: $2,500
  • Inventory Included: Yes
  • Established: 1985

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:26,000
  • Lot Size:N/A
  • Total Number of Employees:20
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

Large Yard with office Office building, portable trailer and equipment and fleet of trucks

Is Support & Training Included:

Seller will provide training at no cost to qualified buyer.

Purpose For Selling:

Retiring

Pros and Cons:

Seller to discuss

Opportunities and Growth:

Seller to discuss

Additional Info

The venture was started in 1985, making the business 37 years old.
The sale will include inventory valued at $2,500, which is included in the requested price.

The company has 20 employees and is located in a building with approx. square footage of 26,000 sq ft.
The real estate is leased by the business for $7,500 per Month

Why is the Current Owner Selling The Business?

There are all sorts of reasons why people resolve to sell companies. However, the true factor and the one they tell you might be 2 completely different things. As an example, they might say "I have a lot of other obligations" or "I am retiring". For numerous sellers, these reasons stand. But also, for some, these might simply be excuses to attempt to hide the reality of transforming demographics, increased competitors, recent decrease in profits, or an array of other factors. This is why it is extremely important that you not rely completely on a vendor's word, however rather, make use of the seller's answer along with your overall due diligence. This will paint an extra reasonable image of the business's current situation.

Existing Debts and Future Obligations

If the current business is in debt, which numerous businesses are, then you will have reason to consider this when valuating/preparing your offer. Many businesses take out loans so as to cover items such as stock, payroll, accounts payable, etc. Bear in mind that in some cases this can imply that profit margins are too tight. Lots of businesses fall under a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may likewise be future obligations to take into consideration. There might be an outstanding lease on equipment or the building where the business resides. The business may have existing contracts with suppliers that should be satisfied or might result in penalties if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Just how do companies in the area attract brand-new customers? Most times, companies have repeat clients, which form the core of their everyday revenues. Certain aspects such as brand-new competition sprouting up around the location, roadway construction, and also employee turn over can affect repeat customers and negatively influence future revenues. One important thing to consider is the location of the business. Is it in a very trafficked shopping mall, or is it hidden from the highway? Clearly, the more people that see the business often, the higher the chance to construct a returning consumer base. A last idea is the general location demographics. Is the business placed in a densely inhabited city, or is it situated on the edge of town? Just how might the local median household earnings influence future revenue prospects?