Listing ID: 77519
his towing company has been in business for 33 years in San Mateo County. They handle all types of vehicle towing and roadside and emergency services and ,have on-call contracts with several law enforcement agencies.
As an ‘essential service,’ the company remained operating during the economic shutdown of 2020. Even with an extraordinary decrease in vehicle traffic, sales remained relatively strong and the business remained profitable. Current 2021 business is exceeding 2019 levels.
The business is housed in leased premises at rent of about $2,800 per month.
Sales in 2019 were $598,000 with SDE of $283,000. Final 2020 sales and SDE are being determined.
Equipment includes a 2020 Freightliner M2 flatbed (~20k miles) and a 2015 Dodge Ram 5500 wrecker (~110k miles).
Complete details may be obtained by completing the NDA and speaking with the broker.
The owner is open to a training, transition, and consultation period, depending on the needs and wishes of the new owner and the terms of the transaction.
Price & Transaction. The asking price is $659,000 (subject to negotiation, terms, and timing). This price is about 2.3x typical annual SDE, 1.10x gross annual sales. All reasonable offers will be considered.
The business is offered as a sale of all the trucks and other tangible/physical assets of the company, plus the intangible property, including the highly-valuable business name, logo, websites, phone numbers, customer data, etc. It does not include accounts receivable, cash on hand, and facility rent deposits. The seller will be responsible for all accounts payable through the date of closing. The current owner would be open to a training & transition phase to facilitate a smooth transfer to new ownership.
Exclusive Broker: Tim Cunha, J.D. DRE# 01919755
Note: All data on this business are provided by the Seller for information purposes only, and no representations are made by the Broker as to accuracy. The Broker has made no independent verification of the data contained herein. The Broker represents the Seller and does NOT represent the Buyer. The Buyer is advised to perform independent due diligence and seek the advice of appropriate qualified professionals prior to purchasing the Business
- Asking Price: $659,000
- Cash Flow: $283,000
- Gross Revenue: $600,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 1989
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:N/A
- Furniture, Fixtures and Equipment:N/A
The venture was established in 1989, making the business 33 years old.
The property is leased by the company for $2,800 per Month
Why is the Current Owner Selling The Business?
There are all types of reasons people decide to sell businesses. However, the real factor and the one they tell you may be 2 totally different things. For instance, they may claim "I have too many various commitments" or "I am retiring". For lots of sellers, these factors are valid. But, for some, these may simply be reasons to try to conceal the reality of transforming demographics, increased competition, current decrease in earnings, or a range of other reasons. This is why it is really important that you not depend entirely on a seller's word, but rather, use the seller's answer combined with your total due diligence. This will repaint a more practical picture of the business's present scenario.
Existing Debts and Future Obligations
If the current entity is in debt, which many businesses are, then you will certainly have reason to consider this when valuating/preparing your deal. Many operating businesses take out loans so as to cover things like inventory, payroll, accounts payable, and so on. Bear in mind that occasionally this can imply that profit margins are too tight. Lots of companies fall into a revolving door of taking on debt as a way to pay back other loans. In addition to 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 agreements with suppliers that need to be satisfied or may lead to penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do companies in the area bring in brand-new customers? Many times, businesses have repeat clients, which create the core of their daily profits. Certain elements such as brand-new competition growing up around the area, roadway building and construction, as well as employee turnover can impact repeat consumers and negatively influence future profits. One vital thing to think about is the location of the business. Is it in an extremely trafficked shopping center, or is it concealed from the highway? Undoubtedly, the more people that see the business regularly, the better the opportunity to construct a returning client base. A final thought is the general area demographics. Is the business situated in a largely inhabited city, or is it situated on the outskirts of town? Exactly how might the regional median household earnings influence future revenue prospects?