Towing Business
24/7 demand — breakdowns and accidents never take a day off
Towing businesses provide vehicle recovery and transport services for breakdowns, accidents, and parking enforcement. Revenue comes from motor club contracts (AAA, etc.), police rotation lists, private property towing, and direct consumer calls. The business runs 24/7 and demand is extremely consistent.
Avg Revenue
$400K
Profit Margin
27%
Acquisition Multiple
2x - 3x
Startup Cost
$50K - $200K
Difficulty
3/5
How It Works
Revenue streams include motor club calls (AAA pays per tow), police/municipality rotation calls, private property enforcement, and direct consumer calls. A tow truck responds to calls, recovers or transports the vehicle, and charges for the service. Impound lots generate additional storage fees.
Revenue Range
Real Acquisitions in This Category
SBA 7(a) change-of-ownership loans · NAICS 488410 · Motor Vehicle Towing
Deal Size Distribution
Deal Flow Over Time
Financing Profile
Recent Comparable Deals
| Closed | State | Loan | Implied deal | Jobs | Franchise |
|---|---|---|---|---|---|
| Nov 2025 | TN | $1.2M | $1.4M | 6 | — |
| Nov 2025 | CA | $1.7M | $2.0M | 14 | — |
| Nov 2025 | NC | $1.2M | $1.4M | 25 | — |
| Jun 2025 | FL | $1.4M | $1.6M | 14 | — |
| May 2025 | CA | $539K | $634K | 14 | — |
| Mar 2025 | MO | $5.0M | $5.9M | 32 | — |
| Mar 2025 | VA | $4.8M | $5.6M | 11 | — |
| Feb 2025 | NH | $640K | $753K | 6 | — |
| Sep 2024 | TX | $1.5M | $1.8M | 51 | — |
| Sep 2024 | AZ | $270K | $318K | 4 | — |
Source: SBA 7(a) FOIA dataset, filtered to acquisitions (loans where business age is "Change of Ownership"). Implied deal size assumes an 85% loan-to-purchase ratio, a common SBA change-of-ownership structure. Charge-off rate shown only when 10+ loans have resolved (paid in full or charged off). Interest rates reflect last 24 months only. Actual deal values vary with equity injections, seller financing, and working capital terms.
Pros
- +24/7 demand — vehicles break down constantly
- +Multiple revenue streams (motor clubs, police, private)
- +Impound and storage fees add passive income
- +High barriers to entry once on police rotation lists
Cons
- -24/7 on-call requirement is demanding on lifestyle
- -Tow trucks are expensive ($50K-$150K each)
- -Insurance costs are very high due to liability exposure
Best For
Operators who thrive in 24/7 businesses and can manage dispatch logistics
Operating Costs
Major costs are truck payments and maintenance, fuel, high insurance premiums, dispatcher wages, and driver labor.
SBA Financing Estimator
Adjust the deal — see if it cash flows after debt service
Estimates only. Excludes owner compensation, capex, working capital draws, and taxes. Margin assumes average occupancy and volume. Actual SBA terms vary by lender and borrower profile.
Where to Buy
Find towing companies for sale across the US
Browse towing business acquisition opportunities
Acquisition Score
Scores margin (30), entry multiple (25), SBA market depth (20), category risk (15), and deal momentum (10). Higher = better acquisition candidate.
Quick Facts
- Category
- service
- Difficulty
- 3/5
- Buy price
- $800K–$1.2M
Buyer's Toolkit
Essential tools to get started
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Largest business-for-sale marketplace in the US
SBA loans and business acquisition financing — get funded fast
ROBS financing — use retirement funds to buy a business tax-free
Bookkeeping for small business owners — hands-off financials
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