Towing Company Valuation and What a Towing Business for Sale Is Worth
Enter the company's revenue and owner earnings and read a range benchmarked to what tow truck businesses actually closed at, whether you are setting an asking price or checking a listing before you make an offer.
Estimated business value
Method breakdown
What moves this number
Estimate, not a certified appraisal. Your figures are not stored.
US towing companies sold across 2021 to 2025 at a median of 3.16x seller discretionary earnings, or 0.85x annual revenue, with a lower quartile of 2.06x and an upper quartile of 3.87x. The median company sold for $1,350,000, on median revenue of $1,332,354 and median owner earnings of $428,547, after a median 226 days on the market.
Unlike most small businesses we price, the median towing deal has room under the bank's ceiling. An SBA buyer drawing $80,000 a year can finance about $1,913,411 on the median earnings, 41.7 percent above the median sale. The trucks use that room up: a yearly fleet reserve of about $102,631 brings the supportable price down to the median sale. This is a benchmark and an estimator, not a certified appraisal.
Median towing company sale price by year
BizBuySell yearly medians, rounded on the bars; exact figures are in the table below. The 2021 spike came from larger towing operations entering the market that year; median revenue at those sales was $2,696,331. From 2023 the price per dollar of earnings fell from 3.16x to 2.55x while prices held. Effective multiples computed here.
Closed transactions
01What towing companies actually sold for
These are sale prices, not asking prices, from towing companies sold across the five years 2021 to 2025. The source describes them as light, medium and heavy-duty towing providers, often also offering roadside assistance, vehicle recovery, law enforcement towing, impound lot operations and storage, with some repossession and fleet transport work. If you have been pricing from a listing site's instant estimate, our comparison of BizBuySell valuation alternatives explains what those tools leave out.
Median sale price
$1,350,000
What the middle towing company actually closed at, 2021 to 2025
Median asking price
$1,240,000
What the same sold companies were listed at
Median revenue
$1,332,354
Annual sales of the middle company sold
Median owner earnings (SDE)
$428,547
Seller discretionary earnings, a 32.2 percent owner margin
| Towing companies sold, 2021 to 2025 | Lower quartile | Median | Average | Upper quartile |
|---|---|---|---|---|
| Seller discretionary earnings multiple | 2.06x | 3.16x | 3.28x | 3.87x |
| Revenue multiple | 0.61x | 0.85x | 0.92x | 1.14x |
| Revenue | $807,474 | $1,332,354 | $1,978,483 | $2,600,000 |
| Owner earnings (SDE) | $204,032 | $428,547 | $544,842 | $750,000 |
| Towing companies listed for sale now | Lower quartile | Median | Average | Upper quartile |
|---|---|---|---|---|
| Seller discretionary earnings multiple | 2.84x | 4.61x | 6.42x | 5.85x |
| Revenue multiple | 0.85x | 1.25x | 1.68x | 1.78x |
| Revenue | $435,866 | $854,723 | $1,775,567 | $1,978,895 |
| Owner earnings (SDE) | $151,000 | $218,203 | $373,797 | $366,308 |
Source: BizBuySell towing company business valuation benchmarks, businesses reported sold on the platform 2021 to 2025 and recent listings, read October 2026. In two listed rows the published average sits above the upper quartile, which happens when a few very large companies pull the mean. Benchmarks, not quotes.
Three things stand out. First, the towing companies for sale today are much smaller than the ones that sold, and ask far more per dollar: the median listing earns $218,203, 49.1 percent less than the median sold company, on revenue 35.8 percent lower, yet asks 4.61x against a 3.16x sold median. Second, the median sale price of $1,350,000 sits 8.9 percent above the median asking price of $1,240,000. That is not buyers paying over ask; the two medians come from different companies, and the average sale to ask ratio is 0.98. Third, multiplying medians lands almost exactly on the median sale: $428,547 at 3.16x is $1,354,209, 0.3 percent above it. If you are working out how to calculate SDE for the company in front of you, do that first, then find its row in section 05.
| Year sold | Median sale | Median ask | Sale to ask | Average SDE multiple | Average revenue multiple | Median revenue | Median SDE | Owner margin | Median sale over median SDE |
|---|---|---|---|---|---|---|---|---|---|
| 2021 | $2,325,000 | $2,350,000 | 0.99 | 4.36x | 0.81x | $2,696,331 | $503,250 | 18.7% | 4.62x |
| 2022 | $754,500 | $754,500 | 1.00 | 2.83x | 0.88x | $939,275 | $274,000 | 29.2% | 2.75x |
| 2023 | $1,250,000 | $995,000 | 1.08 | 3.34x | 0.90x | $1,112,639 | $395,847 | 35.6% | 3.16x |
| 2024 | $1,500,000 | $1,500,000 | 0.88 | 2.87x | 1.02x | $1,332,354 | $576,168 | 43.2% | 2.60x |
| 2025 | $1,360,000 | $1,335,000 | 0.93 | 3.44x | 0.95x | $2,078,503 | $534,345 | 25.7% | 2.55x |
Source: BizBuySell yearly medians and averages for towing companies sold, as published. The last column is computed here.
Read the 2024 and 2025 rows together. In 2024 the median company earned $576,168 on $1,332,354 of revenue, a 43.2 percent owner margin, and sold for $1,500,000, only 2.60 times those earnings. In 2025 margins came back to 25.7 percent and the median sold for $1,360,000 at 2.55x. Buyers did not pay up for the record margins of 2024, which is the right instinct: a margin that climbs 14 points in two years and then falls 17.5 points in one is not one to capitalize. Each point of margin on $1,332,354 of revenue is $13,324 of earnings, about $42,102 of value at the median multiple, so check the seller's margin against at least three years before you accept the earnings.
Our calculation
02The median towing company finances with room to spare
Most towing companies at this size go to an operator with an SBA 7(a) loan, often someone who already drives or dispatches for a tow company, or to a nearby operator adding trucks and territory. What a financed buyer can borrow sets a practical ceiling. The table runs a loan at 10 years, 10.5 percent, 1.25x debt service coverage and a 10 percent injection against the median $428,547 of owner earnings, at each level of salary the buyer takes out. Everything in it is computed here, not quoted.
SBA-supportable price at an $80,000 draw, against the median sale
Scale $0 to $2,200,000
$350,000
The SBA line above which the lender must order an independent valuation.
$1,350,000
What the median towing company sold for.
$1,638,927
What the earnings support with a $50,000 yearly fleet reserve.
$1,913,411
What $428,547 supports at an $80,000 draw, with no reserve.
| Owner draw the buyer takes | Left for debt service | Supportable purchase price | As a multiple of $428,547 SDE |
|---|---|---|---|
| $0 (buyer takes no salary) | $428,547 | $2,352,586 | 5.49x |
| $60,000 | $368,547 | $2,023,205 | 4.72x |
| $80,000 | $348,547 | $1,913,411 | 4.46x |
| $100,000 | $328,547 | $1,803,618 | 4.21x |
| $150,000 | $278,547 | $1,529,134 | 3.57x |
Computed here. Annual loan constant 0.16192 for a 10 year loan at 10.5 percent, so the supportable price is (SDE minus draw) divided by 1.25, divided by 0.16192, divided by 0.90. Illustrative arithmetic, not a loan offer or a credit decision.
Work it backwards and a financed buyer could take $182,631 a year and still pay exactly the median price, or needs only $325,916 of earnings to pay $1,350,000 and draw $80,000. That is a wide margin by main street standards; in sectors such as car washes, liquor stores, laundromats and pest control the median price already sits above what the loan reaches. It also explains the 0.98 average sale to ask ratio: when the bank can fund the price, sellers do not have to come down much. The catch is the equipment, in section 03.
Cash to close on the median company
$166,894
A $1,350,000 purchase at 10 percent down is a $135,000 injection and a $1,215,000 loan, with a 3.5 percent SBA guaranty fee of $31,894 on the $911,250 guaranteed portion. Annual debt service is about $196,733, covered 2.18 times by $428,547 of earnings before the owner is paid, leaving $231,814, or $151,814 after an $80,000 salary. Truck replacement, the independent valuation and legal fees come out of that.
The lower quartile company
$680,896
A company earning $204,032 is worth $420,306 at the lower quartile 2.06x and $644,741 at the median 3.16x. A buyer drawing $80,000 can finance about $680,896 on those earnings, above both, before any fleet reserve. Small towing companies are usually limited by the trucks they own, not by the loan, so the reserve matters even more here.
What makes towing companies different
03The trucks use up the headroom the bank leaves you
Seller discretionary earnings add depreciation back, which is right for a business whose assets last. A tow company runs its trucks around the clock, on highway shoulders, in snow and at accident scenes, and wreckers, rollbacks and wheel lifts all have to be replaced. That money comes out of the same earnings that pay the loan. A buyer who prices on SDE alone pays for the trucks twice.
SBA-supportable price at an $80,000 draw, by yearly fleet reserve
Computed here on the median $428,547 of earnings. The dark tick is the $1,350,000 median sale. Each $50,000 of yearly reserve removes $274,484 of supportable price. At about $102,631 a year the loan reaches exactly the median sale.
Set the reserve from the fleet list
Ask for every truck with year, mileage, engine hours, body type and the loan or lease balance on each. Get current replacement quotes for the units you will need to replace, divide by the years each has left, and compare the total with the depreciation the seller added back. Your lender will do something similar.
Heavy-duty units change the math
A company with heavy wreckers or a rotator carries more equipment value and a larger replacement bill than a light-duty fleet, and it can bid on commercial and highway recovery work the smaller fleet cannot. Price the heavy units on their own schedule.
The yard can trigger an SBA environmental review
Towing is NAICS 488410, part of support activities for transportation. SBA SOP 50 10 8.1 lists NAICS 488 in Appendix 6 as environmentally sensitive "if fuel tanks are present or if repairs or maintenance is performed on site," and when a property matches that list the investigation must begin with a Phase I, regardless of the amount of the loan. A tow yard with a fuel tank or a shop bay usually qualifies. Budget the time and the report into the closing.
The valuation the lender orders
Under the same SOP, effective October 1, 2026, a business purchase above $350,000 needs a valuation from a qualified source requested by the lender, and the debt cannot exceed it; any part of the price above the appraised value is paid with equity. Nearly every towing company sold is above that line. A quality of earnings report is added once the price reaches $3 million, and an upper quartile company at the upper quartile multiple, $2,902,500, sits just under it.
For a buyer, the first questions on any towing listing are how old the trucks are, who owns the lot and which call sources survive the sale. For a seller, a clean fleet list with titles, a long lot lease or a deeded lot, and written confirmation from each motor club and agency make the price easier to defend. Our guide to business valuation for an SBA loan lists what the lender will ask for.
Sources: SBA SOP 50 10 8.1, effective October 1, 2026, Section A chapter 5 (environmental investigation steps), Appendix 6 (page 322) and Appendix 15 (changes of ownership, valuation and quality of earnings). A summary for pricing, not legal advice.
Our calculation
04What the company is worth once the owner stops taking calls
Seller discretionary earnings include the owner's pay, and in a towing company the owner often still runs night calls, answers dispatch and handles the agencies. An investor buyer has to pay someone for that. The rows below replace the owner's labor with hires at the Bureau of Labor Statistics national median wage for May 2025, plus employer FICA.
The same $1,350,000 price
3.15x
to an owner who runs calls
3.69x
with a CDL driver hired
4.47x
with two drivers hired
| Who does the owner work | Earnings left | Price as a multiple | SBA, no draw | SBA, $80,000 draw |
|---|---|---|---|---|
| Owner runs calls and dispatch, no hire | $428,547 | 3.15x | $2,352,586 | $1,913,411 |
| A light-duty operator hired ($48,292) | $380,255 | 3.55x | $2,087,479 | $1,648,305 |
| A CDL wrecker driver hired ($63,126) | $365,421 | 3.69x | $2,006,044 | $1,566,870 |
| Two CDL drivers hired ($126,252) | $302,295 | 4.47x | $1,659,503 | $1,220,329 |
Computed here. BLS Occupational Employment and Wage Statistics, national estimates for May 2025: heavy and tractor-trailer truck drivers (SOC 53-3032, the occupation that covers tow truck drivers who need a commercial license), median $58,640 a year, 2,062,040 jobs; light truck drivers (SOC 53-3033), median $44,860, 983,300 jobs. Plus 7.65 percent employer FICA. On-call pay and overtime usually push the real cost higher.
To a buyer who will run the calls and dispatch the way the seller did, $1,350,000 is 3.15x earnings, right on the median multiple. With one CDL driver hired at the median wage it is 3.69x, and with two it is 4.47x, above the 3.87x upper quartile. Even then the loan still reaches $1,220,329 at an $80,000 draw, so an investor who hires out the work can finance most of the median price. The buyer who can usually pay the most is a nearby tow operator, who adds the trucks, accounts and storage capacity to an existing dispatch and lot without hiring a second manager.
Find your row
05What a towing company at your earnings is worth
Each row takes an earnings level from the sold record and prices it at the lower quartile, median and upper quartile multiple, next to what an SBA buyer drawing $80,000 a year could finance before any fleet reserve.
| Owner earnings (SDE) | At 2.06x | At 3.16x | At 3.87x | SBA-supportable, $80,000 draw |
|---|---|---|---|---|
| $204,032 (lower quartile sold) | $420,306 | $644,741 | $789,604 | $680,896 |
| $274,000 (2022 median) | $564,440 | $865,840 | $1,060,380 | $1,064,998 |
| $428,547 (median sold) | $882,807 | $1,354,209 | $1,658,477 | $1,913,411 |
| $534,345 (2025 median) | $1,100,751 | $1,688,530 | $2,067,915 | $2,494,208 |
| $750,000 (upper quartile sold) | $1,545,000 | $2,370,000 | $2,902,500 | $3,678,085 |
Computed here. SBA column on the same terms as section 02, before any fleet reserve. Illustrative arithmetic, not a loan offer.
On every row the loan reaches at least the median multiple price before any reserve, and from the median earnings up it reaches beyond the upper quartile price. At the lower quartile it covers the 3.16x price by only $36,155, and at the 2022 median earnings it reaches just $4,618 past the upper quartile price, so a modest reserve settles those deals. The financing rarely limits a towing deal; the equipment and the call sources do. If your numbers sit between rows, the estimator at the top of the page will place them.
Value drivers
06What moves a towing company between the quartiles
The distance between the lower and upper quartile multiple is 2.06x to 3.87x, which on $428,547 of earnings is the difference between $882,807 and $1,658,477. The chart sets the sold range next to what listings ask and how the multiple moved from year to year, all on one scale.
Towing multiples on one scale
0x to 7x seller discretionary earnings
Sold, middle half (SDE)
2.06x to 3.87x SDE
Listed today, middle half (SDE)
2.84x to 5.85x SDE
Average sold SDE multiple, by year
2.83x (2022) to 4.36x (2021)
Median sale over median SDE, by year
2.55x (2025) to 4.62x (2021)
BizBuySell towing benchmarks, 2021 to 2025. The listed band is what companies for sale ask; the yearly bands show the spread of the published average multiple and of the median sale over median earnings, computed here.
Where the calls come from
Police and municipal rotation work, motor club dispatch, private property impounds and commercial accounts with dealers, body shops and fleets all pay differently. Rotation and motor club work is steady, but it belongs to the program, not the company. Get revenue by source for three years and price each stream on whether it stays after the sale.
Rotation lists that end at the sale
Many law enforcement towing agreements do not survive a change of owner. The Unified Police Department of Greater Salt Lake rotation agreement for 2025 to 2026, for example, says a company sold during the rotation year is terminated from the rotation, the agreement is non-transferable, and the new owner may apply for the next year. Read the actual agreement for every agency before you price that revenue.
The impound lot and storage
Storage fees on impounded vehicles can be a large and profitable line, and they depend on the lot. Confirm whether the lot is owned or leased, the lease term and assignment clause, any license for the storage facility, and the regulated rates. A lot lease that ends a year after closing puts the storage revenue at risk.
Fleet mix and age
Light-duty wheel lifts, rollbacks, medium-duty units and heavy wreckers do different work at different rates. A heavy-duty recovery truck opens commercial accounts a light-duty fleet cannot serve. Ask for every unit with year, mileage, hours and loan balance, and price a replacement schedule for the trucks near the end of their life.
Sales volume
BizBuySell states that a towing company generating $2.6 million in revenue may command an earnings multiple around 3.87, while a smaller tow truck company with sales below $800,000 may trade near 2.05. Those thresholds sit on the sold revenue quartiles of $807,474 and $2,600,000.
Drivers, licenses and the USDOT number
Experienced CDL drivers who stay after the sale are worth more than a new truck. Many states and cities license tow companies, operators and storage lots, and some licenses are reissued to a new owner. For trucks in interstate commerce, FMCSA guidance says a USDOT number cannot be sold or transferred, so an asset purchase usually means a new number.
Against other automotive businesses
07Towing companies against nine other automotive businesses
Towing sits fifth of the ten automotive categories on average earnings multiple, 3.28x, but it has the second highest owner margin, 32.2 percent, after car washes, and the second highest median owner earnings, $428,547, after truck stops. The closest comparison is trucking: a trucking company earns 6.7 percent less at the median and sells for 15.7 percent less, $1,137,500, on 47 percent more revenue. Against an auto repair shop, a towing company earns 2.35 times as much and sells for 3.29 times the price. Our trucking company valuation and auto repair shop valuation pages price the businesses next door, and SDE multiples by industry shows the whole market.
| Automotive category | Median revenue | Average revenue multiple | Median SDE | Average SDE multiple | Owner margin | Median sale | Median ask | Sale to ask |
|---|---|---|---|---|---|---|---|---|
| Car washes | $555,000 | 2.01x | $191,451 | 4.99x | 34.5% | $800,000 | $899,500 | 0.91 |
| Junk and salvage yards | $1,141,763 | 1.03x | $251,000 | 3.85x | 22.0% | $885,500 | $960,000 | 0.98 |
| Gas stations | $1,998,900 | 0.50x | $185,632 | 3.76x | 9.3% | $615,000 | $600,000 | 1.00 |
| Truck stops | $6,111,912 | 0.71x | $1,214,942 | 3.69x | 19.9% | $5,250,000 | $4,715,000 | 1.13 |
| Towing companies | $1,332,354 | 0.92x | $428,547 | 3.28x | 32.2% | $1,350,000 | $1,240,000 | 0.98 |
| Equipment rental and dealers | $1,000,069 | 0.89x | $294,000 | 3.15x | 29.4% | $847,000 | $899,500 | 0.98 |
| Trucking companies | $1,954,881 | 0.65x | $400,000 | 3.00x | 20.5% | $1,137,500 | $1,200,000 | 0.93 |
| Car dealerships | $3,500,000 | 0.41x | $383,000 | 2.90x | 10.9% | $975,000 | $995,000 | 1.00 |
| Marine and boat service | $1,000,000 | 0.69x | $223,000 | 2.83x | 22.3% | $475,000 | $525,000 | 0.94 |
| Auto repair and service shops | $819,431 | 0.64x | $182,133 | 2.82x | 22.2% | $410,000 | $450,000 | 0.97 |
Source: BizBuySell automotive service sector comparison, 2021 to 2025, as published on the towing company page. Owner margin (median SDE over median revenue) computed here. Ordered by average SDE multiple.
Methods
08The five ways a towing company gets valued
You will meet most of them in one sale. A lender counts earnings after the owner's salary, an equipment appraiser counts the trucks, a real estate appraiser counts the lot, a consolidator counts EBITDA, and everyone argues about the fleet reserve at the end. Knowing which one the other side is using is most of the negotiation.
Seller discretionary earnings multiple
The primary method for an owner-run towing company and the one an SBA lender underwrites. Normalized SDE times a multiple, where half of all sales landed between 2.06x and 3.87x. Normalize first: the owner taking night calls, a spouse on payroll, a personal truck run through the books, and one-time costs such as a rollover claim or an engine rebuild all come back into earnings.
Revenue multiple
Towing companies sold at a median 0.85x revenue and an average of 0.92x, close to the old rule of thumb of about one times sales. Use it only as a cross-check. A motor club heavy company and a police rotation company with its own impound lot can bill the same and earn very different amounts, and owner margins at the yearly medians ran from 18.7 to 43.2 percent.
EBITDA multiple
Once a manager runs dispatch and the owner no longer drives, buyers count EBITDA after a market wage for every role. Larger regional operators and consolidators price this way, and the number they quote is not comparable with an SDE multiple on a main street sale.
Asset value of the fleet and lot
Rollbacks, wreckers, wheel lifts and any heavy-duty unit set a floor under the price, and an owned impound lot can be worth more than the operating business. Ask for an equipment appraisal on anything financed and a separate real estate appraisal if the lot is part of the deal.
Replacement-adjusted earnings
Not a separate method, but the step most towing deals need. SDE adds depreciation back, and the trucks still have to be replaced. Subtract a yearly fleet reserve before you apply a multiple or size a loan. Section 03 shows what that does to the price.
Questions
Towing company valuation questions, answered against the sold record
How much is a towing company worth?
The median US towing company sold between 2021 and 2025 went for $1,350,000, on median revenue of $1,332,354 and median owner earnings of $428,547. Half of all sales landed between 2.06x and 3.87x owner earnings, which on $428,547 is $882,807 to $1,658,477. Size, the share of rotation and motor club work, and fleet age decide where a company lands.
How do you value a towing business?
Start from normalized seller discretionary earnings, then subtract a yearly reserve for replacing trucks, because SDE adds depreciation back. Apply a multiple between about 2.06x and 3.87x, higher for larger companies with diverse call sources and newer equipment. Check the result against the fleet and lot value and against what an SBA lender will finance.
What is the multiple for a towing company?
Towing companies sold at a median 3.16 times seller discretionary earnings and an average of 3.28x across 2021 to 2025, with a lower quartile of 2.06x and an upper quartile of 3.87x. On revenue the median was 0.85x and the average 0.92x. Companies listed for sale today ask a median 4.61x, well above what sold.
How much does a towing business make?
The median towing company sold between 2021 and 2025 made $1,332,354 in revenue and $428,547 in owner earnings, a 32.2 percent owner margin. The lower quartile earned $204,032 and the upper quartile $750,000. The 2025 median was $534,345 of earnings on $2,078,503 of sales, a 25.7 percent margin.
Is a towing business profitable?
On the sold record, yes. Towing has the second highest owner margin of the ten automotive categories on the comparison, 32.2 percent, behind only car washes, and the second highest median owner earnings after truck stops. Those earnings include the owner running calls and dispatch, and they come before the trucks are replaced.
How much does it cost to buy a towing company?
The median towing company sold for $1,350,000. Financed with an SBA 7(a) loan at 10 percent down, that is a $135,000 injection plus a $31,894 guaranty fee, about $166,894 of cash at closing. Smaller companies at the lower quartile of earnings sell for around $420,306 at a 2.06x multiple.
Can you get an SBA loan to buy a towing company?
Usually, yes. At 10 years, 10.5 percent, 1.25x coverage and 10 percent down, the median $428,547 of owner earnings supports about $1,913,411 if the buyer draws $80,000 a year, 41.7 percent above the median sale. A yearly fleet reserve of about $102,631 uses up all of that headroom, so the reserve is the real question.
How long does it take to sell a towing company?
BizBuySell reports a median of 226 days on the market for towing companies that sold, about seven and a half months from listing to an accepted deal. Lender valuation, equipment appraisal, any environmental review of the yard and new rotation or license applications usually add one to three months before closing.
How much does a business valuation cost for a towing company?
A formal business valuation commonly runs $1,500 to $8,000 for a calculation engagement and $5,000 to $15,000 for a full conclusion of value. On a $1,350,000 towing company that is 0.11 to 0.59 percent of the price for a calculation and 0.37 to 1.11 percent for a full report. An equipment appraisal of the fleet is often ordered separately.
Asked another way
What tow company owners and buyers ask when they are deciding
These come up once the numbers are understood and the decision is the real problem, whether that is making an offer, keeping the rotation work or settling what happens to the lot. Answered against the same sold record.
Is a towing company listed at 5 times earnings a fair price?
Rarely. Sold towing companies traded at a median 3.16x and an upper quartile of 3.87x, while listings ask a median 4.61x. A 5x asking price sits above the sold upper quartile, which BizBuySell ties to companies with about $2.6 million of revenue. Unless the lot or the fleet is worth a large part of the price on its own, expect to negotiate down.
Does the police rotation list transfer when you buy a towing company?
Often it does not. Rotation placement is usually a privilege granted by the agency, not a contract the company owns, and some agreements end when the company is sold. Ask each agency in writing before closing, and price rotation revenue as at risk until the new owner is approved.
Should I buy the impound lot with the towing business?
If the storage revenue matters and the seller owns the lot, buying or leasing it long term protects the business. SBA 7(a) loans can finance owner-occupied real estate with the business, and the real estate gets its own appraisal. If fuel tanks sit on the lot or repairs are done there, the SBA environmental rules call for a Phase I.
Is buying a towing company a good investment?
For an operator who can run 24 hour dispatch, keep drivers and manage the agency relationships, the numbers are strong. The median company sold for $1,350,000 and returns about 31.7 percent of the price in owner earnings a year before debt and truck replacement. The risks are rotation work that does not transfer, fleet age, insurance cost and driver turnover.
Do I need a formal appraisal or is an estimate enough?
An estimate is enough to set an asking range or decide whether a listing deserves an offer. Under SBA rules effective October 1, 2026, a purchase above $350,000 needs an independent valuation ordered by the lender, and almost every towing company sold is above that line. A quality of earnings report is added at a $3 million price.
Benchmarks behind the estimate
Find out where in the range a towing company sits
Enter revenue and owner earnings, for your own company or for a listing you are considering, and read a value range against real towing company sales. An estimate in a few minutes, before you pay a broker or an appraiser.