What Is My Towing Company Worth?

Towing companies with police rotation contracts, motor club agreements, and diversified revenue streams are attractive acquisition targets. The combination of essential service demand and barriers to entry (licensing, equipment, permits) creates real business value.

Typical Valuation Ranges

Most towing companies sell for 2.5x to 4x SDE.

Factors that push toward the higher end:

• Police rotation or municipal contracts
• Motor club agreements (AAA, insurance companies)
• Diversified services (towing, recovery, storage, transport)
• Modern, well-maintained fleet
• Storage lot generating impound revenue
• Management team handling dispatch and operations

Factors that push toward the lower end:

• Owner drives the primary truck
• No rotation contracts (cash-call only)
• Aging fleet needing replacement
• No storage lot
• Single service type

What Makes Towing Companies Valuable

Police rotation contracts are the crown jewel. They provide consistent, predictable call volume and are difficult to obtain — typically requiring competitive bidding, insurance minimums, and compliance requirements. Once you're on rotation, the barrier to losing that position is high.

Storage revenue from impounded vehicles can be a significant profit center with minimal labor cost.

Essential service demand — accidents happen regardless of the economy.

Key Metrics Buyers Evaluate

Revenue per truck: Strong companies generate $200K–$350K+ per truck annually.

Contract revenue percentage: 50%+ from rotation, motor club, and commercial contracts signals predictability.

Fleet age and condition: Tow trucks are expensive ($80K–$200K+ each). Fleet condition directly impacts value.

Storage lot capacity and revenue: Lot income with impound fees and storage charges adds high-margin revenue.

How to Increase Your Value

1. Secure rotation contracts. Apply for police and municipal rotations in every jurisdiction you serve.
2. Add storage. An impound or storage lot creates passive revenue from existing tow volume.
3. Maintain your fleet. Modern, well-maintained trucks reduce downtime and signal professionalism.
4. Diversify services. Heavy recovery, long-distance transport, and roadside assistance expand your revenue base.
5. Build a team. Hire dispatchers and drivers so the business runs without you in the truck.

Browse the valuation multiples guide for industry data, or schedule a free call for a confidential valuation.