Towing Business Valuation
Towing Business Valuation Calculator & Exit Planning Built for Operators
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Most Towing Company Owners Have No Idea What Their Business is Actually Worth
Current Towing Services Valuation Multiples (2026)
Towing business valuations have risen as consolidators target fragmented markets. Here's what companies sell for:
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What Actually Drives Towing Business Value
Your truck count matters, but buyers evaluate these specific factors that most towing operators overlook:
Contract Base
Multiple Motor Clubs + PD
AAA contracts, other motor club agreements, and police rotation positions are the foundation of a valuable towing business. These provide steady, predictable call volume that doesn't depend on you answering a dispatch board at 2am. Buyers want to see diversified contracts—not dependence on a single motor club that could drop you. The more contracts, the more valuable your operation.
No contracts = dispatch-dependent
Fleet Condition
< 7 Years Average Age
Your trucks are your biggest asset—and potentially your biggest liability. Well-maintained, newer trucks (under 7 years, under 150K miles) reduce buyer anxiety about post-acquisition capital expenditures. Old, high-mileage equipment gets deducted from offers, sometimes dollar-for-dollar. Keep detailed maintenance records and be honest about condition—buyers will do their due diligence.
Old fleet = buyer discount
Service Mix
Towing + Recovery + Transport
Light-duty towing is competitive and commoditized. Companies offering medium-duty, heavy-duty, and specialized recovery services command significantly higher multiples. Transport services (dealership moves, equipment hauling) add another revenue stream. The more capabilities you have, the more customers you can serve—and the more valuable you become to consolidators building regional networks.
Light-duty only = limited market
Driver Team
CDL Drivers on Staff
Trained CDL drivers who know your territory and stay with the company are valuable assets. High turnover means constant training costs, inconsistent service quality, and 24/7 coverage nightmares. If you're the only driver—or you're still running calls yourself—buyers see key person risk that reduces your value. Build a team that operates without you in the truck.
Owner-only driving = key person risk
Geography
Exclusive Territory Rights
Exclusive contracts for specific highways, municipalities, or designated response areas provide competitive protection that buyers value highly. If you're the only game in town for certain calls, you have pricing power and predictable volume. Open competition territories face margin pressure as operators underbid each other. Document your territory rights carefully—they're often more valuable than your trucks.
Open competition = margin pressure
Storage Facility
Owned Impound Lot
An owned storage facility adds significant value on multiple levels. It generates ongoing impound and storage revenue, eliminates lease risk, and can be sold with the business or structured as a separate transaction. Buyers love the real estate component—it's a tangible asset that appreciates. If you're leasing your lot, you're missing a major value driver and facing rent increases that eat into margins.
No storage = lost revenue stream
How to Value a Towing Business
The U.S. towing industry includes approximately 50,000 towing companies generating over $12 billion in annual revenue. Towing businesses provide emergency roadside service, accident recovery, private property impound, and heavy-duty commercial towing.
Seller's Discretionary Earnings (SDE) is the standard valuation method. Towing businesses typically sell for 2.0x to 3.5x SDE. Companies with municipal/police rotation contracts, motor club agreements, and a fleet of well-maintained tow trucks command the higher end.
Revenue multiples generally range from 0.25x to 0.50x annual revenue. Companies with established rotation contracts and impound lot storage revenue achieve the upper end.
The unique valuation factor for towing is the rotation contract portfolio and impound lot ownership. Police rotation contracts — where the towing company is on a rotating list for accident and violation towing — provide steady call volume. Motor club agreements (AAA, Agero, Coach-Net) provide roadside assistance dispatches. Companies that own their impound storage lots capture daily storage fees that can be more profitable than the tow itself. Fleet condition (light-duty, medium-duty, heavy-duty, flatbed) and geographic coverage area directly determine the types of calls a company can accept.
The towing industry has seen moderate consolidation and increasing regulation. Companies with diversified contract portfolios and professional operations are best positioned. Use our free calculator above to get your instant estimate, then track your value monthly with YourExitValue.
Frequently Asked Questions
What multiple do towing businesses sell for?
Most towing businesses sell for 2.0x – 3.5x SDE. Companies with strong contract bases, modern fleets, and heavy-duty capabilities command the higher end. Owner-operator businesses with old trucks fall lower.
How do motor club contracts affect towing business value?
Significantly. AAA and motor club contracts provide predictable call volume that transfers to new owners. A company with 50%+ revenue from contracts will sell for notably higher multiples than one dependent on dispatch boards.
Does fleet age affect my towing company valuation?
Yes. Buyers assess equipment condition carefully. Trucks under 7 years old with good maintenance records are assets. Old, high-mileage trucks get deducted from offers—sometimes dollar-for-dollar.
Who buys towing companies?
Regional consolidators are most active, building networks across metro areas. You'll also see individual buyers, existing towing companies expanding territory, and PE-backed platforms in larger markets.
Should I add heavy-duty towing before selling?
If capital allows, heavy-duty and recovery capabilities command premium pricing and attract larger buyers. But it requires significant truck investment and trained operators—make sure the ROI works.
How does an owned impound lot affect value?
Owned storage facilities add significant value. They generate ongoing impound revenue, eliminate lease risk, and can be sold with the business or structured separately. Buyers love the real estate component.