Towing & Recovery, Auto Repairs in Northern Ontario

Ontario, CANADA

Business Summary: Generating over $2M in annual revenue, with $1M virtually guaranteed from roadside services, this Ontario-based business has been established for over 20 years! Providing towing and recovery services for roadside companies, law enforcement agencies, municipal fleets, public vehicles, emergency vehicles, and local individuals, they also provide expert automotive repairs including brakes, steering, engine diagnostics, and heavy truck repairs. 72% of revenue is from towing services and 28% is from auto repair services. The 18-person team includes 8 full-time drivers, 3 mechanics, 3 apprentices, an office manager, a dispatcher, a part-time bookkeeper, and a payroll clerk with most employees having 6+ years tenure. The current owner commissions for towing jobs and handles high-level management functions, he is not doing any of the labor or driving. The business is well positioned to dominate the market with opportunities to expand the towing business and expand geographically into the Soo area. There is over $500K worth of equipment with $192K capex that would be included in the sale. The roadside and auto repair divisions have created niche segments that help protect the work and a large moat has been created by tying up the larger roadside contracts within the district. This makes it hard for other companies to get a foot hold. In addition, the garage has the only heavy mechanic shop within 55 km and they have multiple light and heavy licenses. Most of their revenue comes from long-term contracts with roadside service companies and referrals from local law enforcement agencies. The largest towing customer operates on negotiated three-year contracts and they have been a loyal customer for over 21 years. Their website and word-of-mouth advertising from loyal and long-standing clientele help them obtain new clients on a regular basis.
Year Business was Established: 1998
Number of Employees: 17
Facilities / Terms of Lease: Site 1: 3,280 sq. ft.; Site 2: 1,960 sq. ft.
Potential Growth/Expansion: Expand business by adding another office
Owner willing to finance: 20% Seller Financing: $525,000
Owner willing to train: 6 - 12 months
Reason for selling: Pursuing other interests