🔦Towing Services

🔦 Welcome to this week’s edition of Sector Spotlight!

Every Tuesday we highlight an under-the-radar and often underappreciated industry. This week we take a closer look at the Towing Services sector.

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-Harry & Carter

🔎 We identified 357 Towing Service companies* as strong, potential targets. Click here to access this list.
*These companies have verified contact, location, and financial data. We limit the number of downloads for each company list (so we don’t overwhelm the sellers).
Revenue between $1.5M - $20M

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Towing Services

🏢 Size of Industry: $12.52B
📈 Industry Projected Growth: 1.5% (CAGR)
💰 Average Profit Margin: 9.5%

🔑 Key Highlights

  • Stable Demand: The increase in the number of vehicles on the road has led to a higher likelihood of car accidents and breakdowns, increasing the demand for towing services and roadside assistance.

  • Diverse Customer Base: Towing companies serve multiple markets, including municipal and state governments, businesses, and individuals, providing a diverse customer base that can offer stability.

  • Regulatory Compliance: While there are regulations governing the industry, complying with federal, state, and municipal laws is essential for operating legally. However, these regulations also act as a barrier to entry, reducing competition for established players.

  • Fragmented Market: The industry is fragmented, with many small, locally focused owner-operators dominating the market. This fragmentation can present opportunities for growth and consolidation through strategic acquisitions or partnerships.

  • Essential Service: Towing services are essential for removing vehicles that are parked illegally or in violation of regulations, ensuring compliance and safety for businesses and governments.

📋 Industry breakdown

Commercial & Passenger Towing: Serves as the primary function within the industry, focusing on the removal of stationary vehicles or those in violation of local regulations. Requests for assistance typically originate from law enforcement, commercial fleets, businesses, or individuals, prompting the provision of towing services.

Roadside Assistance: Larger industry players have expanded their service offerings to include roadside service aiming to boost revenue, profitability, and the likelihood of securing contracts with local governments. Roadside assistance encompasses tasks such as tire changes, battery recharges or replacements, refueling at nearby stations, and minor vehicle repairs. Often, roadside assistance proves to be a more cost-effective solution compared to towing for minor vehicle issues.

 📱 Relevant listen

Thanks for reading and don’t hesitate to reach out! - Harry & Carter

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This publication is a newsletter only and the information provided herein is the opinion of our editors and writers only. Any transaction or opportunity of any kind is provided for information only. Acquisition Alert does not verify nor confirm information. Acquisition Alert is not making any offer to readers to participate in any transaction or opportunity described herein.