Has anyone considered tow truck companies?

by a searcher from New York University - Leonard N. Stern School of Business

3 years ago

I'm looking into this space and a couple things I really like are (1) highly fragmented (2) lots of assets to lend against w/ the trucks (3) more or less recession proof, though with less cars in general on the road during COVID revenues are probably down overall in the industry

Things I don't like are (1) labor issues in this industry (2) working with AAA which drives pricing down (3) insurance and safety concerns.

Has anyone else considered this space?  It's too small for traditional search funds, but for solo entrepreneurs and self-funded I have seen a couple opportunities with SDE around $1m and asking around 3-3.5x.

4 likes
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5 comments

searcher from University of South Carolina - Darla Moore School of Business

There was an episode on Acquiring Minds a few months ago about a guy who bought a really small one and did quite well with it.

3 months ago | like reply | 0 likes

investor from Vanderbilt University

I own one if you want to chat.

3 years ago | like reply | 0 likes

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