Towing & Diesel Repair Brokerage – Simple, Scalable Business Models!

Los Angeles, CA (Los Angeles County)

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Asking Price: $99,000

Cash Flow: $72,834

Gross Revenue: $116,679

EBITDA: $72,834

FF&E: N/A

Inventory: N/A

Rent: $1,200 /Month

Established: 2018

Towing & Diesel Repair Brokerage – Simple, Scalable Business Models!

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Business Description

These two related businesses, a towing lead generation and referral service and a diesel engine repair and brokerage business each have simple and highly scalable business models. The two enterprises were launched as ancillary income providers to the seller’s primary business, but became their own attractive ultra-low maintenance profit centers. As it stands, owner’s primary business is moving and storage. With experience gained via that firm’s moving truck engine repairs, a market need for diesel mechanic service was recognized. As a result the company launched a small repair shop in their excess space and it’s remained busy ever since. The small enterprise requires little effort and does not require significant space, but generates an attractive profit. Similarly, the same marketing techniques used to generate diesel repair leads has been applied to towing. At present the towing brokerage operates on a local referral-only basis, but the model is now proven and can be expanded should a buyer wish to. This tow enterprise utilizes a customer service staffer that is already in place and generates an estimated $12k per annum in profit. Neither side business needs to be sold with the other, but they can be packaged together or included in a larger sale of the parent company. Logistics on how each business segment may fit into a buyer’s space or vision can be worked out once the parameters are set, but the seller will facilitate a smooth transition.

Detailed Information

Location:
Los Angeles, CA
Real Estate:
Leased
Building SF:
1,000
Lease Expiration:
N/A
Employees:
2pt
Facilities:
Each of the two segments require little space. The diesel repair brokerage utilizes a few hundred square feet for onsite repairs, while the towing brokerage can be manage from a mobile phone. The necessary tooling and equipment for diesel repair will be include, as well each businesses a numerous websites.
Competition:
Traditional competition exists from services providers in both industries however each business was developed and launched because of a perceived unmet market need. The founder’s intuition proved correct and both business lines were able to generate sufficient cash flow to grow and develop into their own standalone investments.
Growth & Expansion:
New operators may take each opportunity in any number of directions. First, they may focus on lead generation and continue to refer or broker business out. Alternately, they may prefer to perform the services in-house and retain the associated margins. As it stands, 80% of engine repairs are complete onsite. Given the best practices in place, it seems that lead generation is the underlying core competency that can be scaled and even applied to additional industries with similar market and competitive dynamics.
Support & Training:
4 Weeks at 20 hrs/wk
Reason for Selling:
Personal
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Michael Wildeveld, CBB, CBI, CM&AP, M&AMI, CEPA

Business Listed By:
Ryan Clark

The Veld Group

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Memberships & Certifications:
Indicates membership in The California Association of Business Brokers (CABB). The CABB Certified Business Broker (CBB) certification distinguishes its holder as a seasoned professional who has a solid educational background, proven accomplishments in completing deals, and an active membership in the CABB.

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