Buy a Towing Company, Then Scale It

Is it worth it to buy a towing company?

It’s a question more investors and operators are asking — especially in the trades.

After listening to the Owned & Operated podcast featuring Matthew Saskin, a tech exec turned towing operator, the answer is clear:

Yes — sometimes.

But in a fragmented industry full of overpriced trucks and unclear financials, you need to approach with caution and a strategy for scale.

Most Towing Companies Are Just Trucks and Vibes

Matthew Saskin bought his first towing business in Raleigh after exiting a real estate portfolio. He wasn’t looking for shiny tow trucks — he wanted:

• Recurring cash flow
• Operational independence
• A company with real potential to scale a towing operation

He skipped the flashy trade shows and instead dug into a smaller summit where operators talked about real numbers, margins, and systems.

What made his acquisition different?

• The company had already gone through an ownership transition
• The owner wasn’t driving trucks or dispatching
• The team ran independently — no micromanagement required
• No late-night dispatch calls
• Solid foundation for long-term growth

That made it a rare find in the towing space — and a platform worth scaling.

What to Avoid When You Buy a Towing Company

Buying a towing company sounds straightforward — but most of them aren’t built to last.

Matthew sees the same problems over and over again.

Red flags when evaluating a tow business:

• Too many trucks, too little revenue
• Overpriced based on shiny assets, not profit
• No operational structure or team hierarchy
• Confusing financials (SDE instead of EBITDA)
• Asking prices that don’t reflect actual cash flow

One listing asked $2.4M for $2.8M in revenue and only $400K in profit.

“Most of these companies are only worth their asset value,” Matthew said. “But sellers want asset value plus a premium.”

You Can Scale a Towing Company — But Only If It’s Built Right

Matthew is proof that you can scale a towing company. He’s expanded beyond his first acquisition and now runs:

• Six locations
• Adjacent verticals like heavy hauling and fleet maintenance
• A growing leadership team with managers promoted from within

He didn’t rush growth.
He waited until his team could solve problems the right way, not just the fastest way.

This is the key difference between buying a towing job and buying a scalable towing business.

Ask This Before You Buy a Towing Company

If you’re thinking about buying a towing company, here’s the most important question you can ask:

Is this a real business, or just a guy with too many trucks?

You're looking at a scalable operation if:

• The owner isn’t essential to daily operations
• Dispatch, maintenance, and management are handled by a team
• Clean, trackable financials (preferably EBITDA-based) are available
• There’s recurring revenue or B2B contracts
• Growth potential comes from systems, not just more trucks

It’s probably not a good deal if:

• The owner is the driver, dispatcher, and bookkeeper
• Numbers are estimated, handwritten, or hard to verify
• The business is fueled by hustle, not structure
• Pricing and margins are inconsistent
• There’s no room to delegate or scale

Final Thoughts: Buying to Scale, Not Just Survive

There’s real upside when you buy a towing company (or any service business) — but only if you’re buying the right one.

The market is full of assets dressed up as businesses. But if you find a company with systems, people, and cash flow that runs without the owner?

You’ve found something worth building.

To scale a towing company, you don’t need more trucks — you need better systems, better people, and a plan for growth.

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