Selling a towing or trades business

The problem

Plenty of good businesses don’t sell for what they’re worth, or don’t sell at all. Buyers walk away when the books aren’t clean, the business depends too much on the owner, or one customer is too big a share of sales.

And the real estate can kill a deal late: a landlord who won’t consent to an assignment, a lease with too little term left, or a property question nobody looked at early. Here, the yard, the trucks and the dispatch relationships are part of what a buyer is buying.

What I do about it

I start with a confidential look at the business and the real estate together, so the things that make buyers nervous get fixed before they ever see them. I know what active buyers are looking for, I help you get the business ready, and I handle the lease or property side, which is where a lot of sales get stuck.

Everything goes through Coldwell Banker Prestige Realty and is agreed in writing first.

Ready now or planning ahead, the first step is the same. See succession planning for what happens on the first call, realistic timing and what to gather.

What buyers in this space look for

• Contracts and repeat accounts, like property managers, fleets, commercial clients or service agreements, as well as one-off calls.
• Licensed, certified people who plan to stay, and a dispatcher or lead hand who keeps the day organised.
• Trucks and equipment with maintenance records and a replacement plan.
• A yard or shop with zoning that allows the use, and a lease that can transfer.
• A good safety and service record, and the insurance history to show it.
• Steady profit. Individual buyers often start with businesses earning a few hundred thousand dollars a year in profit. Private equity and holding-company buyers usually look for about $1 million or more, sometimes by putting several smaller businesses together.

Why and when owners sell

Usually because the owner has been on call for years and is ready for a break, or wants to retire and there’s no one in the family who wants the pager. Selling to a buyer who keeps the crew and the name is a common outcome.

How a confidential sale works

1. A first conversation. Just us. What you have, what you want and when.
2. A quiet look at the business and the real estate. I can tell you what buyers are likely to like and where they’ll push.
3. Getting ready. Statements, the lease or property, a list of what’s included. Your accountant and lawyer come in early.
4. Approaching buyers carefully. A short, anonymous summary first. Details only after a confidentiality agreement, and only to buyers you’re comfortable with.
5. Offers and due diligence. Usually a letter of intent, then a closer look at the books, contracts, staff, equipment and the lease.
6. The lease or property. Landlord consent and a release, or the property terms if you own the building. This is where deals often stall, so I start on it early.
7. Closing and handover. Many owners stay on for a set period to help with the transition, if they want to.

Where the real estate fits

For towing and trades, the yard can be the hardest thing to replace. Zoning for storage, impound or vehicle use is limited, so a good yard on a solid lease, or one you own, adds real value.

Any work I do on a sale is through Coldwell Banker Prestige Realty and agreed in writing first. Where the sale is shares only, with no real estate, I’ll say so up front and work with your lawyer and accountant on those parts.

Where everybody wins

You want a fair price, care for your staff and customers, and a clean exit. A buyer wants a well-run business they can trust, with a lease or property that supports it. A landlord wants a strong new tenant.

When the business is ready and the real estate is sorted early, all three can say yes.

Questions people ask

Who buys towing and trades businesses in BC?

Individual buyers who want to run a business, competitors looking to grow, and private equity or holding-company buyers who combine several businesses in the same field.

Is my yard part of the sale?

If you lease it, the lease usually needs to be assigned with the landlord’s consent. If you own it, you can sell it with the business or keep it and lease it to the buyer.