M&A activity snapshot
Towing is still overwhelmingly owner-operated, and that is the opportunity buyers are chasing. IBISWorld's March 2026 report, as cited by Autura, counts just under 40,000 U.S. towing businesses generating roughly $11.8 billion a year, with no company above 5% market share. Census data, which covers only employer firms, put towing revenue at $12,694 million in 2022, the latest year in that series.
Good deal data for this vertical does not exist. Axia found no towing-specific deal counts or multiples in the public LMM data it reviewed, and most transactions are small asset sales. The picture below is built from platform press releases, SEC filings, and BizBuySell small-business data. Treat it as directional.
The pattern is clear even without counts. PE-backed platforms are buying regional operators one market at a time. FirstLine has added more than a dozen independent operators since 2022 and now runs over 20 locations in Texas and over 100 across the U.S. Meanwhile, the roadside-assistance networks that send work to tow operators are consolidating at the top.
Who is buying
PE-backed towing platforms. Seaside Equity Partners backs FirstLine, whose add-on criteria are towing, transport, recovery and environmental services in the Western U.S. at $500k+ EBITDA. Mill Point Capital bought VMS in 2022, when it dispatched ~300,000 tows and managed ~100,000 impounded cars annually.
New sponsors and independent sponsors. In August 2026, Access Holdings took a controlling investment in Reliable Towing, a Pacific Northwest platform built with independent sponsor Paul Parhar. Access called towing a fragmented segment "largely overlooked by institutional capital" and plans to keep adding local operators.
Roadside-assistance networks. These companies dispatch jobs for automakers, insurers, and fleets rather than own trucks. Agero completed its purchase of Urgently on April 28, 2026, at $5.50 per share in cash. Agero says the combined business serves over 150 million vehicles and manages 13 million events annually. Frontenac bought Honk, which completed an add-on acquisition of CurbsideSOS at closing. These buyers shape operator economics but rarely acquire tow companies.
Individual buyers and neighbors. Below the platform threshold, most towing businesses still sell to individuals or nearby operators through brokers. BizBuySell's median towing sale price is $1,350,000.
What buyers look for
Contract mix. Autura lists contract mix (municipal versus private property versus roadside), fleet age, owned versus leased real estate, customer concentration, and owner dependence as the factors buyers weigh. Police rotation and municipal contracts are prized because competitors cannot easily win them.
Transferable rotation and municipal contracts. Many do not transfer cleanly. One Utah police department removes a company sold during the rotation year from the rotation and calls the agreement non-transferable. The same agreement requires arrival at the scene within 20 minutes, so response-time records matter in diligence.
Limited motor-club dependence. Motor-club volume is steady but price-driven. Urgently's 10-K says small operators often contract with multiple motor clubs and choose jobs based on factors including the rates offered. A business that lives on motor-club calls has little pricing power.
Licensing and regulatory compliance. States license towing heavily. Texas licenses tow companies, each truck, and each operator, with 31,755 licensees in FY 25. It also caps a light-duty private property tow at $272, so private-property revenue has a regulatory ceiling.
Impound and storage capacity. Platforms value lots and vehicle-storage operations, not just trucks. As of 2022, VMS also sold ~30,000 unclaimed vehicles annually, a revenue line tied to impound volume.
What makes a strong company
A towing operator that draws platform interest typically has:
- Written police rotation, municipal, and fleet contracts, with assignment terms checked before a sale.
- A mix of light-, medium-, and heavy-duty capability; heavy recovery is harder to replicate.
- Clean licensing, insurance, and drug-testing records for every truck and driver.
- A documented safety program. AAA Foundation researchers found 123 roadside assistance providers killed by passing vehicles between 2015 and 2021.
- Owned or long-leased storage lots, and digital dispatch, billing, and impound records.
- A fleet with a maintenance history and no deferred replacement.
- EBITDA above platform add-on minimums, such as FirstLine's $500k+.
Equipment costs are a real constraint. Miller Industries, the wrecker maker, says operator demand is affected by access to credit and rising costs of equipment ownership, including rising insurance costs.
Valuation and deal structure
The only public multiples are for small businesses. BizBuySell reports an average earnings multiple of 3.28 and an average revenue multiple of 0.92, on median owner earnings of $428,547 for towing businesses sold on its marketplace. No reliable public data exists for what PE platforms pay for larger operators, and Axia does not estimate one.
Most deals are asset purchases. Autura notes buyers typically acquire trucks, equipment, contracts, customer lists, and real estate rather than the legal entity. Price can include cash at close, seller financing, or an earnout. Platforms often keep the seller's brand and team: FirstLine says SAS's management team will continue to lead operations.
Timelines run longer than the listing suggests. Towing businesses spend a median of 226 days on the market before diligence starts. Contract transfers and real estate add time. To see where your own numbers sit, use the valuation tool.
Outlook
Expect roll-up activity to continue through 2027, with new sponsors following FirstLine and VMS into regional towing. Access Holdings cites aging vehicle fleets, growing freight and delivery volumes, increasing vehicle complexity, and severe-weather events as demand drivers. Retirement is the supply driver: Autura says many owners are nearing retirement age without a next generation ready to take over.
Two pressures cut the other way. Consolidation of dispatch networks, with Agero absorbing Urgently, gives fewer, larger buyers of operator capacity more pricing power. Equipment is also cyclical: Miller's net sales fell 37.2% in 2025 as it cut production to reduce distributor inventory. Operators with contracts that survive a sale will be best placed either way.
Own a towing or roadside business and want to know what it's worth before you talk to anyone? Run the valuation tool. See also: the off-market deal sourcing channels buyers use and the Automotive & Equipment Services industry overview.