What is my towing company worth?

Worked example

Hypothetical. A 9-truck towing company with a storage lot and a dispatcher. About half of revenue is police rotation and motor-club work.

• Revenue $1,100,000, owner earnings (SDE) $320,000, 16 years, about 50% recurring, “I manage, my team does the work”.
• Start at the published 3.28× average.
• Owner involvement: I manage, my team does the work: +0.15×. Buyers pay more when the business runs without the owner.
• Recurring revenue 30–59%: +0.10×. Some contracted or repeat revenue.
• 16 years in business: +0.10×. Long, proven history.
• Adjusted multiple 3.63× × $320,000 = $1,162,000, range $835,000 – $1,405,000.
• Revenue cross-check: $1,100,000 × 0.95× = $1,045,000.

Calculating SDE for a towing company

Start from net profit on your tax return or P&L, then add back:

• Owner salary
• Depreciation on trucks
• Interest on truck loans
• One-time repairs

Only add back what a buyer can verify. See SDE explained: how to calculate owner earnings and add-backs for a full walkthrough.

If there are two working owners, the second owner's salary usually stays as a cost, because a buyer will need to replace that person.