Tow Professional Podcast
Tow Professional Podcast
A Million-Dollar Towing Enterprise Awaits: Insights with Karl Taft
Uncover a golden opportunity in the towing industry with insights from Karl Taft, a distinguished business broker from Transworld Business Advisors. Our guest reveals the secrets behind a thriving towing business in the bustling Dallas-Fort Worth area, boasting a 30-year legacy and strategic operations across three locations. As hosts DJ Harrington and Darren Weaver, we explore how this enterprise is seeing impressive sales close to $3.8 million, with robust infrastructure and an enticing growth trajectory that entrepreneurs won't want to miss.
Considering expanding your business portfolio or making a strategic entry into the towing sector? Karl shares not just the financial allure of this acquisition, such as its significant equipment valued at over $3 million, but also profiles ideal buyers, ranging from other towing companies to logistics firms. We touch upon the intriguing possibility of owner financing, making it a turnkey opportunity ripe for the picking. With projected net income of a million dollars and gross revenues exceeding $4 million, this episode is packed with exciting details for savvy investors ready to seize the day. Reach out for more information and position yourself at the forefront of this lucrative industry.
Welcome one and all. You know you're on Toe Professional Podcast. It's for the pros that have a need to know that are on the go. I'm DJ Harrington, better known as your Toe Doctor. I'm the co-host of the program, but the real host of the program is the president and CEO of Toe Professional Magazine, a good friend of the industry, a dear friend of mine, Darren Weaver. Darren, how are you this day?
Speaker 3:Man, dj, as always, I am fantastic. It's a damp, rainy day down here in Birmingham, alabama, so it's a great day to be doing a podcast, I'll tell you. And, man, we've got a great one today, I'll tell you. When people are looking at the economy, changing business, picking up things, starting to move, they start thinking about how do I expand? And we've got a great one for them today because we have Carl Taft on here that's a business broker for Transworld Business Advisors and he's going to tell us about a company that's coming up. So it is going to be a fantastic show and I think one DJ our listeners are going to want to stay tuned in on and listen to it to the end.
Speaker 1:Carl, let me ask you this Tell our listeners a little bit about yourself and a little bit about your background. Yeah, absolutely.
Speaker 4:I mean thanks, thanks, dj. Yeah, I again Carl Taft, business broker with Transworld business advisors. Basically what that means is I buy, sell, value and position businesses for entrepreneurs. Last 20 years I was that crazy entrepreneur taking things from an idea phase to you know several million in sales, selling businesses. Over the years I've built and sold four businesses. I just really have a passion for helping other owners. Last business I had was a trucking company. I ran a 30-power unit bulk liquid transportation company. We were doing a lot of OTR stuff In the space. That means we're basically taking freight all over the country for a lot of chemical companies and food production facilities. Did that for about eight years before selling the business to my dear friend and partner who's still in the game today.
Speaker 1:Awesome. I know for a fact, carl, our listeners they need to start taking their pen and paper out, because there are going to be some questions that's going to come up. I know it already, so, darren, I'll pass it over to you.
Speaker 3:Yeah, this one's got me excited right here, dj, because they're going to be looking at this and they're going to see it's a viable opportunity. So, carl, I want to give you an opportunity to tell our listeners about it. So tell us about the business that's coming up for sale and what they're offering.
Speaker 4:Yeah, absolutely. This is a great towing business here. I live in Dallas, so this business is in the Dallas-Fort Worth Metroplex. It's been around for 30 years. They do all different types of hooks. They do light, medium and heavy duty towing. I have about 25 employees and the owner spends around 40 hours a week on the business because they want to, not because they have to. They service auto repair shops, commercial trucking companies, dealerships, police and sheriff departments and private individuals. They've got three locations that go from east to west or west to east in the Metroplex, so fairly spread out, and two of those locations are vehicle storage facilities. Sales of the business were roughly $3.8 million last year. They're on track to do better than that this year. And just for reference right, because we're all in business to make money the business will put between $800,000 to $1 dollars to the bottom this year. That's 2024.
Speaker 3:Wow, carl, I'll tell you that sounds like a fantastic opportunity. So now you've got a business that's got light, medium and heavy-duty equipment there. They've got 30 years laid down in the industry, making a name for theirself and establishing those accounts, making a name for their self and establishing those accounts. And now they're setting up for a banner year and looking for somebody that would take advantage of this opportunity of a company that's already had the concrete poured up under it to put a lasting foundation. And this is fantastic, carl. Well, listen, what we're going to do is we're going to take a quick break, listen from our sponsors and we'll come right back. Listeners, keep your pen and paper ready. We'll be right back with Carl Taft of Transworld Business Advisors. Hang in there.
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Speaker 1:Welcome back listeners. Of course you know you're listening to the number one podcast, the professional on-the-go podcast with Darren Weaver and DJ Harrington. Our special guest today is Carl, and this is really Transworld Advisors is one of the best around. So let me ask this of you, carl Are there any? You know we're talking about the sale of this company in Texas. Are there any special requirements needed for the new owner?
Speaker 4:Yeah, you know, because this is a towing company and it's a great question, and because they do work for sheriff and police departments, I mean they must be knowledgeable in the business and industry, right, those types of customers are going to want to know. Right, and as part of that, criminal background checks will be required. Right, to keep that book of business. You know, on top of that you'll need to have a few licenses to operate and release cars out of a VSF or vehicle storage facility, right, and ultimately, because you've got class A vehicles I mean the stuff that goes with that you'll have to oversee staff compliance, inspection, drug testing et cetera. Right, but not not any one thing is a heavy lift.
Speaker 1:Just just owners be aware that those are all requirements to own a business like this and you would help the person. They would contact you and you would give them the list of what to do and then you'd help them with this process.
Speaker 4:Absolutely, and we would interface with the existing ownership. Make sure the transition plan was seamless, right? Nobody wants to buy a business and just have it crater under its own weight, right? We want to have a smooth changing of the guards, if you will, from old ownership to new ownership.
Speaker 1:Do you do this for all your customers?
Speaker 4:Yeah, absolutely, I mean the best. You know. My job doesn't stop after you know people. Money exchanges hands and LLCs you know, go from one entity to the other.
Speaker 4:It's really making sure that the new entity lives on right, because every owner that cares about their employees cares about the baby that they've grown over 5, 10, 15 or more years wants to know is it going to be taken care of Is my legacy going to live on and I take that very seriously and we do everything we can to make sure it goes from one owner to the other as smoothly as possible.
Speaker 1:This is a good experience. All right, Darren, go ahead and ask your question. I know it's coming next.
Speaker 3:Well, carl, the next I wanted to ask you is, first off and I know my listeners are going to ask this would the business be in there 30 years? My thought is the owner is thinking, hey, it's time to go to the beach, but why is he or she selling the business at the current time?
Speaker 4:Yeah, you should be a psychic Darren, get out your crystal ball. That's exactly right. I mean it's just time, right. I mean been in the business a long time, got enough gray hairs to show for it and just look and move on. But it's not because it's a bad business, it's because they're just ready to you know this stage in their life.
Speaker 3:And I tell you I think that's fantastic. You see, so many times a business owner will run that business for past the 30 and go 40, 50 years and then get out of it, just to pass a couple of years later. And we're seeing the trend more business owners now are building that substantial business and then going and enjoying the fruits of their labor. So that makes a lot of sense, without a doubt. Well, DJ, I'm going to throw it back to you, sir.
Speaker 1:Well, here's what I want to ask Before we take another break. There's a lot of our listeners, carl, that have family members that do not want to go into the business. So they do sell, and that's why a lot of owners, they sit there, they ask their son if they want to do it, they ask their daughter, they ask their daughter's husband if he would like to participate in the towing industry, and they just don. Don't. So now I'm down to. The question is who might be interested in a business like this?
Speaker 4:and out of our, there's a lot of possibilities yeah, there, there really is, and you know it can be a blank canvas, but I'd say there's probably three, three buckets, with two of those buckets being maybe the most obvious. I mean the first one is just another towing company, right?
Speaker 4:Or somebody that's been in the space for a while. Right, it's a way to expand sales or expand service offerings or coverages. Right, it makes a lot of sense for somebody in the space to look at a business like this. Transportation and logistics companies could be another. I mean, when I was running 30 power units, I mean we'd get a toll bill, you know, once a quarter or something like that, and it was. You know it's a big ticket and I can easily see, if you have enough power units in your fleet, that adding something like this to your capabilities could be a good option for you, right? And the third bucket would be construction heavy equipment companies that might have an interest, depending on their specific operational focus and need.
Speaker 1:I got you. I know one of the questions. Let's talk about it after we take our break, though, darren. I know for a fact one of our listeners is going to tell us is there any owner financing involved in this sale? So let's take a break. Let's talk about it when we come back with more.
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Speaker 1:Welcome back listeners, of course you know you're listening to Toe Professional on the Go podcast. I want to remind all of our listeners we're available every week and every episode. Dan and I do our best to bring you informative information like this one today. We're available on Spotify, itunes, pandora, stitcher, iheartmedia the number one podcast in the country Amazon or wherever you get your podcasts. So just before the break, I was asking Carl about special financing, or is their owner doing any kind of financing?
Speaker 1:And I wanted him to tell you guys exactly what he said while we were on break. Go ahead, Carl.
Speaker 4:Yeah, absolutely, peter. Thanks. I mean this is a fantastic opportunity. I think there's a lot of interest in the market and it'll probably get hooked up pardon the pun pretty quick. But certainly I mean any offers will be considered and looked at and we'll react accordingly.
Speaker 3:Well, I know the listeners a bit. Wish this was a second question we asked instead of the sixth or seventh. But, carl, I do want to ask for our listeners. You said they do light, medium and heavy-duty work, so what kind of equipment do they have that the owners transfer into the next owner?
Speaker 4:Yeah, absolutely. There's quite a bit of equipment in this business. Total value is over $3 million. There's quite a bit of equipment in this business. Total value is over $3 million. I can't remember the exact count, but there's maybe 20 pieces of equipment the heaviest focus, if you will there's roughly 10 flatbeds, 4, 25 to 27 ton heavy-duty towers, 150 ton one heavy-duty trailer. If I didn't say it, there's a wheel lift in there as well.
Speaker 3:Wow. So, Carl, we're talking about a business that's not only established for 30 years, that's got three locations, but also has almost $3 million worth of equipment and is on pace to do a million dollars bring home next year with the business and over four million as a gross. That's phenomenal. Am I saying that right?
Speaker 4:Yeah, that sounds exactly right. That's what we're looking at.
Speaker 3:Wow, man, I tell you listeners, don't sleep on this one. This is going to be a great opportunity for somebody for something that's already built and the cruise control is turned on. You just got to get behind the wheel and uh and steer it. Well, dj, I'm gonna turn that next question over to you, sir yeah, this is my favorite one, so reason why I asked this question is I want to know.
Speaker 1:How can we find out more about the business? Give us your direct number. Give us how to get a hold of you, and then I'll go from there.
Speaker 4:Yeah, great, appreciate you asking. You know they can email me at ktaft, at tworldcom, all one word tworldcom okay, so it's k-t-a-f-t at tworldcom or 214 475 2728.
Speaker 1:Now here's what I want to ask you, and this is I want to tell all our listeners this is coming from the toe doctor to Carl, who's the pro at this If we have a listener that listens on a regular basis to Phil Professor on the Go podcast and he wants to ask you you know he and his wife were kicking around at the kitchen table. They've been in business a while. None of their children want to take over the business. They've asked their son-in-law. Could they call you and would you help them out a little bit and let them know? You know they'll say they'll start by this way. Carl, I listened to the podcast. Could you help me a little bit in transitioning to a sale six months from now or eight months from now? Do you have any tips for that guy?
Speaker 4:oh, absolutely. I mean, I'd be happy to. All they have to do is just mention they're a fan of the show and I'll help them any way I can.
Speaker 1:Yeah, because, carl, I know for a fact that you know Aaron and I go to all the tow shows and you sit there and you listen to fellow towers and they say you know, my son doesn't want to go into the business.
Speaker 2:My son wants to go into the body shop business.
Speaker 1:He doesn't want anything to do with towing and that's part of it. So I land up giving them the body shop end of the business, but by towing him he doesn't want. So all of a sudden now I want to sell that part of it. Could you help me and my wife go through that process? And it's you know, knowing somebody like you that brokers businesses good guy to know down the road.
Speaker 3:Well, carl, you were saying earlier when we were talking that you know, not only are you able to do a deep dive that's you know, could be 40 pages deep and really look into a company and tell somebody what they're doing and of course something like that costs dollars to do but you also will take a what were you saying? A complimentary look at it for them and give them an idea of the direction ahead to get to the point of the sale.
Speaker 4:Oh yeah, absolutely. I mean, look, as business owners, you got to know where you're at, where you want to be Right and what it's going to take to get there, and you know, as part of that, I'd love to help your listeners, even if it's over over the phone or Zoom or what have you. I can certainly do that. That would be complimentary, and more than that, not only say what I think the business will transact for, but also what things they could do to increase the value of their business will transact for, but also what things they can do to increase the value of their business and for your listeners out there.
Speaker 4:Our office does about a deal a day. I mean, we sell a lot of businesses out there. They're not all towing companies, but we certainly know what things transact for and what we'll sell. Right, we don't want to go to market and sell a business or try to sell a business and just have it sit there and nobody's nibbling, right? We want to help owners that if they're going to go to market, they're going to sell their business and have confidence some degree of confidence that at that price the business will sell.
Speaker 3:Yeah, and I think that's the key right there. And when listeners can reach out, you can give them a little direction. That's a client that, in six months, is ready for you to sell the company. So this is huge, dj. I think this was a great guest, a great guest on here, and it's a lot of fantastic information, and somebody is going to end up with a golden goose here in the future that's going to continue to make those golden eggs and provide them a future for their family when they look into this company. So, as always, dj, you got any final words before I wrap this up.
Speaker 1:I just wanted to thank Carl for being on, because we have so many listeners, carl and you know we've got close to 18,000 listeners and a lot of them have sons, daughters, wives, relatives that have other businesses. So it's good to know that Trans World Advisors is actually a company that sells businesses across the board. So if my wife has a business that she would like to sell and doesn't know who to turn to, you would be kind enough to talk to that person too, 100% toe doctor, 100%.
Speaker 1:So all of a sudden, Carl, it's almost like one of these things where Darren's whole philosophy of this podcast is how can we help our listeners improve their bottom line, not only in the industry, but in their family life and in their loved ones, because it's a total atmosphere. So this is a good one, Darren. And I'll turn it over to you, Darren, for your final wishes on our listeners.
Speaker 3:Yes, sir, yes sir, Thank you Again. Carl, thank you so much for being on today and listeners, as always. I want to end this with a prayer. Dear Heavenly Father, we just thank you for our great nation, we thank you for protecting it. We thank you for our wonderful vendors. We just ask you, continue to increase their knowledge, continue to bless them, prosper them and grow them so they can bring more products and prosperity to this industry. And God bless our tow professionals, our men and women that go out there with a servant's heart every day and give their most for some people that don't think a lot about them. And, dear Lord, we just ask you, pick that perspective up in the industry, allow our tow professionals to shine and continue to bless them and keep them safe and return them to their family. Until next time, keep listening and we'll be back with other great guests like Carl Taft of Transworld Advisors. Thanks again, and God bless Music, music.