Towing Issues: Thinking if buying a tow company, edmonton alberta canada, tow truck company

Question
Hi,

I am in the process of purchasing a tow truck company in Edmonton Alberta ( Canada). Would you be able tell me anything i should be watching out for ? I know this is a broad questions but the company has 3 truckes ( 2 regular and a flat deck) but only 1 driver and no management in place so i would be starting kind of from scratch. My main concern is with the trucks, what should i be looking for? Should the yearly inspections be a good enough indication of the condition of the truck? what are some average costs i should be budgeting for the trucks? Any ino to lead me the right way would be greatly appreciated.

thanks

Answer
Well talk about a loaded question here.

First of all, do you have any experience in the towing industry as a driver or not would affect how much you know about the business and the equipment

If you have no idea what is happening or what the equipment is and does then you can really get in over your head quick.

You should be able to inspect the trucks or have a mechanic inspect them, but then again unless you know what you are looking for on the towing part of the truck you will be possibly missing some important stuff which could be damaged or broke. Remember that some things are not easy to see.

Sure broke welds and bent deck plates are common on some units due to use, or abuse, but to tell the difference is hard at times.

One driver and no management ? that really scares me as who are you buying the business from ?  Did they drive or just own it and let the 1 driver do it all for them.

Budget for maintenance, well that will depend on the age of the units and even the type of business you are doing with them. Motor club calls tend to run the trucks more and rack up more miles. It is not uncommon to have new trucks which run motor club calls which have 100,000 miles or so in 1 to 2 years.
Some retail - commercial oriented companies tend to have lower miles on the trucks due to the style of business they do.

And then do not even get me started on the motor club rates verses the expenses of operating your equipment.

Like I said before there is a big issue here as to the fact that unless you have experience in the industry you might be getting in over your head real fast.
WHY is the owner selling the business ? That should be considered also.

There is a saying in the towing industry which I think applies big time.

Want to make a million dollars in the towing business ???  START WITH 2 MILLION!!!!

Good luck and feel free to ask more questions.