Grand Rapids, MI – February 25, 2025 – Michigan’s towing industry is staring down the barrel of a corporate takeover that could flatten the small, family-owned businesses that have long been its lifeblood. Private equity firms, with their war chests and consolidation fever, are sinking their claws into the fragmented towing sector, seeing dollar signs where local operators see livelihoods. In Michigan, the storm is already brewing: McDonald’s Towing has snatched up Merils Towing in Grand Rapids and is now negotiating to acquire Bud’s Towing—a titan in large truck towing and recovery—tightening its grip on the market. Add to that the looming threat of Vehicle Management Solutions (VMS), a national towing giant backed by Mill Point Capital, potentially winning the Michigan State Police (MSP) towing contract through its ties to the private equity-fueled Traxero software empire, and the picture becomes dire. This isn’t just growth—it’s a monopoly in the making, one that could crush small operators, hike prices for consumers, and hollow out the local soul of an industry rooted in independence, especially in the high-stakes world of large truck towing.
Private equity’s strategy is cold and calculated: buy up smaller players, streamline them into profit machines, and damn the consequences for competition or service. In towing software, this has already played out with Traxero, a company that didn’t buy VMS—or get bought by it—but instead merged with Autura in October 2024, blending public and private towing solutions under the watchful eyes of Nexa Equity and Radian Capital. Traxero now boasts over 3,000 customers and manages 50,000 daily tows nationwide, a juggernaut built on acquisitions and integration. VMS, meanwhile, operates as a separate beast, a Mill Point Capital portfolio company that leans on Traxero’s software to power its sprawling dispatch and storage operations—over 1 million calls handled, by Traxero’s own count. If VMS, with Traxero’s tech in its corner, locks down the MSP contract, it could dominate Michigan’s towing ecosystem, funneling business to itself and its ilk while independents scramble to keep up.
Florida’s towing scene is a grim preview. Private equity stitched together regional firms into Guardian Fleet Services, a multi-state colossus that steamrolled smaller players unable to match its scale or pricing. Michigan’s on the same track. McDonald’s Towing kicked things off by swallowing Merils Towing, a move that bolstered its Grand Rapids foothold. Now, with talks to buy Bud’s Towing—a heavy-duty specialist known for towing and recovering large trucks—McDonald’s is angling for a stranglehold on this niche. Merils had its own big-truck capabilities, and combined with Bud’s expertise, McDonald’s could corner the market on large truck towing, a segment critical to Michigan’s logistics and highway backbone. Whether private equity is bankrolling McDonald’s directly remains murky, but the playbook reeks of their influence.
Bud’s Towing isn’t just another scalp—it’s a cornerstone. With its fleet of heavy-duty rigs and years of recovery know-how, Bud’s is a lifeline for truckers hauling freight across Michigan. Merils brought similar muscle before its sale. Together under McDonald’s, they’d form a near-unbreakable grip on large truck towing in Grand Rapids and beyond, leaving smaller operators without the cash for heavy equipment or the tech to compete in the dust. If VMS and Traxero seal the MSP deal, the synergy could amplify this chokehold, routing state business to McDonald’s and starving independents of a vital revenue stream.
This consolidation trifecta—McDonald’s expansion, VMS’s reach, and Traxero’s software dominance—hits Michigan hard. First, it kills competition. Small towing firms, often family outfits tied to their towns, need fair shots at contracts like the MSP’s to survive. With VMS wielding Traxero’s tech and McDonald’s gobbling up rivals, independents face a stacked deck. Heavy-duty towing, with its steep entry costs, becomes a rich man’s game—unaffordable for shops without private equity muscle or software clout.
Second, it socks consumers and businesses. Large truck towing isn’t a roadside favor—it’s a lifeline for freight haulers and fleet operators, often called in under dire, costly straits. When private equity—or its proxies—rules, profit trumps all. Look at Colorado: 3T Holdings, a private equity-backed outfit, faced heat for jacking up fees and preying on desperate drivers after consolidating towing there. Michigan could see the same: McDonald’s, flush with new turf, and VMS, armed with Traxero’s efficiency, could hike rates, shrink options, and squeeze truckers. That means higher shipping costs, strained supply chains, and pricier goods for everyone.
Third, it guts local economies. Small towing companies like Bud’s hire locally, back community causes, and keep cash in Michigan. Private equity? It’s a vacuum, sucking profits to distant investors while leaving towns poorer. Losing Merils was a blow; losing Bud’s would be a gut punch. Grand Rapids risks becoming a corporate outpost, not a hub of homegrown hustle. Heavy-duty towing, a pillar of Michigan’s industrial might, turns from a local asset to a profit mill.
The signs are screaming: private equity’s towing takeover, via McDonald’s land grab and the VMS-Traxero alliance, is barreling toward a monopoly that flattens small businesses and fleeces consumers—especially in large truck towing. Lawmakers and regulators need to wake up, dig into these deals, and ensure the MSP contract doesn’t become a coronation. Without a fight, Michigan’s towing world could morph into a corporate playground, where independents like Bud’s are history, local control vanishes, and the highways bow to a few fat-cat kings. The tow trucks are rolling—small operators and truckers deserve a stand before they’re dragged off the road for good.