About Paul Giannamore

Managing Director at The Potomac Company where I head the firm's strategy consulting and investment banking practice. I edit The Potomac Pest Control Executive, a newsletter read by over 10,000 pest control professionals in over 25 countries (you can subscribe to it below). In a nutshell, I do two things: (1) advise shareholders and senior management of pest management firms on creating value in their businesses, (2) advise sellers on the sale of their businesses. I am a certified and accredited business appraiser, a graduate of Cornell University and I speak Italian, Spanish, Arabic and broken French. Join me on LinkedIn and Join me on Google+

Pest Control Private Equity and Search Funds, A Public Service Announcement

This is a friendly message to those in the private equity and search fund space, in hopes to save you (and us) a lot of time.

The pest control industry is a great business and I am very happy that you have interest in it.

We are contacted on a daily basis by private equity firms and search funds looking to get into the pest control industry. On very rare occasions (perhaps once per year), we include non-strategic acquirers to process. In the current environment (May 2018), it is almost impossible for financial buyers to compete with strategics. [Read more…]

Pest Control Mergers & Acquisitions (M&A) – Weekly Commentary – May 21, 2018

In this week’s commentary, we’ll be discussing:

  • Market Overview // Rentokil Acquires PCT Top 100 Advanced Pest Management
  • The Long Read: Should You Knock Doors? The Economics of Door-to-Door Sales
  • What Do You Really Need in Terms of M&A Tax Advice?

[Read more…]

Should You Knock Doors? The Economics of Pest Control Door-to-Door Sales

Illustration Credit: PCT Magazine, Feb 2016

Since PCT Magazine printed its February 2016 cover story, “Who’s Knocking at Your Door?” [Download it here: PCT Whos Knocking at Your Door], I’ve received a litany of questions on door-to-door sales. This article was printed on the heels of the ServiceMaster acquisition of Alterra, which, at the time, was the largest door-to-door (“D2D”) pest control company on the globe, having gone from $0 to $75 million in the three years prior to the acquisition.

In 2017, we estimate that approximately $150 million in pest control revenue was sold on the doors in North America.

I find that most of you fall into two broad camps when it comes to door-to-door sales: [Read more…]

Pest Control Mergers & Acquisitions (M&A) – Weekly Commentary – May 15, 2018

In this week’s commentary, we’ll be discussing:

  • Market Overview – 15 May 2018
  • Anticimex’s acquisition of Killingsworth Environmental in Charlotte
  • Potomac’s new European HQ in Switzerland
  • Meetings in Madrid in May

[Read more…]

Rollins to Acquire Northwest Exterminating Co for $120 Million in Cash

 

Rollins, Inc. has entered into a definitive purchase agreement with Northwest Exterminating Co., Inc. to acquire its pest control business. This will be a cash purchase, and the transaction is expected to close in early August, subject to the satisfaction of customary conditions and regulatory approval. This is Rollins’ largest acquisition since it acquired HomeTeam Pest Defense in 2008. [Read more…]

Potomac Announces 6 Transactions: Singapore, Anticimex, Canada, and Brad Harbison of PCT Magazine and No Severed Horse Head

As we slowly begin to move into pest control M&A season, we’re pleased to announce six transactions:

Brad Harbison’s (Managing Editor, PCT Magazine) Pest Control Business was Acquired by (…wait for it…) in a Competitive, Strategic Sale Process

What pest control company ensures that the home of industry glitterati and managing editor of PCT Magazine remains pest-free? [Read more…]

The Curious Case of Western Exterminator: How One Mistake Cost the Shareholders Millions on Their Sale to Rentokil and How You Can Avoid Making the Same Mistake

On the morning of November 29th, 2011, I arrived at the offices of the wealth management firm Greycourt & Co. in Pittsburgh to meet with David Lovejoy, the grandson of Ray Lovejoy, one of the founders of Western Exterminators (“Western”). At the time, David was the head of a voting block (one of three) that controlled about 40% of the equity of the business.

I was in Pittsburgh that morning on behalf of our client, Scotts LawnService (“Scotts” or “the Company”). The President of Scotts had recently engaged Potomac to advise Scotts on its formal entry into the pest control industry. [Read more…]

Do You Make These Mistakes with Your Pest Control Employment and Non-Competition Agreements?

We all remember the scene in the movie Jerry Maguire when Jerry finally has had it with his client Rod Tidwell. He corners Rod in the locker room and makes the following emotional appeal:

I am out here for you.Help Me Help You

You don’t know what it’s like to be ME out here for YOU!

It is an up-at-dawn, pride-swallowing siege that I will never fully tell you about, ok? Help me… help me, help you Rod. Help me, help you. HELP ME…HELP YOU!

While my job is not always a pride-swallowing siege, I often find myself in similar conversations with clients. One area that I find myself discussing more than I’d like is the topic of employment agreements. Like heart disease, they’re a silent killer. Not everyone will have issues with them, but those that do are often in for a real ass whipping. [Read more…]

Forbes Magazine on Pest Control M&A

Alterra Forbes Potomac

In the May 31, 2016 print edition of Forbes, the magazine discussed the recent acquisition of our client Alterra by Terminix as well asPotomac Company Forbes Magazine transaction multiples in the industry. Karsten Strauss, in his Forbes article said:

“After three and a half years in operation Alterra shot to $75 million in revenue–at just the right time. In recent years consolidation in the$7.8 billion U.S. pest-control industry has been pushing valuations as high as 2.5 times revenue, twice the usual multiple. That’s been fueled partly by a string of U.S. acquisitions by Rentokil, a U.K. company. Last year Royce hired Paul Giannamore, a pest-industry specialist with the Potomac Co., a boutique investment bank, to negotiate a sale to Terminix, this one for an estimated $135 million. “He couldn’t have timed the market better if he’d tried,” Giannamore says.” [Read more…]

Potomac Announces Strategic M&A Transaction for Catseye to Fund Future Growth of the Brand

Catseye USA Team

The Catseye USA team (Catseye Pest Control’s parent / media company). I am in the mix as well. They say a camera adds 10 pounds to you, apparently they had 3 or 4 cameras on me.

Well, the cat’s out of the bag…(sorry, that’s something my father would say while the rest of us would just roll our eyes… I guess I’m getting old) ServiceMaster is now the proud owner of certain assets of the Catseye family — a PCT Top 100 pest control company.

To the outside world, this looks like a simple transaction. [Read more…]