Forbes Magazine on Pest Control M&A

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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.”

This month we’ll be publishing (for subscribers of our Potomac Pest Control Executive):

  1. An update on global pest control valuations — if you’re in the market buying and selling, this is not something that you’ll not want to miss. Opportunities abound on both sides of the aisle and we’re about to break it down for you.
  2. A recorded seminar on selling a pest control company with information that I can absolutely guarantee you’ve never heard. And if you do one of the things that I mention, it’s going to put an extra 20% in your pocket at the closing table.
  3. … and last but not least, my thoughts on direct to consumer door-to-door sales. We’ll publish that as a follow up to our cover story in PCT’s February 2016.

Finally, I’d like to say congratulations to David and his team. If you’re interested in reading how Royce built a business from zero to $100 million in less than four years, go ye here.

 

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About Paul Giannamore

Managing Director at The Potomac Company where I head the firm's strategy consulting and investment banking practice focused on the structural pest control and integrated facilities services industries. I write the Pest Control M&A Weekly Commentary and The Potomac Pest Control Executive, newsletters read by thousands pest control professionals in scores of 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. Based in Geneva, Switzerland, I'm a graduate of Cornell University, and I speak Italian, Spanish, Arabic and broken French. Join me on LinkedIn